Things Your Car Insurance May Not Cover

Are you getting ready for a road trip? It is time to review your auto insurance. Even if you’re not, you should really take a moment to refresh yourself on what is covered in the event of an accident and, more importantly, what is not.

Unless they have additional insurance to offer, a salesperson never tells you what is not covered. And that list can be surprisingly long. Most people don’t realize what is not covered until they have a claim.

This is especially true if you have some type of discount insurance. There is nothing wrong with discount insurance in principle. In fact, there are some pretty good options out there. In fact, you might opt for car insurance for drivers who don’t drive much. One of the most common questions is “does car insurance cover storm damage?” Not typically, no. But many assume that it does. For that, you need comprehensive insurance over standard discount insurance.

Just be aware that the discount insurance for light drivers may have fewer features than premium insurance at the highest rate. As with so many things, you get what you pay for. Here is a brief look at a few things you are very likely not covered for in an accident:

Lost Wages

Exactly how long were you planning to milk that whiplash injury? After a week, that is exactly what your boss will be wondering. Perhaps you haven’t been at your job very long. You have used up your two sick days. And that job represents the only income in the house.

Under such circumstances, you will be tempted to go back to work sooner than you are ready. You have pressure from all sides: your doctor, your boss, and your creditors. Doing the right thing for yourself hardly enters into the picture.

It is about that time you realize there is no relief coming from your insurance company. That is because lost wages are generally not covered.

When someone else’s carelessness has cost you your wages, hiring an auto accident attorney is the best way to get compensated. If you have been in a recent accident only to discover that lost wages were not covered, it is probably not too late to call an attorney and at least get a free consultation.

Personal Belongings

The car stereo that shipped with your car may be covered. But the iPod you had attached to it that flew out of the window is probably not. A look at the Massachusetts auto insurance guidelines will give you a pretty good idea of what to expect from basic auto insurance.

You will notice that there is a provision for damage to someone else’s property. There is a lot to be unpacked in those few simple words. First, that $5,000 is going to the car that has been damaged. Second, it does not apply if the driver of the other car is not properly insured. Third, this only is a consideration if the other properly insured driver is at fault.

This also does not cover the even more likely circumstance of something being stolen from your vehicle. Even that may depend on whether it was something installed in the car vs. something that was in the back seat.

There are special riders you can get for some of this coverage. Be sure to ask very specific questions about what is and is not covered under personal belongings.

Your Car Loan

If your car is totaled in an accident, your standard insurance is probably not enough to cover the entire loan. Insurance will pay you the market value for your vehicle which will probably be considerably less than what you have financed. If you pass that on to the finance company, you will still be on the hook for the balance.

You will have to pay this balance on top of whatever payments you make for a replacement vehicle. This is the situation many people find themselves in shortly after a serious accident.

Fortunately, you can get what is called gap insurance that covers the gap between the market value of your car and what you owe. It is extremely difficult to make payments on a vehicle you no longer have.

Lost wages, personal belongings, and the car loan are just the beginning of what your insurance probably does not cover. Be sure to call your insurance company before your next road trip.