Car Insurance is a sake to safeguard your beloved car. Nevertheless, this mandatory thing may get you in trouble when signed blindly having not told about exclusions in its cover. Knowing a minute details pertaining to your very own car insurance is highly advisable. Undoubtedly, irrespective of type of insurance, reading all the terms and conditions mentioned in the policy documents, inclusions, exclusions & cover is highly advisable. While exploring car insurance before purchasing it, one will come across following things or exclusions which car insurance doesn’t cover.
Actual cash value of your car will be paid off in case of total loss to your car or getting stolen. This payment is made presuming that you carry comprehensive and collision coverage on your car policy . If the car is stolen, claim doesn’t get accepted without a proper police report. However, this gets extended to claim denial for your carelessness towards car’s safety such as leaving keys in the car with running engine and going into a store or lend your car to someone who doesn’t return it.
Always make sure that your car insurance includes collision cover as well. It helps you to pay your car repairs out of collision during accident. Having this collision coverage is extremely important when you are at car loan or the car is leased. Surprisingly, some comprehensive car insurance plans don’t cover certain situations like collision with animals or any harm to car from animals and natural calamities like tornado, earthquake or flood. There must be different clauses added by insurers for people living in different geographical vicinities and have been continuously undergoing ‘acts of gods’.
‘Business Use’ coverage is one of the trickiest things in your car insurance. Your car insurance safeguards your car on regular commute from your home to workplace but if the car is harmed or damaged when in use other than your office work or at any other way, the repairs or expenses won’t be paid off. This is the most essential coverage for businessmen and employees who regularly use their cars to reach the workplace. Neither your insurance will pay your medical bills if you don’t hold medical coverage in your car insurance. You will only get paid off when another driver is at fault in accident. In such case, other driver’s insurance can take the responsibilities of your medication through third party liability coverage.
You are not covered either while driving someone else’s car. Your insurance policy simply rejects your claim while in accident driving a car which is rented or not owned by you. These policies cover the accidents with household cars only. You need to take extra cover for this. On the other hand, insurers refuse to pay the repairs for your car out of accident when someone else drives your car. Sometimes, things stolen from your car are not covered in your plan either. Aftermarket accessories or modification and addition of accessories in your car don’t get covered in some car insurance. Insured needs to report to insurer pertaining to any modification in your car to get it covered with extra coverage if worth required.
These are some essential things buyers need to understand and crosscheck while buying car insurance for beloved vehicle.