You might be able to claim for more than you think with your car insurance coverage.
8 Things You Didn’t Know Your Car Insurance Covers
Published on Dec. 11, 2024
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Rental Car Reimbursement
Being without a car after a collision can be a major inconvenience. “Rental reimbursement is an optional coverage that pays for a rental car (up to a daily limit) if your car is in the shop for repair after a covered claim,” insurance industry analyst Maya Afilalo says.
Afilalo explains that this type of coverage, like many on this list, is optional—meaning you have to choose to add it when you buy your policy. “Typically, rental reimbursement doesn’t increase your premiums significantly, but you need to have comprehensive and collision coverage,” she says.
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Travel Expenses Coverage
It’s not uncommon to incur expenses if you have a car accident away from home, and some policies will prevent you from being out of pocket. “Let’s say you get into an accident while driving to visit family out of town and need to spend an unexpected night in a motel, take an Uber to pick up a rental car and eat dinner at a restaurant,” Afilalo says. “Travel expenses coverage would help pay for those costs.”.
She points out that terms and limits vary depending on your policy, and sometimes, a return trip to collect your car will also be covered. As an example, Afilalo says you might be offered up to $500 per loss if the damage to your car occurs more than 50 miles from home.
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Coverage for Pedestrian or Cyclist Hit-And-Runs
“What many people may not realize is that their auto insurance’s uninsured/underinsured motorist (UI/UIM) coverage can protect them even as a pedestrian or cyclist,” Afilalo says. She explains this means that if a driver with no or insufficient insurance hits you, you can recover what the other driver’s insurance should have paid. “Coverage can include medical bills, lost wages, pain and suffering compensation, and even funeral expenses,” she says. “In many cases, this protection extends to other members of your household, even if they’re not named drivers on the policy.”
Afilalo points out that while UI/UIM is required by law in some states, it’s an optional add-on in others. She also points out that you may need to prove the at-fault driver’s liability and their lack of sufficient insurance. “This can be challenging, especially in hit-and-run cases,” she says.
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Roadside Assistance
There’s nothing worse than being stuck at the side of the road waiting for the pricey tow truck to arrive after a breakdown. Afilalo says that some collision and comprehensive coverage policyholders will have added inexpensive roadside assistance without even realizing it.
“You can get service for things like towing, jumpstarts, lockouts, tire changes, fuel delivery, and minor mechanical issues,” Afilalo says. “Additionally, even if you don’t have roadside assistance coverage on your policy, with some insurers (e.g., State Farm and USAA), you can still call for help and receive services at a negotiated rate.”
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Childcare Assistance
If a car accident results in you being hospitalized and having a long recovery, having personal injury protection (PIP) coverage can help relieve some of the financial stress. Afilalo explains that in some states, this coverage means you may be reimbursed for childcare expenses you wouldn’t have incurred if the accident hadn’t happened as part of its provisions for necessary services.
“This one is pretty state-specific and may only apply in no-fault states,” Afilalo says. “You need detailed documentation, such as receipts or proof that the expense was a direct result of the accident.”
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Pet Injury Coverage
Picking a policy that includes pet injury coverage can provide some peace of mind if your beloved four-legged family members travel with you often. “In the event of a covered claim, an insurance company will pay up to a certain dollar amount for vet bills and other related expenses if your pet sustains an injury,” says Colleen Parsons, an independent insurance agent.
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Pothole Damage
If you live in a rural area with poorly maintained roads, it could be worth getting collision coverage. “It handles damages to your vehicle caused by a pothole [because] it’s technically considered an at-fault accident,” Parsons says. While it might not be worth filing a claim for tire damage, if hitting the hole results in suspension damage, claiming could save you some serious bucks.
Collison coverage also allows you to claim if you hit an inanimate object, such as a telephone pole or guard rail.
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Hailstone Damage
Comprehensive car insurance coverage is handy when you live in a state that experiences extreme weather events. “If your car has ever been through a hailstorm and is now covered in dents, comprehensive coverage would allow you to file a claim,” Parsons says. “Most unusual covered claims fall under comprehensive coverage.”
Frequently Asked Questions
Is car insurance required?
Car insurance is a legal requirement in all states other than New Hampshire, where you only have to prove financial responsibility. In the other 49 states, laws are set locally regarding the minimum car insurance coverage required. If you drive without insurance, you risk receiving a costly fine, and, in some states, your license could be suspended.
About the Experts
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Maya Afilalo is a senior editor and industry analyst for AutoInsurance.com, an independent website that helps people find reliable and affordable auto insurance; email interview, Nov. 26, 2024.
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Colleen Parsons is an independent insurance agent with World Insurance Associates. She’s been helping homeowners in Western New York with their insurance for over twenty years; email interview, Nov. 27, 2024.
Sources
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“Bankrate: The true cost of auto insurance in 2024” (2024)
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“Bankrate: Average cost of car insurance in December 2024” (2024)
