What Auto Insurance Does and Does Not Cover

Confused about what exactly your auto insurance policy covers and does not cover? You are not alone. According to BankRate, a survey conducted in 2010 by the National Association of Insurance Commissioners showed that about half of Americans do not know basic facts about auto insurance. This survey also found that only 45 percent of Americans feel confident making decisions about it. Our agents at Elite Insurance Solutions can answer your questions about what your auto insurance policy does and does not cover, and we would like to share with you some facts you should know to determine how well your automobile is covered.



Consumers have been confused on whether or not they should add rental car insurance when renting a car. Your regular auto insurance policy should cover any damage to the rental car if you have an accident; however, the rental company can also charge you for loss of use as well as for 45 days of using that vehicle. Neither of these are covered by your regular policy.


The FBI claims that more than 2,000 vehicles are stolen every day in this country. If you have comprehensive auto insurance, you will be compensated for your car but not any items that were in your car at the time of the theft. If your laptop was in your car when it was stolen, you will not be compensated by auto insurance.


While most auto insurance policies will cover losses that occur if you loan your car to a friend, you are not covered if you loan your vehicle to someone who lives with you. Typically, insurance companies only provide coverage for drivers listed on the policy and those outside the driver’s home who borrow the automobile. According to Gary Massey, Jr., an attorney from Massey & Associates, PC in Chattanooga, TN, “A person who lives in your house might drive your car all the time, and it significantly increases your risk of that person wrecking your car. A person who doesn’t live with you is probably not going to borrow your car enough to affect the overall risk calculation.”


If an accident is your fault, your car will be covered by your insurance policy; however, if this accident involves an uninsured motorist, you could be in trouble. According to Massey, Jr., “Everybody needs uninsured motorist coverage, and they need it to their same policy limits as their liability coverage.”

Have more questions about exactly what your auto insurance covers? Contact our agents at Elite Insurance Solutions to find out more about your coverage.

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