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

When we buy a car insurance policy, we are mostly concerned about all the aspects that the insurance policy covers, while forgetting about the aspects that are not covered or the exclusions in the policy. And since insurance involves a lot of technicalities, interpreting most of the technical knowledge is indeed difficult.

Also, exclusions being a complex subject about which people don’t have much awareness, makes it all the more complicated. Thus for most people, rather than understanding the details of their car insurance policy in terms of what all aspects are covered and what all are not covered, they just could have a reasonable idea of the same.

Further, in most cases, the things that are covered in insurance are always written in large letters while exclusions of the car insurance policy are given in small letters along with the terms and conditions.

In this article, we are talking about the exclusions in your vehicle 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.

Conclusion
In most cases of vehicle insurance, it is difficult for people in general to decode the insurance exclusions or to understand their basics. Moreover, in many cases there are exemptions in the insurance policy which are difficult to comprehend at the initial stage.

Thus, it is very important to get clarity of the details written in the insurance copy. You must clarify all the jargons that you don’t understand with your insurer. Ask them to translate every detail in simple language so that you can comprehend the same. Also, ensure no information is lost in the process.

Once you are clear about every minute detail regarding the insurance policy, including the car insurance exclusions, you should go ahead and buy the policy.

Also Read: What is voluntary deductible in car insurance? Car insurance misconceptions About Voluntary Deductible

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