What Exactly is Defined as Incidental Damage?

Incidental damage is defined as money that equals the cost of damages or compensation that must be paid to someone else for an injury or losses. Although this definition may seem a little difficult to understand, it basically states that incidental damage can be awarded through legal means to compensate an injured party for losses including pain and suffering. Most people overlook this type of coverage when choosing a auto, home or business insurance plan.

An example of this type of compensation would be money awarded by an insurance company after an automobile accident in which a person incurred lost wages, lost time, and pain incurred from an injury. For example, if an individual was involved in a car accident on the day of his or her wedding and was unable to go through with the original plans, incidental damage could be awarded.

Another definition of incidental damage could involve a breach of contract within a business dealing. If you own your own business and a client was not happy with a particular product, he or she could be awarded a monetary amount to compensate for the loss. These types of expenses could include the cost of telephone calls, return shipping of a product, etc. Your business insurance policy would take care of this amount.

A third example of incidental loss is compensation for spoiled food due to a power outage from a storm or other calamity. Your homeowners insurance plan would take care of the loss of food up to a specific dollar amount depending on your coverage and deductible.

It is important to consider all types of coverage when choosing an insurance policy. You should always compare quotes for different types of policies and find a plan that will fit within your budget. When comparing plans, look at the amount of coverage for this type of loss. You never know when you might be involved in an accident or loss and need the help of your insurance provider. Compare quotes and rates today to find the perfect insurance plan for your situation.

What Is Incidental Damage on an Automotive Warranty?

Incidental damage on an automotive warranty can be confusing. This term refers to damage not caused by the individual directly. Rather, it is caused indirectly or through the normal wear and tear of use of the vehicle. Often times, this type of incident is not covered on your warranty. Depending on the circumstances, it is essential to know what this implies.

Know Your Warranty

When it comes to incidental damages, which are also known as consequential damages, warranties are often specific about the types of damages not covered by the policy. However, these warranties differ significantly from one manufacturer to the next.

Most define consequential damages as any not directly related to an act. However, they can be a consequence of that act. Some of the most common exclusions from auto warranties include the following:

  • Loss of commercial use of the vehicle
  • Loss of use of the vehicle in general
  • Loss of time
  • Inconvenience
  • Wear and tear on the vehicle

For example, if you are operating your vehicle and scratches from regular use occur, this is not something most auto warranties cover. If something happens while the vehicle is still new, though, this is less likely to be considered normal wear and tear. Therefore, it is incidental damage.

In some cases, it can be ruled as necessary. For example, if you are in an accident and the fender is damaged, the fender is covered. However, whether or not the gas tank that was damaged as a result gets coverage differs from one policy to the next. Some forms of accidental damage are incidental. Any damage caused by a true accident which is not the result of negligence, is incidental damage.

How to Know

If you are unsure what type of damage is covered and what is not, it is a good idea to call the warranty issuer and inquire about this. It is best to do this before you actually invest in the vehicle or buy the extended warranty. If you are facing any type of damage, contact the provider of the warranty to inquire about its coverage as there is no harm in doing so.

Incidental damage on an auto warranty is rarely a covered element. However, your insurance company’s policy may provide some protection depending on the situation. Discuss the types of protection you get from your insurer to determine if this type of coverage is in place.

How to Lower the Cost of Teenage Auto Insurance, Part 2

Insist on Used CarThere’s a secret among the ranks of auto insurance providers that you might not be aware of. Okay, it’s not really a secret—at least not by definition. Because something is not commonly known doesn’t automatically mean that someone (i.e., your car insurance provider) is trying to keep it hidden from you. But the fact that so few parents actually know there are steps they can take to lower the cost of their teenager’s car insurance certainly makes it seem that way. Here are two effective ways to accomplish that end.

  • Raise your deductibles. You’re probably thinking it makes a lot more sense to keep your deductibles low, especially during your teenager’s formative driving years, to cover for the high risk of incidental damage. But raising your deductible can have a seriously diminishing effect on the insurance premium that you pay out, and could work to counterbalance the strain of taking a teenager onto your family policy. As a rule of thumb, you should never raise your deductible so high that you won’t be able to pay it if something does happen.
  • Insist on a used car for your teenage driver. New cars cost a lot more to insure, and when you throw a young driver into the mix, you’ve got a financially crushing combination. A used car will help lighten the economic load and will also go a long way in teaching a teenage driver a few lessons in humility, as well as the value of the dollar. That said, it’s critical to your child’s safety that the used vehicle is equipped with all the necessary safety features. The last thing you want to do is compromise your teenager’s safety for the sake of a few saved dollars.