Understanding The Intricacies Of Insurance

Will Insurance Cover Damages If You Hit Your Own Vehicle?

It seems like something that would only happen in a comedy movie. You're pulling into your driveway and, for one reason or another, you hit a second vehicle you own. Although auto insurance exists to pay for damages and losses caused by accidents, whether this type of incident is covered depends on the kind of policy you have.

Only Covered Under Collision

Damage caused by you to a vehicle you own is only covered under collision insurance. This is optional coverage that pays for damage to your vehicle regardless of how it was caused, including incidents caused by you (e.g. forgetting to put the car in park). However, you will generally have to pay a deductible first before the insurance kicks in to pay the repairs, and the deductible may apply to both vehicles.

If you only have liability insurance, though, your insurance company will not pay for the damage because this type of insurance can only be used in cases where you cause damage to vehicles owned by other people. If the car or truck was registered in the name your teen, for instance, then your liability insurance would likely pay for the damages since the vehicle is owned by another person.

However, since your name is on the registration, the damages wouldn't qualify for coverage, and this may also be the case if the car was registered in the name of your spouse, since the person would be considered a co-owner by virtue of the marriage.

Be aware, even if each vehicle were covered by policies from different insurance companies, any claim you submit to either company would be denied because you're the registered owner of both vehicles and you're the person liable for the damages.

Business Usage Not Allowed

It should be noted the insurance company will not pay any damages caused by vehicles that are used for business purposes. This is because residential policies typically include a clause that specifically prohibits coverage for business vehicles, since there are commercial policies available designed for this specific purpose.

Therefore, if the vehicle you were driving when you hit your second car was one you used for your home business, your insurance company may not cover the damage even under your collision policy. It's a good idea to look over your insurance policy or contact a representative at your vehicle insurance company to clarify its policy regarding this particular issue.

To learn more about the types of accidents your insurance policy covers or to obtain a quote for coverage for your existing cars and trucks, contact a local insurance company or broker for assistance. Visit a site, like http://www.unitedsecurityagency.com, for more help