Beware Of These Pitfalls With Your Car Insurance

You need to beware of these pitfalls with your car insurance. You buy insurance because you want to financially protect ourselves from future losses after an accident. However, if you don’t pay attention to these pitfalls, your insurance company may not pay!

Times are hard enough, if one is paying for insurance, then the last thing you want to hear when you have an accident is that, the insurance company won’t pay. Then you would begin to shout that insurance is a scam. But have you taken time to read your insurance policy? Do you know there are things that invalidate your car insurance? Pitfalls that you have to be aware of to avoid “had I known”. Without much further ado, here are some points that you need to know

Using The Car For Purpose Other Than Personal Use

If you buy a car for hire purchase and you give it out to a driver and insure it, the driver would be using the car for purpose other than personal use. In that case, the car is being used for business. Should the driver run away with your car, or get in an accident, the insurance company will not pay. So, if you want to do the hire purchase business, you need to make sure you contact your insurance company to inform them about your intent. Some insurance companies may not insure a vehicle used for hire purchase because it is more likely to get involved in an accident than a car parked at the office. The ones that would cover it, would charge you more. But it is better to pay a little more and be covered than to pay less and not be covered.

Loss Or Damage From Confiscation

Recently, we saw a video of a man driving against traffic, who hit a police officer while trying to escape arrest. Driving against traffic has become so rampant in Lagos that the state has now started confiscating vehicles. The insurance company would not pay for loss or damage arising from confiscation, auction or destruction of your car by or under the order of any government or authority. It is imperative that you always abide by traffic laws when driving. And remember not to drink and drive as any accident from that would also not be covered.

Damage Outside Geographical Area

The insurance Company would not cover any accident damage or liability caused outside the geographical area covered. The insurance company would also not cover accident caused by an unauthorized driver. So, think twice about going on a road trip with your car outside of Nigeria as any damage or loss may not be covered by the insurance company.

I am an advocate of comprehensive car Insurance, but it is imperative to beware of these pitfalls with your car insurance to ensure that your money does not go to waste.

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