Car Insurance Exclusions : What is Not Covered by Your Car Insurance Policy?

General Exclusions in a vehicle insurance policy:

• Loss due to substantial downgrading such as mechanical failure.
• Wear and tear in general.
• Damage caused by the driver who is driving under the influence of alcohol.
• Depreciation of tyre/tube
• If the car is used for other purposes not mentioned in the insurance. For example, use of personal cars for commercial purposes.
• If the owner doesn’t comply with the rules mentioned in the policy document.
• If the damage is caused while someone who doesn’t own the policy is driving the car.

Other Exclusions: Situations when the damage is not covered:

• If the car insurance policy expires due to non-renewal on a timely basis. The damage caused in between the period when your policy expires and you still haven’t renewed it.
• In case of damage caused to the engine due to leakage of oil.
• In case of damage caused to the car due to the violation of guidelines as prescribed by the car manufacturer.
• In case the damage is caused due to terrorist attack, riots, nuclear weapon and so on.
• In case the claim of the car insurance holder gets rejected and he/she doesn’t move to the court within 12 months of the rejection of claim.
• If the damage is caused purposely by the policy owner.
• Also, in case the damage is caused due to organized racing.

Thus, there are many tricky situations when you can’t claim for your car insurance in case of damage. For instance, it is seen in many cases that a car receives damage while a family member is trying to learn to drive the vehicle or someone else is using your vehicle. In such circumstances the car insurance online claim gets denied and you have to bear the loss from your own pocket.

What more does your car insurance not cover?

Here are a list of some other important things are not covered in a car insurance:

1. No coverage to your personal belongings in your car:

If your car was broken by someone to snatch your belongings kept inside the car, you can claim car insurance for the damage caused to your car due to the mishap but you can’t claim for the loss of belongings that were stored inside the car, like mobile phones, any asset, laptops and so on.

2. If you car gets stolen, you must file an FIR to seek claim:

Though most car insurance companies provide cover for stolen cars, it is important to lodge a complaint in the police station. This way, you can seek satisfactory return on your stolen car. Here, you must know that if your car gets stolen due to your negligence, the car insurance company might reject the claim. So it is important to apply significant caution to avoid such insurance exclusions caused due to personal carelessness.

3. Using personal car for commercial purpose:

Your insurance claim gets rejected by the insurance provider if you use your personal vehicle for commercial purpose and the car gets damaged in the course. Even if you use your car to carry something related to your business and it gets damaged on the way, you still cannot claim for car insurance unless your insurance policy includes coverage for commercial vehicles.

4. No-Coverage can be claimed when damage is caused while someone else is driving your car:

As discussed in the article earlier, car insurance exclusions are something that most people are unaware of. However, if someone else is driving your car or you are driving someone else’s car and it gets damaged, you cannot claim for the damage. Even if the other person driving your car when it collides is your spouse, you still can’t claim for the damage. The car insurance agency will reject your claim.

5. No coverage on damages caused due to natural calamity:

Natural disasters like earthquakes, floods etc., are mostly not covered and they fall under insurance exclusions unless it is a comprehensive insurance policy. Thus, you are not eligible to claim for the damage caused due to the same. So, it is important to know if your insurance company offers cover for such calamities, which they mention under ‘Acts of God’ criteria in the policy document.