Your car insurance is designed to protect you for events when things are out of your control. It should provide you with cover in case an uninsured driver hits you, or your car is trapped in a burning garage.
You might think that you are covered for all events, but – until you read the small prints on your policy – you cannot be sure. Below you will find the most common exemptions of car insurance policies that you must be aware of.
#1. Wear and Tear or Amortization
If you have a classic car which increases its value, you don’t have to worry about this exemption. However, if you bought your car for $16,000 and a year later it is only worth $11,000, your insurance will only take into consideration the current value.
This means that if you bought your car on credit, and it gets damaged beyond repair, you will be short of paying off your loan and getting the same car.
#2. Some Preventable Breakdowns
It is also important to check the policy for clauses about your maintenance requirements. If you fail to turn up for regular dealership checkups, even if they are included in your price, you will see your policy price increase, and your claims affected.
If your brakes fail, and there is evidence that it is caused by the lack of maintenance, your car insurance will not pay off. Make sure that you check out the different auto insurance policies to find out about your obligations.
#3. Roadside Assistance
Basic car insurance policies don’t cover you for roadside assistance, which means that if you get stuck in the middle of a country road in the winter, you need to arrange your own transport and recovery services, and get the car to the closest service station.
This might be fine if you are close to home, but if you are on a road trip, you might end up paying thousands of dollars, just because you don’t have roadside assistance included in your policy.
#4. Personal Injury Protection
Some policies offer you an option to upgrade to a personal injury protection. This means that you will automatically get a compensation.
However, if you don’t have this policy, you can still get in touch with a law firm for personal injury to see if you can have a claim. If you can prove that the accident wasn’t your fault, you can win thousands of dollars of compensation.
#5. Uninsured Drivers
It is more than likely that you will need to take out an extra cover to protect you from accidents caused by uninsured drivers. If the damage is caused by someone who has no or inadequate insurance, you will find it hard to get the cost of your car and medical treatment covered.
Talk to your insurance company about your options, to make sure you cover every event.
When taking out a car insurance, many people automatically choose the cheapest option.
Make sure you take your time to study the small print and exclusions, or you might be up for an unpleasant surprise when accidents or breakdowns happen.