3 Commonly Ignored Car Insurance Policy Parts That Could Cost You
In your quest to purchase the cheapest, most reliable car insurance policy, don’t neglect to inform yourself about three commonly ignored car insurance policy parts whose omission from your attention could put you at high risk for sudden monetary loss. This coverage includes uninsured motorist (UM) and under-insured motorist (UIM), liability coverage exclusions, and policyholder due diligence duties.
Uninsured Motorists and Under-Insured Motorists
Uninsured motorist coverage provides you with monetary benefits in the event that you get into an accident with a motorist who does not have liability coverage on their vehicle. Under-insured motorist coverage provides you with monetary benefits when someone who hits your car does not have sufficient liability coverage to fully compensate you for your alleged injuries incurred from the accident.
Although UM and UIM are mandatory car insurance purchases in some states, in other states buying these policies is optional. Although not purchasing UM and UIM will lower your car insurance rates, what you might have to pay in the long run for not having this coverage could literally bankrupt you.
A wrecked, non-drivable car, piled-up doctor’s bills, and absent paychecks due to temporary, or even worse – permanent disability – are very likely scenarios you might find yourself in without UM and UIM coverage.
Liability Coverage Exclusions
The second of the three most commonly ignored car insurance policy options that you need to know about are liability coverage exclusions that could financially wipe you out or leave you with huge out-of-pocket expenses.
- First, if you do not give someone permission to drive your car and that person causes an accident, your auto insurance company can deny your claim. Learn more about a non-owners auto insurance policy.
- Second, if you, or another person you give permission to, intentionally causes a car accident, your auto insurance company can also deny your claim.
- Finally, if you use your personal vehicle to perform a business transaction, such as delivering a pizza or transporting people for money, you might violate the terms of your car insurance policy and forfeit your right to an otherwise credible accident claim.
Policyholder Due Diligence
Lastly, you must adhere to certain responsibilities when a claim or lawsuit is filed against you in the event that you cause an accident (known as an at-fault accident). Although your auto insurance company is required to provide you with an attorney and cover the associated legal expenses incurred, you have a role to play in the judicial process, also.
You must give copies of all of the legal papers you receive for the lawsuit or claim to your insurance company. You must also participate in all litigation proceedings deemed necessary by your car insurance company.
If you do not practice proper policyholder due diligence, your insurer can ultimately deny coverage for the claim or lawsuit on the grounds that you violated the terms of your policy’s contractual obligations.
Cheaper Car Insurance
Don’t wait another day to get the coverage you need to protect yourself and your family. Visit MyCarInsuranceRates.com, enter your zip code, and get free, immediate access to the best car insurance coverage, premiums and honest, informative, up-to-date articles on the ins and outs of the car insurance industry available on the Internet.
At MyCarInsuranceRates.com, we get you the best policy, so you get the best benefits. Enter your zip code to get free car insurance quotes to find the cheapest car insurance rates.
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