A change in state law adopted in doubled the minimum insurance coverage for vehicle crashes. Starting on Jan. 1, 2025, insurers must cover $60,000 in cases involving the injury or death of one person, up from $30,000, and $100,000 for injury or death involving two or more people, up from $50,000.31 Dec 2024.
When Earning Money with Your Car, Personal Insurance May Not Cover You. there some scenarios and situations in which your car insurance will not cover.
Using your personal car for income-generating activities like ridesharing, food delivery, mobile businesses, or chauffeuring clients might leave you financially vulnerable. This is because personal auto insurance policies explicitly exclude coverage for commercial use.
Thank you for reading this post, don't forget to subscribe!Personal auto insurance often leaves rideshare and delivery drivers exposed,” warns Ramzy Ladah, a trial attorney at Ladah Law Firm in Nevada. “Most personal policies don’t cover commercial use, and even the insurance provided by rideshare companies has notable gaps. For instance, Uber’s insurance only kicks in after a trip has been accepted. If you’re simply waiting for ride requests, you’re typically uninsured. Many drivers only realize these gaps after an accident, forcing them to cover costs out of pocket.
Expert Advice: If you plan to use your vehicle for any commercial purpose, consider switching to a commercial auto insurance policy for full coverage. Alternatively, you may be able to add a business-use or rideshare endorsement to your current policy. Consult your employer and insurance provider to determine the best option for your situation.
Driving to Mexico? Your Personal Auto Insurance Might Not Cover You.
If you’re planning a road trip to Mexico, it’s important to know that your personal auto insurance policy likely won’t protect you there, even if it includes comprehensive coverage. While many policies do extend coverage for short trips to Canada, Mexico typically requires separate insurance.
Before embarking on an international drive, make sure to:
- Review Your Coverage: Confirm what your current policy does and doesn’t cover for travel in Mexico (or Canada).
- Get Mexican Insurance: Purchase temporary auto insurance from a licensed Mexican provider to ensure you’re legally and financially protected.
- Carry Proof of Coverage: Keep documentation of your Mexican insurance with you at all times during your trip.
Pro Tip: Research the liability insurance requirements for each Mexican state on your travel route. Since coverage requirements vary by region, ensure your policy meets the highest minimum liability threshold among the states you’ll visit.
Beyond the Major Gaps: Additional Coverage Exclusions to Watch For While the significant coverage gaps have been outlined, it’s essential to remember that your policy may contain other exclusions. Here are some additional scenarios to be aware of:
Additional Coverage Exclusions You Should Know About
While many significant coverage gaps have been highlighted, your auto insurance policy may include other exclusions you need to be aware of. Here are some common situations where standard policies might not have you covered:
1. Broken Glass
Damage to windows, including cracks, chips, or shattered glass, is often excluded from standard auto insurance policies. To avoid paying steep out-of-pocket costs, consider adding separate glass coverage, which can help with these frequent repairs.
2. Vehicle Modifications
Standard insurance policies typically only cover factory-installed features. If you’ve added aftermarket upgrades, such as a custom audio system, specialty lighting, or wheelchair lifts, make sure to purchase additional coverage tailored to protect these enhancements.
3. Intentional Damage
Deliberately damaging your own vehicle—whether in frustration or otherwise—is not covered by insurance. Similarly, reckless behavior that’s considered intentional can also void your coverage.
4. Civil Unrest and Terrorism
Comprehensive policies generally cover damages caused by riots, vandalism, or civil unrest. However, damage resulting from terrorism or acts of war is almost universally excluded, leaving you without coverage in such scenarios.
5. Racing and Speed Events
Testing your car’s limits on a racetrack? Standard auto insurance policies exclude coverage for racing, high-performance driving, and even track events or driving schools. To protect your vehicle in these activities, you’ll need specialized racing or track event insurance.
6. Classic Cars
If you own a classic car that appreciates in value, a standard auto policy won’t provide adequate protection. Specialized classic car insurance is necessary, offering features like agreed-value coverage to ensure your investment is appropriately safeguarded.