But I Have Insurance

When you sign an application for insurance coverage (auto, home, etc), you are signing a contract.  The “do’s and don’ts, who does and who doesn’ts” of the contract are spelled out in the insurance policy.

I understand not reading the insurance policy when you receive it.  There are people in the industry, even selling the coverage, who haven’t read the policy.  I say I understand, but the claims adjuster doesn’t when someone tries to float through a claim in a situation that, according to the auto policy, is not covered.  Below is a short list (not conclusive, but it will get you started) of some things and situations that MIGHT NOT be covered under a standard personal (not commercial) auto insurance policy:

  1. Pizza delivery, any delivery using your personal auto IS NOT COVERED. Under your personal auto policy, if you are delivering your  pizza, flowers, newspapers, gift baskets, and you cause an accident, your auto insurance will not handle your claim.  There is a possibility that, knowing you are using your car this way, they cancel your policy.  Your policy specifically excludes coverage when the auto is being used as a delivery vehicle.
  2. Racing, rally racing, speed racing………racing………is not covered.  The accident you cause while racing….hitting three other vehicles, critically injuring two of the three drivers and killing the third, is not covered.  Oh, and your policy is cancelled.
  3. When you lend your car.  Actually, this is covered as long as the car was lent and not stolen.  But you as the car owner need to understand that, if the borrower causes an accident, your policy will be the first to cover them and whatever happened will be on your insurance “record”.  If you lent your car to someone who caused an accident and you later found they had a suspended license, this could reflect poorly on your decision making and might result in your insurance company cancelling you.  Be careful.

As long as your application is approved, your insurance paid for and you drive your car legally and within the stipulations of your policy, the company is there to help when you need it.  You just need to understand in what situations they will help and what situations you might end up shooting yourself in the foot.

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