What damages are not covered in car insurance?

What damages are not covered in car insurance?

Once car insurance is claimed many drivers are shocked and confused to learn that their insurance does not cover many aspects of the damages caused. It is therefore important to obtain a proper understanding of auto insurance before filing for one. You need to be very clear about what their policies cover to avoid future concerns.

How Does Car Insurance Work?

Whether you buy, lease, finance a car, it is mandatory to secure car insurance. In order to acquire car insurance, certain conditions and restrictions are to be followed. 

The driver should own a valid driving license issued by the government of the country.  Your prior driving records will be evaluated by the insurance company to determine eligibility and policy rates.Rates will vary if looking for a new insurance policy or if it is to renew an existing one. 

Types of Car Insurance

Comprehensive insurance: Does not pay for accidents caused or collisions. This coverage extends to repairing or replacing a vehicle damaged by natural causes like fire, falling objects, hail, flood hitting an animal and even theft.
Liability Insurance: If someone is injured in an accident and causes damage to property payment will be given on your behalf. It also pays for court costs and defence.
Collision Insurance: Covers payment for damages caused by accidents on public property and vehicle maintenance.

How Much Does Car Insurance Cost?

Many factors determine your car insurance cost. Few key factors that insurance companies take into consideration when calculating your car insurance premium include:

Type of car you own: Insurance premium is influenced by many factors such as the make, model, and year you purchased your car. These can determine the premium amount.Kind of vehicle usage: It measures the kilometres travelled using your car in a year.Type of your car usage, i.e whether it is for commercial purposesYour driving track records, which include: number of driving license years. Convictions caused like speeding tickets, a total number of accidents happened.The area where you live.Types of insurance coverages you choose for your car.Special discounts: Depending on the employment allowances of professionals.

Damages that are not covered in car insurance?

1. Theft

In situations where your car is stolen or deliberately ruined by someone, you will be able to claim only if you have comprehensive coverage. Unless you have insurance under comprehensive insurance you will not be paid for the recovery of the loss.

2. Any damage to your car

In situations where there is damage caused by an accident at your fault, your insurance will only cover the damages under collision coverage.

3. Damage from the elements

If your car is damaged by external natural forces such as weather or acts of nature or by an animal attack you will be paid for any damages only under comprehensive insurance

4. Damage to a rented car

If you rent a car and cause an accident, your policy will not apply to the rented vehicle damage, unless you have pre-purchased an endorsement.

5. Pain and suffering

Pain and suffering caused by collisions or accidents are not covered under any policy. Some situations cause physical damages that cannot be repaired which leads to emotional and psychological hardships. A negligence claim can be filed against the responsible party.

Other factors include:

If you plan to customize or modify the vehicle to alter its performance and change its appearance, insurance companies prefer to access the vehicle before deciding to whether insure itYour vehicle has survived unrepaired damage.If your vehicle is rented or leased to other peopleYour vehicle is used for racing or competitionPersonal belongings such as a mobile, bag or other accessories that get damaged inside a car in an accident or that get lost along with a stolen car are not covered under a car insurance policy.While upgrading your vehicle with big wheels, stereo systems or custom woofers make sure these will not be insured under an insurance policy.Damages to tires or tubes are excluded from insurance coverage.If your vehicle is not for personal uses and used for a commercial purpose like a cab under OLA or Uber, insurance coverage is not included.Driving and causing damage after drinking alcohol.When a car is given to someone  without a valid driving licenceDamages to the engine as a result of oil leakage

Make sure you understand everything before looking for an insurance policy, tell your agent what are your concerns and needs. All investments are generally appreciated, while vehicles lose their monetary value over time. Auto insurance can provide protection and certainty when something beyond your control impacts the vehicle. A knowledgeable insurance agent can prepare you and your loved ones for unexpected perils that lurk on the road.