Have you ever wondered what happens if your car leaks gas or oil after a crash? Will your auto insurance pay to clean it up? The short answer is yes, but it depends entirely on what exactly spilled.
When Does Your Auto Insurance Policy Pay?
If you are in a car accident, your vehicle might leak its own operating fluids. For example, your car might spill gasoline, motor oil, transmission fluid, or antifreeze onto the road. In this case, your personal auto insurance will usually cover the cleanup costs.
This payment comes from your property damage liability coverage. Therefore, if the fire department or a special hazmat crew cleans up a fuel spill caused by your crash, your insurance helps pay that bill. You are legally responsible for the mess, so your property damage coverage steps in to protect you. The total liability limit for bodily injury and property damage will be shown on your policy declarations.
When Does Your Auto Insurance Policy Say No?
However, your personal policy has strict rules about transported cargo. It features a “pollution exclusion” for any hazardous materials you carry in your vehicle.
For instance, if you haul large amounts of chemical fertilizer, commercial paint, or bulk fuel in the back of your truck, your personal policy will not pay for those cleanups if they spill. Instead, you would need a commercial auto policy with special pollution endorsements to cover that kind of environmental mess.
Watch Your Coverage Limits
Even if your policy covers the spill, you must watch your coverage limits carefully. Texas requires a minimum of just $25,000 for property damage liability.
Unfortunately, hazmat and environmental cleanups cost a lot of money. Furthermore, you also have to pay for the damage to the other driver’s car. If the total bill is higher than your limit, you must pay the remaining balance out of your own pocket.
How a Local Auto Insurance Agent Can Help
Understanding policy limits and exclusions can be tough. That is why working with a local independent insurance agent like AlphaSure Affordable Insurance Services is a very smart move.
An independent agent can help you shop for the best auto insurance and home insurance for your specific needs. Because they do not work for just one company, they can compare different policies for you. This ensures you have the right amount of coverage to protect your wallet before a messy accident ever happens. Call or visit a local San Antonio or Laredo, TX office today.
