Auto Insurance Exclusions – Bankrate.com
All auto insurance policies come with a list of exclusions, but what are exclusions in an insurance policy? Insurance exclusions are a list of things that are specifically not covered by this policy. It is common for policies to have different exclusions depending on the policy type and coverage level. Still, there are some industry-wide exclusions that you can expect. Either way, it is important to know what a policy does and does not cover before you buy it. When looking for auto insurance and comparing quotes, it can be helpful to compare exclusions to make sure you are getting the coverage you want.
Why are auto insurance exclusions important?
Imagine filing a claim only to find out that what you are filing is not on your car policy. While it's not idealistic, it's an overly plausible scenario for people who haven't checked their insurance exclusions. Understanding the policy and its nuances are less likely to get a claim denied.
For example, basic liability insurance only covers the costs of others for whom you are liable. This type of coverage excludes your own medical and material costs. To get the coverage you want, it is important to know what your car insurance covers. Otherwise, you could spend months paying for a policy only to find out that it doesn't cover what you expected when you need it most.
Insurance exclusions often relate to different types of coverage. These exclusions can be specific to the type of insurance and help define what these policies are best suited for. The nuances and limitations of policies are one reason some drivers have multiple types of insurance for their vehicles. Even the best car insurance only pays for what the policy covers.
Exclusions from liability insurance
Liability insurance covers the costs of another driver for whose costs you are responsible. Suppose you are to blame for an accident. In this case, your liability insurance will help cover your financial obligations to the drivers, passengers and property that you have injured or damaged outside of your vehicle. However, this type of coverage does not cover your costs for personal injury or property damage which are exclusions.
MedPay Insurance Exclusions
This type of insurance only pays for medical bills and does not pay for repairs or replacements of property, including vehicles. Imagine having an accident that destroys your car and injures you. In this case, regardless of fault, a health insurance policy would help with your medical bills, but not with replacing your vehicle.
Collision and comprehensive insurance exclusions
Comprehensive and Collision are partially complementary because both exclude much of what the other cover. Collision covers damage caused by accidents, whether with another vehicle, tree, or other object, but excludes most non-collision damage. Comprehensive covers damage from falling objects, vandalism and more, excluding damage from collisions. If you are to blame for an accident that damages your vehicle, accident insurance can help cover your repair costs. If your car falls from a branch while parking, comprehensive coverage can help pay for the repairs.
Generally, auto policies follow the vehicle, meaning if you give someone else permission to drive your car, your auto insurance will generally stay in place and cover them. However, there are nuances and it is possible to exclude certain people from your policy. There are a number of reasons for this, but one of the most common is to reduce premium costs by excluding a high-risk driver who lives with you. This driver can be a teenager, a roommate, or even a spouse. However, not all states allow you to designate excluded drivers.
Exclusion of family members
Some policies exclude claims involving two members of the same family or household. If, for example, you have an accident with an insured person from your household and this is considered to be at fault, you may be denied the right to take legal action or claim insurance benefits.
Exclusion of named drivers
Perhaps the most common way to use driver exclusions is to name the driver and list him or her in the “Exclusions” section of the policy. This method is generally the easiest because the insurance policy does not cover that particular person. Named exclusions can help keep awards lower if you have a high risk driver who would otherwise have access to your vehicle due to circumstances such as sharing an apartment with them.
Depending on how a car accident happens, some guidelines may rule out the harm. Fully comprehensive insurance, for example, does not cover collisions and collision insurance does not cover vandalism. Many types of coverage place particular emphasis on what types and causes of damage they cover, excluding all others.
Natural disasters are often excluded from many types of auto insurance. It varies between companies and policies, but disasters such as floods, earthquakes, wars and civil unrest could be excluded from coverage. However, many such disasters are included in comprehensive auto insurance policies.
Deliberate exclusion from acts
Insurance policies cover accidents and are not liable to pay benefits if the damage is caused deliberately by the policyholder. For example, if a driver intentionally hits someone with their vehicle, their insurer is unlikely to pay the accident costs claimed in the documentation.
Other car insurance exclusions
Many things are excluded in insurance policies, although this will vary depending on the plan, company and circumstances. Fortunately, certain policies and types of insurance can help cover many types of exclusions.
- Exclusion of personal property: Personal property is excluded from many types of auto insurance. Some policies cover the vehicle but not the personal effects it contains.
- Exclusion of company vehicles: Commercial vehicles are often driven more heavily than non-commercial vehicles and pose a greater financial risk to insurers. The differences in usage are one reason some policies exclude the coverage of a personal vehicle during business use. In this case, commercial auto insurance may be required.
- Exclusions for trips abroad: In general, auto insurance purchased in the US is only good within the states. However, depending on the company, you may be able to add temporary coverage for cases when you are driving outside of the country, such as when you are driving. B. to Mexico.
Common motor vehicle insurance endorsements
Also known as the Policy Tab, auto insurance endorsements change your plan in certain ways. Many of these notices can help smooth out exclusions and modify your policy to better suit your needs.
- Carpool insurance: This cover is intended for drivers who use their own vehicles for a rideshare such as Lyft or Uber. These plans combine commercial insurance with personal insurance and offer more protection for passengers and personal property than simple liability insurance.
- Gap insurance: Gap insurance helps you pay off the value of your vehicle in the event of a total write-off. Many policies only pay out based on the current value of a car rather than its original value. The gap insurance fills the void caused by the depreciation of the vehicle over the years that you have had it.
- Roadside Assistance: Roadside Assistance is generally one of the more affordable drivers and covers emergency services, e.g. B. towing your car when it breaks down. These drivers can also take advantage of key roadside services such as changing tires.