What Does Car Insurance NOT Cover? 10 Possible Exclusions You Need to Know

two people looking at a car wreck

Have you recently purchased car insurance but don’t know what it covers? For instance, does it provide coverage for repairs or thefts? And does your car insurance cover damage to your vehicle through natural disasters?

Interestingly, out of 50 states in America, 49 require drivers to have active car insurance. However, not every insurance plan provides sufficient coverage for all different events. For instance, some policies don’t offer adequate coverage for rental car reimbursemen when your car is under repair, and for that, you may need to buy additional coverage to save yourself from any unnecessary expenditures. 

What does car insurance cover? In this article, we’ll explore 10 common exclusions in car insurance policies.

Why Do You Need to Know About the Exclusions?

In an ideal world, your car insurance policy would cover any type of damage or accident. However, that’s rarely ever the case. This is because insurance companies not only need to provide you with adequate coverage and meet your demands, but also they need to curate plans that can help them withstand the high competition and risks. 

That’s why every car insurance policy has some common exclusions. These exclusions can help waive coverage for specific events and tasks. Car insurance companies should find a balance between what they provide and what they earn so they can successfully stay in business and retain a loyal customer base.

Not all insurance companies have found this balance. Imagine filing a claim for a particular incident and finding out at the end of the process that your car insurance doesn’t cover what you need. 

To save yourself from such an unfortunate situation, it is imperative to know about common exclusions a car insurance policy may have. This knowledge will help you evaluate the coverage required. You can also conveniently manage your expenses if you may have to pay for a specific incident yourself.

10 Common Exclusions in Your Car Insurance Policy

Below we have listed 11 common exclusions in your car insurance policy.

10 common car exclusions desktop

1. General Maintenance Negligence

Suppose you forget to change your car’s oil and the engine stops working correctly. In a case like this, you would have to pay for all the maintenance expenses from your pocket. 

According to the National Association of Insurance Commissioners, your car insurance doesn’t provide coverage for any maintenance expenses. So whether there is a need for regular maintenance or a sudden and serious one, you will have to incur the costs yourself. 

2. Excluded Drivers

An excluded driver is someone who the insurance company has explicitly refused to provide coverage for in your car insurance policy. This could be a person in your household whose name is excluded from your policy, meaning they have no insurance to drive your vehicle.

To save yourself from paying off high premium costs, you can exclude or prohibit members with bad driving records from driving your insured car. Simply consult your auto insurance provider and fill out the required form. But make sure that you know the rules, as some states don’t allow such exclusions.

3. International Travels

In general, your personal car insurance will not offer coverage for international traveling. That’s because there are many territory restrictions. As a result, there is a high risk of making sudden payments out of your own pocket, which could get quite expensive. 

Many people get an additional policy in order to find coverage to overcome this. Alternatively, there is international auto insurance available that many insurance providers offer. 

This insurance provides for any damages or theft incidents that might have happened to your car while you used it in another country. It is wise to ask your insurance company whether they provide this insurance before heading out on your trip abroad. 

passport and luggage

4. Rental Car Reimbursement

Rental car reimbursement covers transportation bills while your insured car is under repair. But, this coverage doesn’t apply to regular maintenance. 

Many insurance companies provide for this expense and any rental expenditures — but some don’t. This means you might have to incur the expense yourself. Before you file a claim for this coverage, go through your policy or communicate with your insurance provider first to avoid any misunderstanding.

5. Personal Belongings Stolen From Your Car

If you have recently experienced theft and have lost possessions from your car, you might be planning to file a claim with your insurance provider. However, your auto insurance typically doesn’t provide coverage for such events. 

Unfortunately, comprehensive car insurance only covers your car’s pre-installed or permanent features and not your personal belongings that you might have left in your vehicle during the incident. 

For example, if a thief broke into your car and stole your belongings, your insurance won’t pay out for personal items such as a stolen purse, iPod, or other personal valuable items. However, if the theft incident resulted in damage to your car’s window, the insurance will provide coverage for its repair.

6. Business Use

Your personal car insurance doesn’t cover damages that happened while you used your vehicle for business purposes. So if you use your car to deliver food, you will most likely have to seek other supplemental insurance policies for adequate coverage. 

However, considering that many people are now using their vehicles to earn extra money, most companies are revising their car insurance policies to accommodate them.

7. Police Seizure

If the police seize your car due to non-payment, your car insurance company is not responsible for reimbursing you for any amount.

8. Vehicle Modifications and Customizations

If you want to upgrade your car and add some new features to modify it, you should know that your current personal auto insurance policy may not provide coverage for new customized elements. Therefore, regardless of how these custom parts may increase the value of your vehicle, you will have to seek a separate insurance policy for such add-ons. 

9. Other Types of Vehicles

Your personal auto insurance doesn’t cover things like racing vehicles or off-road vehicles. So if you use any of these, know that you will have to purchase a different policy. 

two people enjoying an off road vehicle ride

10. Fraudulent Claim

The last exclusion in a car insurance policy is for fraudulent claims. If you have filed a wrong claim for coverage and your insurance company knows about it, you may not be provided with any coverage. You might also not find other insurance providers to help you cover any damages during this time. 

Expert Car Insurance Tips

Now that you know about some standard and significant exclusions, here are a few tips to save you from unnecessary problems. 

  • Without car insurance, you may be considered an illegal driver depending where you live. This could result in you incurring substantial costs or legal difficulties.  
  • Don’t drive your vehicle without a license or in any other compromising situation that might get you into trouble. If you don’t have legal permission to drive, sign up for ride services such as Uber or Lyft, and save yourself from a disaster.  
  • Before you buy an insurance policy, understand how insurance deductibles work. This is an amount you are responsible for paying on an insured loss, and the amount is deducted from the payment of the claim.  
  • It is tough to pay for your or your fellow passengers’ medical bills in an accident where you are at fault. Before you find and select an auto insurance policy, make sure that it covers such expenses. If it doesn’t, prepare yourself for this possible expenditure. 

Contact Torian Insurance

Torian Insurance agent holding a laptop

Now that you know what car insurance covers and what it doesn’t cover, getting a policy should be your next move. 

But finding a comprehensive car insurance policy is a challenging task, especially with so many options available online. However, this factor shouldn’t discourage you from getting one.

Torian Insurance provides a new and easy way to shop for your insurance to save yourself from getting into a complicated procedure. The insurance experts start with understanding your needs before contacting their network of insurance providers and then recommending to you the best insurance policies for your car, health, life, and even home. 

With some fantastic insurance experts on Torian Insurance’s team, you will get all the assistance you require to answer your questions and select the best insurance policy that meets your coverage requirements.

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