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Those Hidden Car Insurance Coverages

This article isn’t just for someone getting car insurance for the first time, it’s for anyone paying for car insurance. By the time you finish reading this article, you should have a basic understanding of the types of auto insurance coverages available. You can then add or remove certain coverages to
your policy based on your needs.

Don’t you remember as you approached the legal age to drive, you heard, sometimes out loud, from your parents about how expensive car insurance was? If you have children who already drive or will drive soon, you have probably made this same comment to them. Most of us have felt terror in our hearts about what the insurance company might not cover. And especially, what would happen if you had an accident. What you’ve rarely heard of, though, are the little subtle provisions that could save you a LOT of money if you need it.

It really helps if you know the basic coverages that are in your auto insurance policy. For example, it is important to know that bodily injury and property lines are your RESPONSIBILITY to the other driver if you are found to be at fault. You will not charge anything under this coverage. And we all know that collision coverage is for your car if you damage it, minus the
deductible you have chosen to pay yourself. Comprehensive auto insurance basically covers what happens to your car while you are NOT driving it. But what about medical payments? The auto insurance company pays ONLY your medical bills,
if you are injured. BUT, it also covers you if you are injured near your car, on the way to your car, or from your car to your house.

Many states offer Personal Injury Protection (PIP), which pays for medical bills. But it also covers the ‘little’ things, like hiring someone to clean the house, cook, do the things you
he usually does, but now he can’t because of the accident he was in. In some states, you can even buy BOTH medical and PIP payments on the same auto insurance policy.

Who pays for the personal things you carry in your car? I can tell you from personal experience and from speaking with my insurance company recently, the auto insurance company will not pay for personal items in your car! Unless an item in your car can be considered an accessory, or something that is only used in the
vehicle, you will need to refer to your homeowners policy for reimbursement. However, I strongly recommend that you DO NOT call your homeowner’s insurance company unless you are SURE the loss is greater than your deductible. Believe me, sometimes it seems that insurance companies are making a list, checking
twice and then get as much of your paycheck as possible.

Why is it important to know what you don’t get with your auto insurance policy? Did you know that you can get a rental car when your car is in for repair after an accident? Well this is true, but only if you have ‘Rent Reimbursement’ on your policy. If you don’t have this coverage, you don’t get a rental car. A good insurance agent or company will point this out to
you, many times a telephone operator does not!

More and more cities are enacting ‘compulsory towing’ laws. If it breaks down in a high-traffic area, you’ll be towed whether you want it or not. And in most cities, you will be billed. So which country? If you selected ‘towing and labor’ coverage, your auto insurance company will. Otherwise, you will have to shell out the money yourself. That’s why I wear AAA. AAA provides free towing for a limited distance (usually to the nearest service station).

Let’s be honest. Car insurance is like exercise. Painful, but necessary. And if you don’t do your own homework, you may fall short because someone wanted to offer a low rate instead of making sure you were fully covered. Read what you are buying. Consider your options and what will happen without a particular car insurance coverage. So pray that you never have to use your insurance!