5 Things Comprehensive Insurance Won’t Cover

A lot of people are not aware of the things that comprehensive insurance won’t cover. It is falsely believed that having comprehensive insurance covers all losses. The other day I was discussing insurance with a friend of mine. She narrated a story about how her driver stole her car and the insurance company didn’t pay for the car. I asked her how it happened and she informed me that her driver dropped her off at work as usual. Around 2 pm that day, she called the driver to take her out but his lines were switched off. She thought it was strange so she went downstairs and the driver and the car were gone.

She called her husband and they went to the police station and made a report immediately. Thankfully, she has comprehensive insurance so if they don’t find the car, the insurance company would replace the car. Or so she thought. The insurance company informed her that the car was not covered because it was stolen by her driver. This brings me to the 5 things that comprehensive car insurance will not cover.

Member of Family Theft

Do you know that if a member of your family or household takes or steals your vehicle, the vehicle will not be covered by the insurance company? This also includes your current or ex-employees. This means that if your driver, husband, wife, son or daughter runs away with your car, it would not be covered by the insurance company. Unless you have Fidelity insurance which is a more expensive insurance than comprehensive insurance.

Unsecured Key

Growing up watching American movies, we used to see people leave their car keys in the ignition come out and walk into a convenient store. I am not sure that happens often in Nigeria, particularly in Lagos. But in case you do that, please note that any loss or damage caused by theft or attempted theft if the keys (or keyless entry system) to your car are left unsecured or unattended, will not be covered by your insurance. Also, if your car is stolen because you left your car keys on or in the car unattended, it would not be covered.

Unsecured Car

It is not enough to secure the car key, you are also required to secure the car. Insurance company would not cover loss or damage caused by theft or attempted theft if your car was not switched off. Also, if the car is not properly locked or if any window, roof opening, removable roof panel or hood was left open or unlocked.

Theft not reported to the Police

I recently wrote about how Police report hinders insurance claim. The insurance company will not cover any loss or damage due to theft. Unless it has been reported to the police and a crime reference number is obtained. This also includes vandalism. Some Insurance companies may decide to waive this requirement but it is at their discretion.

Betterment

The insurance company will not cover any betterment you carry out on your car. Betterment means an improvement of something. If you decide to improve on your car, you do it at your own cost.

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