Quantcast
Channel: Insurance
Viewing all articles
Browse latest Browse all 966

5 surprising things your car insurance won't cover

$
0
0

driving car

Car insurance can cover damage from accidents, vandalism and even meteor strikes. But no matter how good your car insurance policy is, it might not cover everything you think it does. And unexpected holes in coverage can cost you.

Here are a few of those gaps, along with tips for how to cover them.

Compare car insurance quotes with NerdWallet's Car Insurance Comparison Tool.

 

SEE ALSO: 'Blackish' star Anthony Anderson explains why everyone should have an underused type of insurance

1. Personal belongings in your car.

Comprehensive auto insurance covers your car if it's stolen or vandalized, but not the items you leave inside. After a smash-and-grab break-in, for instance, comprehensive coverage would pay to repair your broken window — minus the deductible — but wouldn't reimburse you for the contents of the shopping bags swiped from the back seat.

Your best bet is to prevent theft by always locking your car and putting any belongings, especially navigation systems and other valuables, in the trunk or out of sight, the National Insurance Crime Bureau advises.

Coverage to fill the hole: Your homeowners or renters insurance will cover items stolen from your car, provided you file a police report. If the value of the items is less than your deductible, you'll have to pay the full cost of replacement.



2. People who live with you but aren't listed on the policy.

A standard car insurance policy generally covers you and other people who don't live with you and who have permission to use your car occasionally. Members of your household must be listed on your car insurance policy to have coverage.

Coverage to fill the hole: Ask your insurance agent who has coverage when driving your vehicle. You'll likely need to list all members of your household who have driver's licenses, including roommates, on your policy.



3. Your car loan, if your vehicle is totaled.

Having collision and comprehensive insurance doesn't necessarily mean you're in the clear if you total a financed car. In that case, the insurance company will issue a check for the car's market value, minus your deductible. Because of depreciation, the payout could be lower than the amount you owe on the car loan. This is most likely if you made a small down payment and have made three years or fewer of payments on the loan.

Coverage to fill the hole: Gap insurance pays the difference between your insurance claim check and the outstanding loan balance. You can buy a policy through your car insurance agent or an insurance company representative.

You might be required to have gap insurance if you lease a car. The car dealer usually provides the coverage, and the cost is included in your lease.



See the rest of the story at Business Insider

Viewing all articles
Browse latest Browse all 966

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>