Comprehensive insurance policies are also called ‘All risks’. Both names can be a little bit misleading, as although comprehensive insurance does cover you against damage from fortuitous events, there are actually some exclusions from cover which you should know about. These exclusions can be found in the small print at the bottom of your policy, but in general people don’t read the small print on their policy. Therefore, we are going to highlight some of the most common exclusions.
As reported by Youi Car Insurance, not all of the money you claim will be paid by the insurance company, but most companies will insist on an ‘excess’ clausen which is an amount of money you should pay towards a claim. This was brought in so people should think before claiming. Should the accident be designated as someone else’s fault, you can claim back the excess from the culprit’s insurance company.
You should look at whether you have a ‘loss of use’ clause in your small print. Do you get a ‘courtesy’ car whilst it is being repaired? What
happens if your new car is written off, or even loses 50 or 60% of its value because of the accident? A good insurance policy will give you a new car in this case as long as your car was less than 12 months old. Remember that an insurer is paying to cover a fortuitous event. They won’t pay for wear and tear on your car, or any maintenance or servicing. This goes as far as instructing the garage to charge you should any repairs they perform after an accident be connected to maintenance or parts that you would normally replace during the car’s life (e.g. exhaust or tyres).
The next exclusion clause is related to deception. Should a thief deceive you into parting with your car for nothing you can’t claim. When buying a car be careful about the confidence trick of selling you a stolen car and then stealing it back once your money is in their hands. Since you did not obtain ‘title’ to the car you had no insurable interest so you can’t claim.
You are also not covered for depreciation that occurs to the car’s value simply due to it being involved in an accident. This tends to be more of a problem with high value models.
Find out how your audio and communication equipment is covered. This varies from insurer to insurer. Some will pay out the full amount, whilst others have limits. This is the same for many of your personal effects. Insurers will not cover you for valuables in the car, and usually have a $100 or $150 limit. Bear in mind that you can’t just claim for personal effects, it must be part of another claim.