Many years ago now, I sold car insurance for State Farm. It happened soon after taking a stab using just my English degree. First, I landed an editing role at a small publishing house. My salary was just $21,500 without benefits, so you can guess how long that job lasted. It was 2008, by the way. And while I made it through, that season still stings a bit.

Anyway, after my exit into greener pastures, the insurance role proved much more stable and lucrative. I could pay my Chicago rent! Unexpectedly, I found the job pretty interesting. I often took calls from folks wondering what their policies covered, or fielded the first phone call to the company after a car accident.

During my years there, I learned the different elements of a car insurance policy and what it all meant. Some drivers were surprised to learn they were missing certain coverage. Let’s review some of them so you can add them if you think you’ll need it at some point.

11 things many drivers assume are covered under car insurance, but often aren’t

1. Personal belongings inside your car

Your insurance usually protects your car, not what’s inside it. If someone breaks into your vehicle and takes your laptop, phone, or backpack, most auto policies won’t reimburse you. 

Homeowners or renters insurance is generally the right place to file for that loss. 

2. Normal wear and tear or mechanical breakdowns

Car insurance isn’t a maintenance plan. Things that wear out (brake pads, tires, belts, suspension and undercarriage) aren’t covered.

Similarly, if your engine just gives out because of age or use (not because of a covered event), you’re on your own.

3. Intentional damage

If you deliberately damage your vehicle, your insurer will probably deny a claim.

Car insurance is built to protect against accidents and unexpected loss, not intentional acts while you were in a bad headspace.

4. Using your car for business (without proper coverage)

Driving for work? If your policy doesn’t include a business or rideshare endorsement, accidents during that use may not be covered.

For example, delivery drivers or Uber/Lyft drivers typically need separate or additional coverage.

5. Racing, off-roading, or stunts

Standard car insurance doesn’t typically cover losses from racing, track-days, high-speed performance, or stunts.

If you participate in those activities, you’ll need special event or motorsport insurance or just expect to pay out of pocket for the end results.

6. Excluded and non-named drivers

If someone is explicitly not listed on your policy (say a high-risk family member), their accidents won’t be covered.

Make sure to check who is or isn’t allowed to drive under your policy.

7. Rental car “Loss of Use” and “diminished value”

When you rent a car, your personal coverage may or may not extend to rental cars. Even if it does, many policies don’t cover the rental company’s “loss of use” charges. That’s money the rental car company claims while the car is being repaired.

Also, if the rental car’s value drops permanently after an accident (“diminished value”), that’s often on you.

Confirm that you have proper coverage for these items, even if it means paying the company for an extra policy, before heading out with a rental car.

8. Car accessories and aftermarket parts

Custom parts, like upgraded stereos, spoilers, or floor mats, aren’t always covered unless you have a special endorsement.

Similarly, accessories like bike racks or detachable gear might not be covered under standard policies unless explicitly added.

9. Pet injuries

If your pet gets hurt in a car accident, standard policies usually won’t pay vet bills. Some insurers offer a limited “pet injury” add-on, but it’s not standard.

10. Losses above your policy limits

Even if your claim is valid, insurance only pays up to the limits you selected.

If damages or liabilities exceed that, you’re responsible for whatever’s left over. An umbrella policy or higher limits can help bridge that gap.

11. Acts of war, nuclear hazards, or “extraordinary risks”

Believe it or not, many car insurance policies explicitly exclude extreme, low-probability risks. These include war, terrorism, or nuclear events.

The companies essentially risk complete bankruptcy if they offer coverage that might be needed by large numbers of their insured at any given time.

These aren’t typical “accidents,” so they’re often carved out of coverage.

Why these gaps exist

At its core, car insurance is meant to protect against unexpected loss, not to act as a savings account or maintenance plan. Insurers draw lines around what they’ll cover so they can best price policies and manage risk.

What you can do to maintain proper car insurance coverage

Read your policy closely. Know your limits, exclusions, and exactly what your endorsements cover.

Talk to your car insurance company. Ask about adding endorsements for business use, custom parts, or rental coverage.

Use other insurance where it fits. Homeowners or renters insurance often covers your personal items in the car.

Build a maintenance budget. Since wear and tear isn’t covered, set aside money for regular upkeep.

Consider an umbrella policy. It helps if you want more liability protection beyond what your car insurance policy provides.

Shop around. If you find added coverage bumps your premium costs higher than what you’re comfortable paying for car insurance, seek alternative quotes from other companies.