Importance of Home Insurance in Huntington Beach and Bellflower, California

Posted by cowaninsurance on April 12th, 2022

Car owners need to understand the value of getting auto insurance and know what it covers. However, with all of the intricacies of insurance coverage, deciphering every phrase is not always an easy feat. Even after a thorough reading, one might only get a rudimentary sense of what is and is not covered.

While most people are excited about what it covers, only a few are concerned about the policy exclusions alongside the terms and conditions. These sections are usually written in small. They also include jargon and a tortuous legal lexicon, making it challenging for non-specialists to understand.

So, what are policy exclusions all about? They refer to the items that are not covered by the insurance or the circumstances that prevent the coverage in which policies won’t be provided.

Before checking out the exclusions, let’s learn about the three types of car insurance in Cerritos and Westminster, California:

Third-Party Car Insurance:

Third-party automobile insurance protects against financial loss if the car causes bodily injury, property damage, or vehicle damage to a third party. Liability-only coverage is another name for it. This is the most basic type of car insurance that is mandated by state law.

Comprehensive Car Insurance:

Comprehensive car insurance pays for third-party losses and liabilities and damage to one’s vehicle in the event of theft, fire, vandalism, accidents, and other events. This policy can have add-ons for an additional layer of security depending on the conditions.

Personal Injury Insurance:

This policy only covers personal injury or damage to vehicles and losses. It pays for losses and damages resulting from crashes, natural disasters, fires, and thefts.

Standard exclusions in a car insurance policy include:

Let’s go over some situations that won’t be covered by car insurance:

General Maintenance:

Periodic maintenance is required for any car to function properly and address any issues that arise due to normal wear and tear over time.

Driving without a License:

Driving without a valid driving license is illegal. In the absence of a valid license, if someone gets in an accident, that person won’t be covered by the insurance, and claims will be rejected.

Disobeying Traffic Rules:

Car owners must follow all traffic laws and regulations and drive responsibly.

If someone breaks these rules by driving under the influence, driving while intoxicated, or simply running a red light, that person will not be covered for any accidents that take place at the time.

Non-renewal of the Policy:

Any lazy approach with a renewal of the coverage each year must be shunned altogether. If the policy is found invalid at the time of accident or theft, the car will not be deemed covered by that policy.

Commercial Use of Private Vehicle:

The policy does not cover using a private car for commercial purposes, such as hauling items for business or as a ride-sharing cab. So, if any unfortunate event occurs when performing these activities, the claim of the car owners will be denied.

Other conditions that are not covered by the car insurance include added accessories that modify the car, other people driving the vehicle, personal belongings inside the car, damages to the car tires, passenger cover, etc.

Whether it’s car insurance or home insurance in Huntington Beach and Bellflower, California, it is essential to find the right insurance company.