Understanding What Your Auto Insurance Covers

Understanding What Your Auto Insurance Covers - Once you've purchased automobile insurance, you may not have the coverage you think. Millions of Americans have a false sense of security and believe no matter what happens to their vehicle their auto insurance will kick in to cover the bills. Unfortunately, many people are in for a rude awakening when they send through a claim at Progressive or State Farm only to have it denied. Below are four coverage issues you should know. Let's Know - Understanding Car Insurance Coverage | FAQs & Guide

Understanding What Your Auto Insurance Covers
Understanding What Your Auto Insurance Covers

Understanding What Your Auto Insurance Covers

Property Theft

Having only the mandatory minimum auto insurance in your state is not going to provide you any protection if your car gets stolen. What might surprise you is that even if you do opt for comprehensive coverage, not everything in your car is going to be protected by the policy. Here's an example: Say you have just purchased one of those GPS systems that can be mounted in your car instead of professionally installed. A few days later, someone breaks the window and steals the GPS. Even though the theft involved you car, your auto insurance can't cover it because the system was not a part of the car. However, you could file a claim with your renter's or homeowner's policy instead.

Acts of God

We've all heard that some types of insurance won't cover damage caused by so-called acts of God. This term refers to naturally occurring phenomenon, such as flooding or earthquakes. So some people don't realize that car damage caused by these types of events is usually covered under comprehensive polices, unless there are specific exclusions built into the policy. That means if flooding damages your car, you should receive reimbursement minus your deductible. However, it may not always be that easy. Some auto insurance companies may try to pin the blame on you, possibly because you didn't move the car to prevent the damage. That's one reason picking a trustworthy commercial company is so important.

Hit & Run Accidents

If you're the victim of a hit and run accident, you should first try to track down the driver who caused the accident and attempt to make him or her pay for all of the damages. The police and witnesses can help you do this. If that doesn't work, you can submit the claim to your insurance company. Uninsured motorist coverage will cover these claims if you have that type of policy (this type of coverage is mandatory in many states). Otherwise, you'll just have to submit the claim through your agent and pay the deductible. Sadly, going this route will also cause your insurance rates to increase.

Pet Injuries

More people are traveling with their pets today and, as a result, more pets are being injured in car accidents. If the accident is not your fault, any injury to your pet will be covered by the other driver's liability insurance because pets are considered property legally. However, if you are at fault, your insurance normally won't cover these expenses. Currently, Progressive does bundle pet coverage of up to $500 with its collision coverage. More auto insurance companies may follow suit.

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