Does Your Auto Insurance Really Cover it All?
Many of us fail to read the small print or dozens of pages laying out what your car insurance will and will not cover. This leaves many of us with a false sense of safety that when something happens to our cars, we will be taken care of. But what exactly will your insurance cover? Or better yet, what won’t it cover? Here are some situations where you may not be able to depend on your car insurance:
1.The Big Pay Off
We never want to think of our beloved cars being totaled. And if it gets stolen, taken for a joy ride, and crashed by the thieves, we would like to believe we are covered. This may not always be true. If you don’t have gap coverage, you may be buying your new car yourself. And if it is your fault it was stolen, like leaving your keys in it, don’t expect your insurance company to pay you off.
2.You’re a Bad Driver
Sometimes we just have a bad year. If your year yielded more accidents than you ever had, you may want to be very careful, if you are found to be at fault, you can expect your car insurance company to cut you off. Tallying more than 4 accidents makes you a bad driver and the 5th accident may be the straw that breaks your insurance’s back.
3.You Were Drunk
If you were involved in an accident and convicted of DUI, expect your insurance company to drop you. Many insurance companies have a 0 tolerance policy for those driving while under the influence, as they should. It is not only a danger for you, it is a danger for everyone on the road.
4.You Forgot to Pay
There are a few options when paying for your insurance. Either you can pay month to month or take advantage of their discounts and pay your entire policy upfront. Either way, you never want to forget to pay. Driving with lapsed insurance won’t cover any accidents that occur while uninsured. Be sure your insurance company has your updated contact information and keep track of when your policy ends. Many states require auto insurance if you own a car. Failure to keep it may result in your license being suspended.
5.Moving Violations
Moving violations, and others, are a normal part of driving. It’s unusual to find people that have received at least one speeding ticket in their lifetime. If, however, you have a lead foot and lack the good sense to avoid speed traps, your insurance company may drop you. Once you’re dropped, you’ll be paying a pretty penny for someone else to pick you up. While you don’t have to worry about being dropped for a single speeding ticket, earning more than three in a year may see your rates increased. Even more and you may be completely dropped from your carrier.
6.No License
If your license does get suspended, even after you have gotten coverage, don’t get in an accident. Not only will the police fine you, but your insurance company won’t pay for repairs if you were not allowed behind the wheel. Many people who get caught are the ones who think they won’t. If your license is suspended, just don’t drive. Contact the courts to find out what you need to do in order to get it back.
7.Dragging Your Feet
If you are involved in an accident, call the police and your insurance company right away. If you wait too long, your insurance company may deny your claim. If you are injured, have someone contact your insurance company for you. Your insurance agent can help you get through the accident and explain the step by step process.
Insurance policies offer a sense of security in the event of an accident. However, your insurance company won’t pay out every claim. The best thing that you can do is to practice safe driving and find out what your insurance really covers. For more information on auto insurance, visit Kanetix.ca.
Daniel Watson is an avid blogger. You can follow him at @daniel_w2012.
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Category: Car Insurance
