Just because you have comprehensive and collision insurance coverage, it doesn't mean that your insurance company will compensate every loss your car might suffer or cause. Ask your insurance company what they do and don't cover. Below are some of the losses your collision and comprehensive coverage might exclude.
Intentional Losses
Your insurance coverage won't come to your rescue if you cause intentional damage or injury. For example, if you drive your car into another person's car in a fit of road rage, don't expect your insurance to pay for the related damages. Auto insurance companies, just like the government, encourage responsible driving.
Own Property Damage
The coverage also excludes damages your car might cause to your own property. For example, you can't claim damages from your insurance company if you accidentally drive your car into your house while trying to park. This exclusion includes damages you might cause to the property you have rented or leased.
Family Member Losses
Your family members also cannot claim damages from your auto insurance company if you accidentally damage the family member's property. Say you accidentally bang into your spouse's car while backing out of your driveway. Your auto insurance company won't compensate for such damages.
Livery-Related Losses
Your personal insurance coverage only covers personal use of the car. Commuting to and from work, taking road trips, and going shopping are some of the private uses of cars. Damages that arise out of livery (business) use of the car are excluded. For example, if you decide to use your car as a delivery van and experience an accident, your insurance company won't settle the ensuing damages.
Losses Related To Illegal Activities
Insurance companies should follow the law and do not condone illegal behavior. You will not be compensated if you cause damages while using your car for illegal activities. Say you are involved in a collision while smuggling illegal products out of your state; the insurance company won't compensate you for the related damages.
Wear and Tear Damages
Lastly, your collision and comprehensive coverage also don't apply to wear and tear damages. Auto insurance only covers only accidental damages. Worn brake pads, worn belts or worn tires are all inevitable wear and tear that insurance doesn't cover.
As you can see, auto insurance covers a lot, but it doesn't cover everything. You need to understand what your policy covers and excludes so that you can know when to make a claim and when to service losses out of your own pocket. You may also be able to pay a little extra money to cover some of the exclusions (such as business-related losses). Be sure to contact an insurance company like Reinhardt's Insurance Agency for more information.
Do you remember the last time you experienced an accident or an injury? Life can surprise you sometimes, which is why it is always smart to have a few life insurance policies in place. I used to think about everything that I had and everything that I could lose, and it occurred to me that I couldn't risk taking any chances. I wanted to begin this blog to share my perspective with other people, so that you don't have to worry about finding the right insurance company. Read more here to figure out what you need to do to choose a better plan.