10 Events Won't Be Covered By Auto Insurance

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02 May

The standard car insurance policy covers a host of events like accidents, damages from a natural disaster, and even vandalism. However, there are certain events and things that are not usually covered. As a car owner, you must be aware of such circumstances before you go for insurance repairs so that you can save yourself some hassle. Some of these events or things are avoidable and thus having knowledge about them can prevent you from making costly mistakes.

Tropical Chevrolet Collision Center is a Miami nationwide collision repair center and we bring to you this comprehensive list of 10 events that will usually not be covered by your auto insurance. Read on to learn more!

When An Unapproved Driver Drives Your Car

If your roommate drives your car and gets into a fender bender, your insurance policy will not cover for the damages unless the person is included in the policy. Hence, it is important that you include any person who lives with you and often uses your vehicle in your auto insurance policy. Else, chances are high your insurance will not cover an accident caused by them.

2. Driving While Doing An Illegal Activity

In case you get into an accident while your license has expired or you were under the influence of any drug or alcohol, your auto insurance will not cover the incident. Partaking in illegal activities while driving is not only dangerous but also can cost you a lot in terms of the insurance.

3. Accident Not Reported On Time

Your car insurance policy will have a specific time limit (usually 30 days) during which you need to report any accidents. Failure to do so allows the insurance company to deny your claim. It is thus essential to know all the conditions mentioned in your policy before you sign it.

4. Accidents Caused While Racing

Racing is another thing that can prevent you from getting your insurance coverage. Claims for accidents that occur during racing are usually denied by insurance companies.

5. Theft Of Personal Belongings

Auto insurance has your back covered when your vehicle or standard vehicle parts are stolen. However, it does not cover the theft of your personal belongings like a purse, bag, wallet, or other valuables that you might have left in your car.

In case of your personal valuable items being stolen from your car, you can file a claim with your homeowner’s or renter’s insurance company. Even then, the claim makes sense only if the value of the stolen item exceeds your deductible. The best practice to avoid this kind of situation is to refrain from leaving your valuables in your car.

6. Custom Fitted Auto Parts

Auto insurance companies consider those custom parts like a flashy rim or the spanky DVD player or enhancements like customized leather seats as personal belongings. Hence, these items are not covered under the standard policy.

The best way to tackle this event if your vehicle has these custom parts is to get supplemental insurance to cover additional auto parts.

7. Car Loan When Your Vehicle Is Totaled

Your collision insurance will not cover your entire car loan in case you total your financed car. Usually, in such a scenario, your insurance company will hand you a check for the market value of your car, minus the deductible. Now, because of depreciation, the amount you receive can be much lesser than the loan amount you owe. This is especially plausible if you make a lower down payment on your vehicle and have just started repaying your loan.

In this case, you can go for gap insurance that basically takes care of the difference in the amount between the claim check and the loan amount owed.

8. Your Side Business

According to the Insurance Information Institute, the standard auto insurance does not cover any damages faced while using your car for commercial purposes. Hence, if you use your personal vehicle for delivering things commercially (like pizza delivery) or transport people around (Uber or Lyft) then you will need supplemental insurance for total coverage.

9. Normal Wear And Tear Or Deliberate Damages

  • Any damage due to wear and tear with use over a prolonged period. These are considered to be normal in the lifecycle of any vehicle.
  • Any mechanical breakdowns that occur due to everyday usage. The insurance covers damages but not failures
  • Any deliberate damage to the vehicle is also not covered. Insurance companies do this in order to prevent any scams where people can claim a new part after deliberately damaging one.

Driving Outside The Country

Auto insurance coverages are issued for a particular country only. Hence, if you drive your vehicle outside the United States to say Canada or Mexico and face an accident or issue, insurance will not cover it. It could be an otherwise claimable event but since the vehicle is out of coverage area, it will be denied.

While driving your personal vehicle out of the country, it is prudent to opt for additional insurance coverage for this reason.

Miami Nationwide Collision Repair

Knowing and understanding the fine print in your personal auto insurance policy is necessary and can help you out in sticky situations. You can be better prepared for common incidents. Also, when you are aware of the events or things that aren’t covered under your policy, you can definitely prevent some mistakes altogether.

If you are looking for a Miami nationwide authorized shop for addressing your insurance repair needs, then the Tropical Chevrolet Collision Center is your best choice. We take care of all kinds of insurance repairs at our center and cater to the specific needs of our customers.

As mentioned, we are your go-to auto body shop center in Miami. Do not hesitate to contact us for your auto repair needs. You can also give us a call at (305) 908-5548. Alternatively, you can schedule an appointment at your convenience here.