Three Things Even Comprehensive Auto Insurance Won’t Cover

There is a misconception that comprehensive car insurance covers "everything." Unfortunately, there are some car-related losses that even comprehensive car insurance won't cover. It's good to know what these losses are so that you can buy appropriate coverage for them. Here are five examples of such losses:

Personal Belongings

Don't expect your insurer to come to your rescue if your personal belongings are stolen or damaged in your car. Car insurance covers things permanently attached to your cars, such as side mirrors and radios. For example, if you get out of a retail store and find that your car has been broken into in the parking lot, the insurer will only pay for damage to your car. So if the thieves have made away with your radio, you can expect your insurer to foot the bill for its replacement. However, don't expect your rare painting (that you inconveniently left in the back seat) to be replaced by your insurer.

Negative Equity on the Car If It Is Totaled

The equity is the difference between what you owe on the car and what the car is worth. For example, if the car has depreciated to the point where it's worth 12,000, but you still owe $15,000 on it, then you have a negative equity worth $3,000 on the car. The lender will expect you to clear the loan even if the car is totaled in an accident. However, your insurer won't foot this bill even if you have comprehensive insurance; it will only pay for the actual worth of the car at the time of the accident.

Custom Car Parts

Lastly, you shouldn't expect your comprehensive coverage to pay for your custom car parts if the parts are stolen or damaged. Standard auto insurance only covers the car in its stock state; this means if the car is damaged and has to be repaired, the insurance company will only pay for the same parts that the car manufacturer used on the cars. Therefore, if you replaced the aluminum rims with gold-plated ones, don't expect the insurer to pay you for the expensive metal if the rims are damaged. The insurer will only pay you for the aluminum rims since they were the ones used by the manufacturer.

As you can see, you shouldn't assume that your comprehensive car insurance will pay for all losses your car might experience. Talk to your insurance agent for further information on what your comprehensive coverage will not pay for. You can also ask the agent for other forms of coverage that may plug these gaps in coverage left by your comprehensive coverage. For more information, contact an insurance company like Stanger Insurance.