No physical damage coverage:
This limitation works just like the “double deduction” described above. However, this restriction is more punitive.
Put simply, if an unnamed driver borrows your car and gets into an accident, the insurance company will pay the third party compensation (the liability), but the damage to your car will not qualify for coverage.
All Permitted Use restrictions are described in detail in your policy at the outset and also in your renewals. Your agent must also disclose these restrictions when purchasing your document, which is why you want to file Professional insurance agent/broker Who really understands these intricacies and can effectively explain these limitations to you when you apply for coverage.
Lax usage restrictions are quite common and are employed by some of the large, reputable insurance companies nationwide, so be sure to check your policy carefully.
Not all auto insurance policies are standardized. They vary from carrier to carrier and there are many coverage benefits, limitations, and exclusions that are unique to each carrier. Be sure to consult with your agent to find out how your particular policy will work.
Food for thought – the next time you’re thinking of buying an ‘online’ policy without someone helping you, or from an ‘800#’ with an ‘order taker’, consider how details like this might not be adequately described or might get lost in some way. What’s in Translation – It pays to have an agent who can really look out for you.