Full coverage car insurance is designed to protect you and your vehicle in various situations, from minor accidents to theft and vandalism. However, many people are surprised to discover that standard auto insurance policies have significant limitations. Here are 13 scenarios that most basic policies won’t cover and how you can ensure you’re protected.
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Routine Maintenance Standard car insurance doesn’t cover routine maintenance like oil changes, tire rotations, or new air filters. Consider a prepaid maintenance plan from your dealership or a third-party provider to save money and know your costs in advance.
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Mechanical Breakdowns If your vehicle’s engine or transmission fails due to wear and tear, standard insurance won’t cover the repairs. A mechanical breakdown policy can provide coverage for parts and labor.
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Personal Belongings Comprehensive car insurance covers vehicle theft, but not personal items stolen from your car. Check if your homeowners or renters insurance covers personal property.
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Unlisted Drivers Any licensed driver living with you typically needs to be on your policy. If they’re excluded and cause an accident, damages won’t be covered.
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Roadside Assistance Most insurers charge extra for roadside assistance. Some providers, like Lemonade, offer it for free with their policies.
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Driving Outside the U.S. Your car insurance is generally valid across the U.S., but coverage varies when driving abroad. Check your provider’s international coverage.
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Ridesharing or Driving for Business Personal auto insurance may not cover you when driving for services like Uber or Lyft. Consider a ridesharing endorsement or commercial auto insurance.
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Rental Car Reimbursement Standard insurance won’t pay for a rental car if yours is being repaired. You can add rental car reimbursement to your policy.
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Custom Parts and Collector Cars Most policies have limited coverage for vehicle modifications. Consider supplemental coverage for custom parts or classic car insurance for collectibles.
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Pet Injuries Most car insurance won’t cover veterinary bills if your pet is injured in an accident. Pet insurance can help.
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Racing or Off-Roading Damages from racing or off-roading aren’t covered by standard insurance. Specialized insurance like Hagerty can provide coverage for collector vehicles.
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Losses Above Your Policy Limit If you’re liable for an accident exceeding your policy limit, you’ll need to pay the difference. Consider umbrella insurance for extra protection.
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The Balance on Your Car Loan If your vehicle is totaled and the insurance payout doesn’t cover your loan balance, gap insurance can cover the difference.
To ensure you’re fully protected, review your policy and consider additional coverage options. Companies like Geico, Progressive, and Allstate offer various add-ons and specialized insurance products to fill these gaps.
