Auto Insurance: Navigating The Gray Area Of Stupidity

While auto insurance covers a wide range of incidents, there are limitations to what is covered, and acts of stupidity may fall into this category. Auto insurance policies typically cover damage to your vehicle, liability for damage caused to others, and medical bills resulting from accidents. However, intentional and fraudulent acts, as well as illegal activities, are generally excluded from coverage. In the context of auto insurance, acts of stupidity could be interpreted as negligence or reckless behaviour, which may result in claim rejections. For example, leaving your keys in the ignition and having your car stolen would likely not be covered. Understanding the specific clauses and exclusions in your auto insurance policy is essential to knowing what is and isn't covered in the event of an accident or damage.

Does auto insurance cover drunk driving?

Whether your auto insurance covers drunk driving depends on the specific circumstances of the incident and the policies of your insurance company. While drunk driving is illegal, insurance companies may still pay for damages caused by drunk driving accidents because they are not always considered intentional. However, it is important to note that insurance companies are not required to cover intentional or illegal acts, and they may deny coverage in certain situations.

In most cases, if you are found responsible for an accident while driving under the influence, your insurance company will cover the other driver's accident-related expenses and financial losses, including the cost of their vehicle if it is totaled. This falls under the liability portion of your insurance policy. Your insurance company is also likely to cover the costs of repairing or replacing your vehicle, as well as any medical expenses you incur. However, your insurance rates may increase significantly in the future as a result.

It is worth noting that insurance companies may try to deny liability and refuse to pay for any damages in some cases. They may argue that drunk driving is intentional conduct and, therefore, not covered by your policy. In such cases, you may need to hire a lawyer to negotiate a settlement on your behalf and convince the insurer to change its decision. Additionally, drunk driving accidents can also result in criminal charges and penalties, which are separate from any insurance-related matters.

The specific laws and regulations regarding drunk driving and insurance coverage may vary depending on your location. It is always a good idea to carefully review your insurance policy and consult with a lawyer to understand your rights and responsibilities in the event of a drunk driving incident.

Does auto insurance cover reckless driving?

Reckless driving is generally defined as driving a vehicle with an apparent disregard for the safety of people or property. This includes excessive speeding and aggressive manoeuvres like weaving in and out of traffic and disregarding traffic laws. While auto insurance provides protection against many things that can happen on the road, reckless driving usually isn't one of them.

Insurance Coverage and Reckless Driving

Typically, auto insurance policies cover accidents that occur because of common mistakes or negligence. Reckless driving, however, isn't a mistake or simple inattentiveness. It's an intentional decision to drive in an unsafe manner, which can even be criminal. Most auto insurance policies don't cover damages or liabilities arising from criminal driving. Your auto policy likely won't cover you when driving in this manner, leaving you solely liable for any damages or injuries you cause.

Reckless Driving Convictions

Reckless driving convictions will almost always result in higher auto insurance rates. A first-time reckless driving offence also comes with a ticket of up to $2,500, though the cost varies by state. A reckless driving conviction is more serious than a speeding ticket and is considered a criminal charge. In many states, it will go on your criminal record and must be disclosed when applying for certain jobs or a green card.

Insurance Claims and Reckless Driving

If you cause a crash while driving recklessly, your insurer will likely pay for the damages you cause, up to the limits of your policy. However, insurance companies view these charges seriously and will increase your rates. While insurance companies generally don't pay out for illegal activity, there are some instances when reckless driving or damages from a DUI are covered.

Does auto insurance cover vandalism?

Auto insurance covers vandalism, but only if your policy includes comprehensive coverage. Comprehensive coverage, along with collision coverage, is usually included in full-coverage auto insurance policies. Comprehensive auto insurance protects your car against vandalism, theft, and weather-related damage. It covers all costs associated with vandalism, though you usually have to pay a deductible. The deductible can range from $0 to $2,500, depending on your state and insurance provider.

Vandalism refers to someone intentionally damaging or defacing your vehicle. It can occur whether your car is on the road, in your driveway, or in a parking lot. Common acts of auto vandalism include slashed tires, broken windows, dents or scratches from someone keying your car, and putting sugar or other substances into your gas tank.

If your car has been vandalised, you should first document the damage and then file a police report. You should also contact your insurance company as soon as possible to inform them of the damage. Depending on the extent of the damage and the cost of repairs, it may not always be worthwhile to file a claim. If the repair costs are less than, or only slightly more than, your deductible, it may be more cost-effective to pay for the repairs yourself. Filing a vandalism claim could also result in a rate increase, depending on your insurer and state.

Does auto insurance cover accidental death and dismemberment?

Accidental death and dismemberment (AD&D) insurance is a type of insurance that covers accidental deaths and severe injuries. It is usually added as a rider to a life insurance policy but can also be purchased as standalone coverage.

AD&D insurance covers a range of circumstances, including accidental death, loss of limbs, loss of certain senses, and immobility. Policies specify a coverage percentage or amount for each type of loss. For example, if you lose one body part, such as a finger, hand, foot, or limb, or the sight in one eye, insurers typically pay 25% to 50% of the benefit amount. If you lose two body parts, you will likely receive the full payout. For paralysis, most insurers offer the full payout for quadriplegia and a partial payout of 50% for paraplegia.

It's important to note that AD&D insurance has some limitations and exclusions. It typically does not cover death or injury resulting from illness, self-inflicted injuries, suicide, war zones or acts of terrorism, or incidents involving drugs or alcohol.

The cost of AD&D insurance is generally lower than traditional term life insurance because it covers a narrower range of risks. For example, a $50,000 AD&D policy might cost around $5 per month, while a term life policy of the same value could be around $15 per month.

In summary, AD&D insurance can provide financial protection and peace of mind, especially for those with high-risk jobs or active lifestyles. However, it's important to carefully review the specific limitations and exclusions of any policy before purchasing.

Does auto insurance cover extended crash protection?

Auto insurance policies vary, but generally, standard car insurance does not cover repairs to your vehicle unless they are related to accidents or other perils covered by your insurance policy. This includes collisions with other vehicles or objects, vandalism, theft, natural disasters, and other acts beyond your control. Mechanical breakdowns due to engine failure or normal wear and tear are typically not covered by standard auto insurance.

However, some insurers offer extended protection plans, such as mechanical breakdown insurance (MBI) or vehicle protection plans, which can provide coverage for mechanical failures similar to a warranty. These plans are not as common as comprehensive or collision coverage and may not be available in all states. Additionally, MBI may only be available for newer vehicles with lower mileage.

If you are concerned about coverage for mechanical failures, it is important to review your auto insurance policy carefully and consider adding extended protection. You can also refer to your car's warranty, which typically covers repairs for mechanical issues for a certain period or mileage.

Frequently asked questions