Very many car insurance policyholders know their insurance coverage arrangements but they at night know what auto insurance does not cover.
I can roughly estimate that up to 80 percent of individuals with auto insurance are unaware of the exclusions associated with their plans.
It’s also not uncommon to find someone who has a perfect understanding of what auto insurance covers not to mention what it doesn’t cover.
I want to make you understand what auto insurance does not cover so that you understand your auto insurance exclusions as long as you are aware of the arrangements.
Before I get into the main focus of this article, let me show you a real life event. (The personalities involved are made to believe but the events are true).
Mr. Arnold bought car insurance from Specify Ranch. One day, he gave his car to his friend, Steve, to run some errands.
While Steve was on duty, a hostile driver rammed him from behind while the traffic light flashed red.
The back of Mr. Arnold was badly damaged by the collision. When Steve returned to work, Mr. Arnold decided to file an insurance claim.
When he met with a Specify Ranch representative, he was told they couldn’t pay any claims on the car because he wasn’t the one driving.
This component of his car insurance coverage is international for him. Little did he know that claims arising from problems with his car would only be paid while he was driving.
He had to spend money on repairing his car out of his pocket even though he had auto insurance from Specify Ranch.
Just like Mr Arnold, many people do not know that this is not part of their car insurance coverage.
So that you don’t have to file a claim and be let down by your insurance provider, it’s important to know what auto insurance doesn’t cover.
These are some of the basic exceptions to auto insurance coverage:
Car insurance can cover collisions and accidents but does not cover losses and problems due to natural disasters.
If an event such as a hurricane, earthquake or flood causes damage to your covered vehicle, you are not eligible to claim.
Usually, you will find events such as floods and earthquakes listed under the ‘God’s Story’ section.
Once an event is listed under ‘God’s Story’, you are not eligible to receive any claim payments from your insurance provider.
Although some insurance providers cover such occurrences, it is not basic coverage.
Certain companies may include these events in their coverage but what is common among auto insurance providers is to omit ‘God’s Story’.
It is very important to familiarize yourself with the arrangement of your plan.
Your insurance provider is not responsible for anything that happens to the items stored in your car.
If your car is damaged or confiscated, the items that are in your current car will certainly not be spent.
Auto insurance usually covers issues made to your vehicle and except for anything left in the current vehicle.
If you have a laptop computer, phone, wallet, or any documents in your vehicle and all of them are damaged or brought with your car, your insurance provider will definitely indemnify you only for the car.
It’s also important to remember that running units, navigation systems, custom mounts, track systems, and a variety of other third-party car kits are not covered under auto insurance coverage.
Insurance providers will constantly request authority records when the insured vehicle is taken.
An authority record is among the many documents that will stand as proof of opportunity for a claim to be paid.
In place of negligence, your insurance provider will not provide you with any payment.
Negligent activities such as not remembering the keys in the car, wrong parking, not securing the car door properly, and so on will certainly not be wasted.
Your insurance company will investigate your claim application and if they learn that the damage was caused by your negligence, your application will be rejected.
Great care must be taken when handling your car.
If your car is damaged while being used for industrial or business purposes, the claim will not be paid.
This does not mean that insurance providers do not cover cars that are used for industrial purposes.
The truth is that using your car for industrial purposes when there are no provisions that allow such use, there is no claim to pay.
There are auto insurance coverage plans that cover industrial vehicles and if you are most likely going to use your car under consideration, you should buy the plan.
One thing that is very important in what auto insurance does not cover is the use of third parties as seen in the example I gave earlier.
If someone else is driving your car and it is damaged, your insurance provider will not pay the claim.
Using someone else’s car and sustaining any kind of damage does not qualify you for a claim.
Last thought
One piece of advice I always give policyholders and what it means to policyholders is for them to familiarize themselves with the arrangement of their insurance coverage.
When it comes to auto insurance, there are some exceptions that many policyholders don’t know about.
All natural disasters are rarely covered by car insurance. Also, the items in your car are not protected.
You can contact an insurance broker to help you with aspects of insurance coverage that you do not understand.
This will save you from frustration during the claim process.