All too often, clients come to us operating under the mistaken belief that they have “full coverage” for their vehicle, only to discover too late that their car insurance doesn’t actually cover everything. The reality is that no insurance policy covers every potential cost after a car accident. Understanding what does insurance not cover is as important as understanding what it does cover. It is essential to avoiding surprises and ensuring you’re adequately protected should an accident occur.
Ohio law requires that owners and operators of vehicles insure themselves. To legally drive, you must have an insurance policy with a minimum liability coverage for bodily injury up to $25,000 per person and $50,000 per accident, along with property damage coverage up to $25,000 per accident. This coverage protects drivers when they cause injuries or property damage to others.
While that might sound like a lot, it’s not always the case. Also there are certain things that insurance policies typically don’t cover at all, regardless of how large your policy is.
Isn’t Liability Insurance Enough?
In many cases, basic liability coverage isn’t sufficient to handle your needs after an accident. Liability insurance only covers injuries and damages you cause to others, meaning you’re left vulnerable when it comes to your own injuries, medical bills, and vehicle repair costs.
Many people sign up for car insurance online, never having a detailed conversation about the additional coverages they may need. Even if you speak with an insurance agent, the conversation might stop with liability coverage. But that leaves you exposed.
What does insurance not cover if you only have liability coverage? Let’s take a look:
Your Own Injuries and Medical Costs
Liability coverage doesn’t pay for your medical expenses after an accident. This is one of the most important gaps in what car insurance does not cover if you don’t have medical payments coverage or personal injury protection (PIP). Without it, you’ll need to rely on your health insurance or pay out of pocket for medical bills related to the accident.
Damages to Your Own Vehicle
If you only carry liability insurance, your own vehicle’s damage from an accident won’t be covered unless you have collision or comprehensive coverage. If you’re at fault in an accident, you could be stuck paying thousands of dollars to repair or replace your car.
What Does Insurance Not Cover if I Have Full Coverage?
Many drivers are under the impression that so-called “full coverage” policies mean they are protected from any accident-related expenses once they’ve paid their deductible. Unfortunately, this often isn’t the case.
The specifics of what is and isn’t covered can vary from policy to policy. Here are some things that may not be covered by a typical auto insurance policy:
Personal Belongings Stolen from Your Car
If your personal items are stolen from your car, most auto insurance policies won’t cover them. Whether it’s a laptop, phone, or any other personal property, your car insurance won’t help. The good news is that homeowner’s or renter’s insurance often provide coverage for these items, even if your car isn’t on your property. Again, this can vary depending on the specifics of your policy.
Custom Modifications and Aftermarket Parts
Did you recently upgrade your car with a new sound system, custom wheels, or another aftermarket upgrade? Unfortunately, car insurance typically does not cover aftermarket parts or custom modifications unless you have specifically added them to your policy.
Basic insurance will only pay for repairs or replacement of standard parts, and anything custom would need to be specifically mentioned in an additional coverage rider.
Regular Wear and Tear
While your insurance covers damages from accidents, it doesn’t cover wear and tear that occurs over time. Regular maintenance costs—like tire replacements, brake pads, or routine engine repairs—are not included. These are expected as part of car ownership and not viewed as “accidental” damage by insurance companies.
Depending on the part and the mileage on your vehicle, they may be covered by a warranty. It’s often worth reaching out to your local dealership or the auto manufacturer.
Mechanical Failures
Like wear and tear, mechanical failures are another example of what car insurance does not cover. If your engine stops working or your transmission needs replacement, don’t expect your auto policy to pay for repairs. Extended warranties or mechanical breakdown insurance might help with these costs, but your typical liability or collision coverage won’t.
Intentional Damage or Illegal Activity
It may sound obvious, but if you damage your vehicle intentionally or while committing a crime, your car insurance won’t cover it. For instance, if someone damages their car while fleeing the police, that’s clearly not covered. Similarly, intentional acts of vandalism or using your car for illegal purposes are excluded from coverage.
Ridesharing Without Proper Coverage
Are you driving for a ridesharing service like Uber or Lyft? It’s important to know that what car insurance does not cover includes accidents that occur while you’re on the clock if you don’t have the appropriate rideshare insurance. Personal auto insurance often excludes commercial activities, so you would need rideshare coverage to fill this gap.
Other Common Gaps in Insurance
Here are a few more situations people face that general car insurance policies often don’t cover:
Acts of God: Some policies exclude natural disasters, like floods or earthquakes. Comprehensive coverage typically includes these, but not all policies have it.
Loss of Use: If you’re in an accident and your car is in the shop, your insurance may not cover rental car costs unless you have rental reimbursement coverage.
Accidents in Another Country: U.S.-based policies often don’t extend coverage outside the country, though some may include neighboring areas like Canada or Mexico.
Types of Coverage to Help Fill in the Gaps of Car Insurance
Ohio drivers should consider purchasing additional coverages to protect against gaps in what car insurance does not cover:
- Medical Payments Coverage: Pays medical bills for you and your passengers.
- Uninsured/Underinsured Motorist Coverage: Pays when you’re injured by a driver with little or no insurance.
- Comprehensive and Collision Coverage: Covers damage to your vehicle from collisions or non-collision incidents like theft or natural disasters.
- Umbrella Coverage: Provides an additional layer of liability protection beyond your car and homeowner’s insurance.
The Importance of Reviewing Your Policy
It’s critical to review your policy with a licensed agent and ask them the details of what does insurance not cover. Too many drivers assume they’re fully protected when, in reality, they’re only covered for a fraction of possible expenses. Consulting with an insurance agent about adding coverages like uninsured/underinsured motorist protection or umbrella policies can provide peace of mind in case of unexpected accidents.
What If I’m Not at Fault?
Some drivers operate under the idea that they’ll only be in an accident if someone else is at fault. This is not a wise approach to take. Anyone is capable of causing an accident. If another party is at fault, they are technically responsible for covering damages.
However, proving fault in an accident can be more complicated than many realize.
Additionally, the state of Ohio operates under a modified comparative negligence model. That means you could be responsible for some damages, even if the other driver is partially responsible. There are also cases where there’s a hit and run or the other driver is uninsured. While there is only one state that doesn’t require car insurance, 14% of drivers across the US are uninsured. Though they are still liable if they cause an accident, it can make an already complicated situation much more complex.
Ultimately, you should not operate your vehicle under the impression that someone else’s insurance will pay for any issues that arise.
Be Proactive and Prepared for Accidents
At The Richards Firm, we’ve seen too many cases where Ohio drivers thought they were fully covered, only to find themselves facing significant financial hardship after an accident. Understanding what car insurance does not cover is key to protecting yourself and your family. We encourage all drivers to take the time to evaluate their coverage and work with a licensed insurance agent to ensure they are truly protected.
While The Richards Firm doesn’t sell insurance, we’re always happy to review our clients’ policies and recommend additional coverages that might be beneficial. And if you’ve recently been in an accident, and you need a vehicle accident attorney in Hamilton, Greater Cincinnati, or Northern Kentucky, we’re happy to meet you for a free consultation and discuss your options.
We also have a free resource for what to do after a car accident, which you can find below. This free download can provide critical guidance, regardless of where you live in the US.
