Whether you are leasing or buying a car, one thing you must buy is auto insurance. But because of the excitement of buying a new ride, you may not be too keen to read your policy document. This mishap may not cause a problem immediately but might be costly when involved in an accident. At The Insurance Outfit of Chester, NJ, we would like to inform you about common auto insurance exclusions to ensure you don’t get surprises when filing a claim.
Is the engine of your car failing you? Or perhaps the transmission is jerking incessantly? If the mechanical breakdown doesn’t result from damage suffered during an accident, car insurance won’t cover it.
This is pretty obvious, but we will still say it because it happens. You can’t intentionally crash your car against another car during a road rage and expect compensation from your insurer. Similarly, if an experimental paint job goes wrong, you can’t run to your insurer for compensation.
Personal property exclusion
Suppose you are involved in an accident, and your laptop becomes damaged. Your car insurance policy will cover the damage to your car but not the damage to the laptop. Similarly, if personal items are stolen when inside your car, auto insurance won’t cover them. However, you can get compensation if you have renter’s insurance.
Commercial use exclusion
If you use your personal vehicle for commercial reasons, you may not be compensated for damages if an accident occurs while running business operations. For this reason, it would be best to invest in commercial auto insurance to avoid undergoing such a predicament.
Racing might be your thing, but know that typical car insurance won’t cover you for damages and injuries sustained in racing events.
Want to learn more about auto insurance? Would you please get in touch with The Insurance Outfit of Chester, NJ?