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homeowners or renters insurance generally covers your personal property, no matter from where it's stolen.
• Business use restrictions. You must maintain a business car insurance policy if you use your personal vehicle for business purposes, whether you deliver pizzas part-time, participate in a ride-sharing service (like Lyft or Sidecar), or even run business errands for your boss. Otherwise, you may not be covered in an accident or theft and may even void your coverage. Ask whether your employer's policy covers you; if not, add business use to your own policy or use a company car.
• Other coverage shortfalls to watch out for:
• • If your car is stolen or damaged, most insurers cap payments for a loaner car at specific daily and total usage rates, so if you want a nicer loaner car or your vehicle needs extensive repairs, you might have to pay out-of-pocket for some expenses.
• • If your car is stolen or totaled, the insurer will reimburse you for what the car is currently worth (Blue Book value), which, if you're leasing or paying off a loan, may not be enough to cover what you owe. In that case, consider getting gap insurance.
• • Don't skimp on uninsured motorist coverage, which protects you if the other driver is at fault and isn't insured. It's relatively inexpensive compared to the collision coverage you take out in case you're at fault, so why tempt fate?
• • Policies generally won't provide liability coverage for injuries or property damage that were caused intentionally.
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• Even if you drive a clunker, it pays to have adequate car insurance. Just make sure you fully understand what is and isn't covered.
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• Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney