covers your car against risks like theft, accident, explosion etc.
Majority of car owners are eager to get affordable car insurance and are not fully aware of what their car insurance covers. It is very crucial that you know well what exactly is being covered by your car insurance otherwise you might lend yourself into deep trouble. For example, your regular car insurance is not responsible for paying the damages incurred in a rented car by you while you were out for a trip, so if an Accident occurs and you do not have rental car insurance then you have to pay for the damages from your pocket
So, it is important for you to know what car insurance does not cover
Bearing the complete cost of your car if it's totaled or stolen: If your car gets stolen or is rendered a total loss due to a huge collision, then you stand the chance of receiving the cash value of your car. As the insurance company will assess the cash value of your car, it might not meet your expectation and might be less than what you owe. Also, you need to confirm the policy’s Coverage for stolen car because it varies from company to company. The insurance company might deny your Claim for issues like inadequate security arrangements for the car or simply on the basis that you reported lately for the loss of the car.
Collision damage: If you happen to collide with another car (or a stationary object, such as a tree) due to your own fault, your regular car insurance will not cover damage caused due to such collisions. You will require additional collision coverage in order for your Insurer to compensate for your car repairs. If the accident occurs due to other driver's fault, his insurance will cover your car repairs costs, given that he has enough coverage.
Damage due to an animal or natural calamity: A comprehensive car insurance Policy takes care of damages to your car in circumstances other than a collision with another car or a stationary object. Even if you have a comprehensive coverage on your car insurance policy, you might not be covered for certain situations. Some insurers exclude the insurance coverage for impacts with animals. Similarly, there might also be limit or omission for certain natural calamities like a tornado, earthquake or flood. In these types of cases, the insurance company might impose restrictions on coverage.
Your Medical Bills: Unless you have an additional medical coverage on your car insurance policy, your insurance company is not liable to pay for your medical bill for any treatment that was required due to your car accident.
If you drive a car you don’t own and meet with an accident: If you are renting or driving your friend’s car you will not get the coverage from your car insurance company.
When someone else is driving your car meets with an accident: If you let your friend or family member drive your car, that person or even your car for that time might not be covered, based on the insurance company and the car insurance policy. Some insurance companies may cover any licensed driver you lend the car to, but again there might be restriction on the amount covered.
So, before you rush for affordable car insurance, it is important to know what all features are covered by it.