1. Paying Off Your Car If It's Totaled Or Stolen
Keep in mind that the insurance company calculates the pay-out on the wholesale price that a dealer would pay for your car, minus your deductible, so the amount of your check may not be anywhere near what you actually owe. To ensure that your car is paid off in full, you need to purchase insurance to cover the difference, often called “gap coverage.” Be aware, however, that gap coverage carries its own list of restrictions, so read any policy carefully to understand exactly what you are getting for this extra coverage
2. Damage To Your Car From A Collision With Another Car
If the accident is the other driver's fault, his insurance should cover your car repairs -- assuming he has enough coverage or that he has insurance at all. So to ensure your car repairs are covered, you'll also need uninsured and underinsured motorist coverage.
3. Damage To Your Car From An Animal Or Mother Nature
Even if you do have comprehensive coverage on your auto insurance policy, you may not be covered in certain situations. Some insurers limit or exclude the coverage for collisions with animals, such as deer. Similarly, you may find a limit or exclusion for certain "acts of God," such as a tornado, earthquake or flood. In these instances, insurers may place limits on these types of events for drivers that live in certain geographic locations.
4. When You're On Business
Business use coverage is for more than business owners and employees who drive regularly for their jobs. You could find yourself without coverage if you were driving your personal car to any location other than your work for business, say a local convention, a networking breakfast or a customer's office. Even an innocuous situation such as running a quick errand to buy office supplies for your company could result in a denied claim.
If you are an employee and driving your personal car for work for any reason, even occasionally, ask your employer if they have a policy that covers you (and get the details in writing). If they don't, then add business use to your personal policy.
5. Your Medical Bills
6. Driving A Car You Don't Own
In the case of a driving a friend's car, his policy may cover you driving it, but it may not. And unless you're prepared to have a conversation with your friend about his insurance coverage, you may be in for a surprise if you have an accident and his coverage isn't high enough -- then the other party could go after you personally for the remainder of the costs.
7. Your Car When Someone Else Is Driving
8. Items Stolen Out Of Your Car
9. Aftermarket Accessories
10. Rental Car Costs
The bottom line is that auto insurers provide great coverage for the majority of situations when your car is out of commission, but even the best policies may not cover everything. Regardless whether you have a bare-bones policy or full coverage, be sure to read it carefully to understand exactly what you are getting for your money.