What Is Covered And What Is Not Covered In A Standard Car Insurance Policy?

The primary coverage details are what most people think about when they read about a car insurance policy or call an insurance agent. Your insurance declaration page is usually located on the cover sheet of your car insurance policy. It’s the first area that you should search for the basic facts of your coverage. It contains:

What is covered?

In general, however, a basic policy covers the minimum that is required by law.  For instance, New Hampshire will require you to have sr22 insurance New Hampshire to get back on the road after a major violation. Beyond this, there is usually some chance that your insurer may have to pay for something that you did not have to spend money on in the first place.

1. Liability for bodily injury

The policy will cover any medical bills incurred due to being injured in a wreck that you are involved in. The other two categories that are covered are personal property and bodily injury.

When you buy a car, the finance company will include the standard personal injury clause in the contract required by law. The bodily injury clause will ensure that you are paid for any physical injuries you sustained during an accident.

2. Physical Damage to Your Vehicle

What is covered in a collision policy is the physical damage to your vehicle. Most companies require you to have this type of coverage, as it is required by law. Even if you do not have this coverage, you may still be responsible for other expenses resulting from an accident.

This is why it is essential to read over your policy to ensure that you are covered if something else happens. Many people are unaware that the contents of their vehicle can also be covered in this section.

Your windshield and the dashboard are two examples of items that may be covered. Your seats and pillows are usually not covered in a policy, but these can be covered in a supplement. Contents like your music system and GPS can be added to the policy for an additional fee. This is something to look into very closely if you plan on driving with these items.

Insurance companies often work with a network of approved windshield replacement service providers like Gary’s Winshield Inc to streamline the claims process.

3. Property Damage

Liability covers the damages that you are held responsible for property damage that may occur during an accident. This usually refers to damage to another person’s vehicle. Still, it can also refer to damage to light posts, telephone poles, fences, buildings, or other objects that your vehicle collided with. The comprehensive part of a policy is where you will find all of the additional items covered under the policy’s liability portion.

What is Not Covered:

Most people don’t read the fine print. The few who do, discover that most basic insurance policies don’t cover the following:

1. Wear and Tear

A regular plan does not cover loss due to the car’s natural wear and tear. This is why, at the time of policy renewal, your car’s insured value (officially known as the Insured Declared Value (IDV)) is reduced to account for depreciation.

Any mechanical failures. This includes the engine breaking down, the transmission failing, or even the timing belt bucking. When you find that you can get a quote that does include wear and tear, it may only be for the limited purpose of repairing.

Or you are replacing your vehicle after an accident or flood without having to pay for the total replacement cost. By doing so, the insurance provider is excluding the value loss, which your automobile has already experienced over the years due to natural wear and tear.

2. Vandalism

What is not covered in a basic policy will also exclude coverage for some types of property that you may choose to park on your land. This would include things like broken windows and things of that nature. This is a vital part of what is not covered in a basic policy. Because if you get into an accident where there are damages. There is no way that your insurance company is ever going to pay for these damages.

3. Roadside Assistance

While roadside assistance can be helpful, it is not usually included in most basic liability car insurance policies. Even if you think you will use it. On-the-road breakdown scenarios such as a tire puncture, battery jump-start, emergency fuel, and so on are covered by roadside assistance. In most of these situations, you will be required to pay out of pocket.

Conclusion

The whole point of the declarations page is to let you know, specifically, what your vehicle is covered for. The reliable car insurance provider may have specific instructions and requirements for you to read. It is vital to read and make sure you understand. Some companies require that you read through the document if you are changing vehicle insurance companies. The good thing is that most vehicle insurance companies have online versions for easier searching.