Gaps in your auto insurance can render your financial future bleak.
Auto insurance is a requirement in most states. Due to this, many motorists only opt for coverage that is absolutely necessary, meaning that they leave themselves, their passengers, vehicle, and finances vulnerable.
Gaps in an auto insurance policy are more common than you think. Before selecting a policy that fits within your budget or was the first one that you saw online, be sure to review your coverage (and lack thereof).
Here are a few typical coverages that many auto insurance policies exclude:
Which drivers and vehicles are covered by your auto insurance? Most policies provide coverage for you and your family members living with you. While your child who is living in a college dorm may be covered, your other child living in an off-campus apartment may be excluded from coverage.
If your convertible car is in storage and you decide to take it for a spin in the sun, always alert your insurer beforehand as your policy may only protect your car behind closed doors rather than on the open road.
Your electronic devices may not be covered for stolen or damaged cell phones or other devices. Should these items be stolen from your car, your home insurance may provide coverage.
Your own collision coverage may apply to the rental car you’re driving, but it may not cover all of the damages alleged by the rental company, such as loss of use charges. If you’re leasing a car long-term, your policy may only cover the replacement cost if the car is a total loss or is stolen. However, the amount may not cover the outstanding balance of your lease.