Does car insurance cover injuries?

No, traditional car insurance does not cover ordinary repairs or maintenance to your car. If your car is covered by comprehensive insurance, your insurance company will cover mechanical repairs caused by a car accident, natural disasters, or other unforeseeable events.

Insurance companies do offer a type of coverage that policy holders can use for repairs. This coverage is called ... read full answermechanical breakdown insurance (MBI), or repair insurance. MBI is offered by some insurance companies and comes with a deductible. MBI deductibles tend to be low, and in the event your car needs major mechanical repairs, this type of coverage could save you thousands of dollars. It usually covers repairs to your vehicle’s engine, drivetrain, transmission, brakes, exhaust and power system.

With many policies, MBI coverage cannot be used for car maintenance, or for tire replacement, coolant replacement or other minor repairs. It’s also important to keep in mind that some insurance companies that offer MBI only do so for newer models and vehicles under a certain mileage.

If you’re considering purchasing MBI coverage, it’s a good idea to carefully read the provider’s policy in order to understand required qualifications for and limitations of the offered coverage.

Yes, comprehensive insurance covers theft. Comprehensive auto insurance coverage will pay to replace a stolen car, repair damage done by thieves, or replace stolen parts, though it will not cover personal possessions stolen from inside a vehicle. It usually won’t pay to repair or replace custom parts or other equipment added by the driver, either.... read full answer

Comprehensive coverage, which pays for non-accident damage resulting from things like natural disasters and theft/vandalism, is limited to the actual cash value (ACV) of a vehicle, minus the policyholder’s deductible. Comprehensive deductibles often range from $500 to $1,500.

To receive a comprehensive insurance payout for theft, drivers should immediately file a police report and then include a copy when they file a claim with their insurance company.

Car insurance does not cover intentional damage, general maintenance, or damage caused by normal wear and tear. Minimum car insurance coverage does not cover the policyholder’s injuries or vehicle damage, either, only providing liability insurance to pay for injuries and property damage caused to others.

However, exact coverage exclusions vary between policies. In addition, insurance companies offer extra policy add-ons that can protect you in situations that don’t fall under minimum car insurance coverage.... read full answer

What Car Insurance Never Covers

• Damage caused by normal wear and tear
• Intentional damage (sometimes including DUI)
• General maintenance
• Damage that exceeds the limits of your liability policy
• Personal belongings stolen from your car

What Car Insurance Does Not Cover Normally

Custom parts and equipment

Liability, comprehensive and collision car insurance do not cover customized parts and equipment, such as undercarriage lighting or third-party sound systems. However, some insurance companies offer add-on coverage to protect those types of things.

Your Car Loan or Lease If Your Vehicle is Totaled

Even if you owe your lender more than your car is worth when it’s totaled or stolen, your insurance company will only cover the replacement cost of the vehicle. Gap insurance is a policy option that covers the dollar-amount “gap” between what a car is worth and what is owed on the loan.

Driving Your Car for Rideshare or Delivery

If you’re driving your car as a way to make money, then your personal insurance policy might not cover you if you’re involved in a wreck on the job. While ridesharing and food delivery companies often offer insurance for their drivers, you can also purchase rideshare insurance for extra protection.

Mechanical Breakdowns

If you experience an engine or transmission failure on the road, your insurance policy won’t usually cover the cost of fixing it. But as a precaution, you can purchase mechanical breakdown insurance, which is similar to an extended warranty from a car manufacturer.

Before purchasing car insurance, it’s important to do your research and get a good idea of what types of coverage you might need beyond what’s required by the state. And before you sign on the dotted line, be sure to read the fine print of the policy so that you fully understand what is and is not covered.