What insurance gaps are you missing. You buckle your seatbelt every time you drive. You stop at yellow lights. You’re a careful, responsible driver and you’ve had auto insurance for as long as you’ve had a license. But here’s a question most drivers can’t fully answer: Do you actually know what your policy covers?
Most people assume their auto insurance will “handle it” if something goes wrong. But the details of what gets covered, and what doesn’t, can catch even the most responsible drivers off guard. As an independent insurance agency that has served families across Southwest Michigan and Northern Indiana since 1960, we’ve seen firsthand how coverage gaps show up at the worst possible moments.
Here are five auto insurance gaps that surprise people most and what you can do about them today.
Gap #1: Rental Car Coverage After an Accident
If your car is in the shop after an accident, how do you get to work? Unless you’ve added rental reimbursement coverage to your policy, the answer is: at your own expense. This optional add-on is inexpensive at often just a few dollars a month, and it pays for a rental car while your vehicle is being repaired after a covered claim.
Many standard policies don’t include this automatically. If you haven’t checked recently, now is the time.
Gap #2: Uninsured and Underinsured Motorist Coverage
Here’s a sobering fact: Roughly 1 in 8 drivers on U.S. roads is uninsured. In Michigan and Indiana, that number can be even higher in certain areas. If an uninsured driver causes an accident and injures you or damages your vehicle, their insurance won’t pay because they don’t have any.
Uninsured/underinsured motorist (UM/UIM) coverage protects you in exactly this scenario. It steps in to cover your medical bills, lost wages, and vehicle damage when the at-fault driver can’t. Without it, you may be left paying out of pocket for someone else’s mistake.
Gap #3: Gap Insurance on a Financed Vehicle
If you financed your car and you total it in an accident, your auto insurance will pay what the car is currently worth (its actual cash value -ACV). But if you owe more on your loan than the car is worth, you’re responsible for the difference.
This “gap” between what you owe and what insurance pays can be thousands of dollars. Gap insurance covers that difference, making sure a totaled vehicle doesn’t leave you still making payments on a car you no longer have.
Gap #4: Personal Property Inside Your Vehicle
Your auto policy covers your car but not what’s inside it. If someone breaks into your vehicle and steals your laptop, tools, or sports equipment, your auto insurance typically won’t pay for those items. That coverage falls under your homeowners or renters insurance policy.
This surprises a lot of people, especially those who regularly carry valuable equipment in their vehicle. The good news is that your homeowners or renters policy usually does cover personal property stolen from your car, though deductibles apply. It’s worth reviewing both policies together to make sure you’re protected.
Gap #5: Rideshare or Delivery Driving
If you drive for Uber, Lyft, DoorDash, Amazon Flex, or any other rideshare or delivery service, even part-time, your personal auto policy may not cover you while you’re working. Most personal policies exclude commercial use of your vehicle.
A rideshare endorsement or commercial auto policy bridges this gap. Without it, an accident while you’re on the clock could leave you completely unprotected.
The Best Defense: A Policy Review
The good news is that fixing these insurance gaps is usually affordable and straightforward, especially when you work with an independent agency like John Scott Insurance. Because we represent multiple top-rated carriers, we can compare options and customize your coverage rather than forcing you into a one-size-fits-all policy.
We recommend an annual auto insurance review, or any time your life situation changes, such as you buy a new car, add a teen driver, move, start a side job, or finance a new vehicle.
Don’t wait until after a claim to find out your coverage fell short. Call us today. We’re here to make sure your auto insurance actually does what you think it does.