1575 Pearl Rd Brunswick | 330.225.5605

Some drivers are unclear about what their auto insurance covers. In many cases, they only learn the answer after a claim is denied. You might have a gap in coverage of which you’re unaware. Here are a few incidents most people assume are covered when they’re usually not.

Payment for a Totaled Vehicle

Comprehensive and collision insurance covers most auto damage. Collision will repair your vehicle if you crash into another object or something hits your car. Comprehensive insurance will pay for non-collision related damage, such as vandalism. But if you total a vehicle before it’s paid in full, coverage won’t necessarily cover what you owe on your auto loan.

Your insurance company will provide a check equal to the vehicle’s market value. This coverage is minus your deductible. A car starts to depreciate as soon as it leaves the car lot. And thanks to depreciation, your car is possibly worth less than what you owe.

Say you owe $14,000 on your car loan. You total the car, and insurance pays a total of $10,000. The car is history, but you’re still responsible for the loan balance. Gap insurance is one way to avoid this pitfall. It pays the difference between the amount of your loan and what insurance pays.

Additional and Upgraded Equipment and Parts

If you have comprehensive coverage, then theft and vandalism are covered. That doesn’t include equipment or customization made to the vehicle. If the car is stolen or vandalized, then coverage doesn’t include any of your modifications.

Items such as stereo systems, custom rims, and high-performance exhaust systems count as modifications. Changes made to assist the disabled aren’t covered either. But some insurers offer optional policies specifically for customized equipment and parts.

General Repairs and Upkeep

Comprehensive and collision might pay for significant repairs, but general maintenance isn’t considered significant. Unless the warranty is still good, you’ll have to pay for these repairs out of pocket.

Auto repairs vary in price, but some are expensive. Repairing a broken cylinder can cost more than $5000. Transmission replacement can cost anywhere from $1000 up to $4000. But these repairs are wear and tear issues, and insurance doesn’t cover that.

Your insurer may offer an optional policy for general auto repairs. This type of plan is known as Mechanical Breakdown Insurance. Getting an extended warranty is an option as well.

Check Your Policy

You want to know what your auto insurance covers before you need it. The last thing you want is the shock of having an auto claim denied. Check to see what’s included in your coverage. Take steps to remedy any coverage gaps you discover.