Home GENERAL Auto Insurance Explained: 5 Things Your Policy Might Not Cover

Auto Insurance Explained: 5 Things Your Policy Might Not Cover

While it’s essential to have an auto insurance policy as a driver, it’s equally important to understand how your policy works, what you are covered for, and what you’re not covered for.

Unfortunately, many auto insurance policyholders find themselves in a pickle after realizing their claim won’t be covered. And it can be financially harrowing to realize this only when your claim is rejected.

So, we’ve listed what your standard insurance policy might not cover, so you can plan ahead for the other cost surprises associated with owning a vehicle.

Damages Caused By Natural Disasters

Standard policies do not typically cover damage caused by flooding, hail, and even the sun. Unfortunately, if you only have basic cover, you’ll need to afford these kinds of repair costs out of your pocket. It’s also best not to try and claim for these instances, as frequent claims increase your premiums.

Nevertheless, if you purchase a comprehensive auto insurance plan, you will be covered for these kinds of damages. So, opt for comprehensive cover if you’re shopping around for the cheapest car insurance in Arizona or any other area.

Damage Or Loss Of Personal Belongings

Your handbag, smartphone, laptop, and other personal items in your vehicle are also not covered by basic auto insurance policies.

Fortunately, comprehensive plans provide coverage up to a certain amount for personal items in your vehicle. Alternatively, you can also consider portable possessions insurance, a separate policy covering all your listed items that frequently leave your home.

Commercial Vehicle Use

Unfortunately, another thing that most standard car insurance policies don’t cover is the commercial use of your vehicle. If you are using your vehicle for rideshare, uber services, or any other work-related reason, you won’t be covered.

However, some comprehensive insurance plans offer this kind of protection for drivers.

Third-Party Use

It’s hardly ever wise to lend your vehicle out, even for a quick late-night trip to the nearest store. Should anything happen while another individual is driving your car, you won’t be able to claim the damages.

Your auto insurance policy will only cover damages if the policyholder or listed drivers are using the vehicle at the time of the incident.

Injured Pets

If your pet travels with you in your vehicle, it’s wise to ensure they are covered. Some insurance companies might offer cover for pets who are injured in accidents and other unpredictable events, although they don’t all offer this type of cover.

As a loving pet parent, it’s often best to opt for pet insurance, which is also a separate policy that will offer financial protection from all those abrupt costs associated with pets, like injuries, emergency vet visits, and even vaccinations.

Whether you decide to opt for basic or comprehensive auto insurance, it’s crucial to know what the policy covers. Read through policy terms and conditions carefully before purchasing and compare all your options to get the best premiums and coverage for your needs. Keep in mind that there are effective ways to reduce your premiums, so you should never compromise costs for less cover.

Also Read: Insurance Industry: 4 Key Reasons For Using The Cloud

Tech Cults
Tech Cults is a global technology news platform that provides the trending updates related to the upcoming technology trends, latest business strategies, trending gadgets in the market, latest marketing strategies, telecom sectors, and many other categories.


Antivirus Programs Compared: Who Protects Me Best?

We have taken a closer look at standard antivirus programs for you. The number of viruses, Trojans, and malware is almost incalculable. And day...

Create A Cloud Server And Manage It Remotely With Express Cloud

A new player has recently appeared in the panorama of cloud services: Express Cloud, the platform of the provider CloudItalia which allows you to...

Five Innovations For Industry And Production Through 5G

5G in the industry is closely linked to the campus network projects of the major car manufacturers. These can rightly be considered pioneers in...

Is Your Password Strong Enough?

The most common way to make an unauthorized breach into others’ accounts is by guessing or stealing passwords. Poor passwords are easy to crack,...

Digitizing Business Processes: How?

We have talked many times about the digitization of company documents and workflow, but the actual process with which it should take place is...

Managing Others’ Business – A Quick Guide

What Is The Management Of Other People's Business? In common words, management of other people's affairs occurs when a person voluntarily (i.e., without being obliged)...