Auto insurance covers damage from vandalism, accidents and natural disasters. However, a policy may not cover everything one would expect it to cover, and these gaps can be costly. Below are several instances where a coverage gap can exist, along with a few tips on filling the gap.
Personal Belongings in the Vehicle
Comprehensive insurance covers the car if it’s vandalized or stolen, but it does not cover personal belongings left inside. A driver’s best bet is to prevent theft by putting belongings out of sight and locking the car’s doors. To fill the coverage gap, look to renters’ or homeowner’s insurance after a police report is filed. If the items’ value is less than the deductible, the driver must pay the full replacement cost.
Household Members Not Listed on the Policy
Standard auto insurance policies generally cover the driver and others who don’t live there but have permission to drive the car. Household members must be listed on the policy to be covered. To fill the hole, ask an automobile insurance service in Magnolia who’s covered, and be sure to list all licensed drivers in the household.
Auto Loans on Totaled Vehicles
Comprehensive and collision insurance don’t necessarily protect a driver who totals a financed car. In such cases, the insurer issues a check for the vehicle’s market value, minus the deductible. Due to depreciation, the payout could be significantly less than the amount owed. Gap insurance pays the outstanding loan balance, and it is often required on leased vehicles.
Custom Equipment and Parts
If the car is stolen or damaged, insurance will not cover custom equipment and parts such as stereo equipment, custom interiors, custom paint, performance enhancements and disability aids. To fill gaps, many insurers offer optional custom parts coverage.
Business Use
Standard personal policies from an automobile insurance service in Magnolia cover one’s daily commute, but they don’t cover business uses. Transporting people and delivering products are specifically excluded under personal policies. If a person uses his or her car for work, they can ask the employer how much coverage they have. The self-employed can ask about commercial auto insurance. Visit us to find out how to fill insurance coverage gaps today.
