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Understanding Auto Insurance and How Homeowners Insurance Can Help

At O1ne Mortgage, we understand the importance of protecting your assets. If you have any questions or need assistance with your mortgage, call us at 213-732-3074. In this article, we will explore what auto insurance typically covers and how homeowners or renters insurance can fill the gaps.

What Does Auto Insurance Typically Cover?

Auto insurance policies generally include several types of coverage, each designed to cover different expenses following an accident. Here are the main types of auto insurance:

Liability Insurance

Liability insurance covers expenses resulting from an accident you cause. It pays for medical expenses for the other driver and property damage but does not cover your own vehicle or injuries.

Comprehensive Insurance

Comprehensive insurance covers damage from events beyond your control, such as weather-related incidents, theft, or hitting an animal. It does not cover personal belongings inside your car.

Collision Insurance

Collision insurance covers damage when your car collides with another vehicle or object. It also covers damage from potholes or if you roll your car. This coverage is usually required by lenders if you lease or finance your car.

How Homeowners or Renters Insurance Can Fill the Gap

While auto insurance does not cover personal belongings in your car, homeowners or renters insurance can help. These policies cover personal items stolen from your car or damaged in an accident.

Coverage Limits

Homeowners or renters insurance policies typically have limits on coverage for high-value items like jewelry, electronics, and collectibles. You may need to purchase additional coverage, known as a “floater” policy, for these items.

What to Do if Your Vehicle Is Broken Into or Stolen

Discovering that your car has been broken into or stolen can be stressful. Here are steps to take to minimize the damage:

1. Call Local Law Enforcement

Report the incident to the police and take note of any stolen items. Your insurance company will likely require a copy of the police report if you file a claim.

2. Gather Your Information

Collect documentation related to your vehicle, such as the license plate number, title, recent photos, mileage, and service records. This will help when speaking with the police and your insurance company.

3. Let Your Insurer Know

Inform your insurer about the theft, even if you are unsure about coverage. If you have comprehensive coverage, you can start a claim for the loss of your vehicle or any damages.

4. Contact Your Lenders and Bank

If any credit or debit cards were stolen, contact the issuers immediately to block access and get new cards. You can also place a temporary security alert on your credit reports to prevent identity fraud.

The Bottom Line

Auto insurance provides essential financial protection in the event of an accident, covering injuries and property damage. However, it does not cover personal belongings. Homeowners or renters insurance can fill this gap by covering personal items stolen from your car. For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you protect your assets.

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