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.
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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.
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.
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.