What you don’t know about your auto insurance policy
When it comes to your auto insurance policy there are a lot of scenarios that your insurance company must consider when determining what should be included and excluded from your coverage. It’s important to know that coverage varies greatly depending on the policy and insurance laws in your state. Here are a few we’ve come across that could apply to your policy:
Burglary: So, we all know that if your vehicle is stolen you need comprehensive or ‘other than collision’ (OTC) coverage in order to be covered for the loss. However, many people falsely believe that if their car is burglarized for items such as iPods, GPS, or other items commonly kept in the car that these will be covered under their auto insurance policy. The truth is, typically no part of your car insurance policy offers coverage for theft of personal items. Your policy may cover items that are permanently attached to the car (installed stereo, speakers, etc.) however, an iPod or detachable GPS would not be covered. For a loss such as this, you would want to consult your homeowners insurance policy.
New Wheels: If you traded in your vehicle and are about to drive the new one off the lot- do you need to call your agent first to list your new vehicle on your policy? In many states a new vehicle is covered automatically if it replaces a previously covered vehicle, however, only for a short time period (sometimes 30 days) after initial purchase until you list it on your policy. If you fail to list the vehicle on your policy within that window of time you will be driving uninsured.
Territorial Limits: Taking a road trip to Cancun this Spring break to avoid airfare? Talk to you agent before taking your vehicle over the border as oftentimes coverage is excluded outside of the U.S.
Road Rage Doesn’t Pay: Many states will exclude bodily injury and property damage coverage in excess of the minimum limits required for accidents that were caused intentionally by, or at the direction of, the insured– AKA “road rage”.
May I?: Ever wonder when you lend your car out to your neighbor if they would be covered if they crashed it? Typically if someone gets into an accident while borrowing your car with your permission, they will be covered as an insured driver. However, if someone borrowed your car without your permission or stole your vehicle and experienced an accident- your policy would probably not cover it.
