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Things That Are Not Covered In Cheap Auto Insurance Collision Policies?

Some consumers who have auto insurance mistakenly think that certain things are covered under their policy but are really not. Having cheap car insurance sometimes means that not everything that you think will be covered. If you have not read through the specifics of your policy or are confused as to what certain terms mean, now is the time to figure out what is covered and what is not. It is important to know in the start than to question later on when it is too late.

Most of us have the minimal auto insurance that is required by law. Compulsory auto insurance laws are being imposed in almost every state. Collision insurance covers the individual in the case of an accident where you sustain property damage or bodily injury. Unfortunately, there are many things that are not included in that coverage. Taking a good look at what your insurance covers and what it doesn’t can be a real eye opener.

AutoInsuranceCollision insurance in most cases will not cover any damage that is not a result of an accident. That means that if you should have damage that is not related to an accident such as flooding, fire, theft or vandalism, it is not coverable through your policy. These things are being covered through a separate policy called comprehensive coverage.

To have many things covered when you get a less expensive policy, you may need to add additional policies. Sounds crazy, but getting auto insurance is like ordering food a la carte. You think that it should just come with the price of collision insurance but it does not. Sometimes, it takes investing in something like comprehensive coverage to get all the extras that you assume is covered.

If you should have an accident where your car is either in need of extensive repair or needs to be replaced all together, you will most likely need a rental car. Under most policies, the cost of a rental car is not included in the collision insurance. You must take out a separate policy to have it covered. There are additional riders that you can add to your policy that will pick up the additional cost if you should need a rental in the interim.

Another thing that may not be covered includes being hit by an uninsured driver. If you are hit by someone who does not have insurance, then your insurance will pick up the cost but only after a deductible is met. The deductible, in some cases can be substantial. Adding coverage for uninsured drivers is something that you may want to consider.

You may assume that if you are in a car accident and your car is severely damaged to the point where it should need to be replaced, the things within the car are covered under collision insurance. The fact is that although the car itself is covered, the things inside the car are not. Meaning, all those expensive things that we carry like smart phones or laptops will not be covered in the price to replace which leaves you to pick up the additional expense. In order to have the things in your car covered, you need to take out a separate “personal property” policy to insure the contents of the car.

If your car should be involved in a car crash, there may be a difference between what the car is worth and what you owe on the car. The difference to pay off the amount of the loan will be your responsibility. When you drive a new car off of the lot, you are already losing money. The amount of the loan on a new car or leased car does not increase but the equity of what it is worth does. That means that if you should need to replace the car in an accident, the cost of the amount you owe may be greater than what the auto insurance company will give to you. You can take out an additional policy called a “loan/lease” which will cover you if this should happen. Although it is not recommended if you have an older car, it is worth it for a car you owe money on.

Another expense that you might wrongly assume is covered under your policy is tow insurance. There is an additional fee that you can add to get tow insurance included in your policy and it is very affordable. It is something that you may want to consider adding. Being stranded in a strange place can not only be scary but it is costly without an insurance to cover your car if anything should happen to it.

These are all things that you probably assume included in your current coverage but are really not. Taking a second look at your policy specifications is always a good idea. Most importantly, comparison shopping for the best coverage at the lowest price is always a good idea to save some money. Input your zip code into the box provided to receive your free rate quote. Insuring that you are getting the best rate for the best insurance is as easy as filling out the information. Don’t waste another day overpaying on your auto insurance premium. Finding cheap auto insurance is a good deal but making sure that coverage covers all that you need is even more important.