Common Auto Insurance Exclusions

Insurance policies always have a list of exclusions that can be found in your policy. Car insurance policy exclusions are clauses that void coverage under specific circumstances. You never want to think you are insured for something that is excluded in your policy so it is important to read through your policy documents and fully understand what your insurance coverage does and does not cover.

Types of Exclusions in Auto Insurance Policies

Exclusions can be associated with a person, property, location, peril, or specific situation. If your insurer deems that a claim resulted from one of these exclusions, they will not pay the claim.

Comprehensive and Collision Exclusions

If you have comprehensive coverage and collision coverage on your vehicle, you may think that any damage to your car is covered regardless of how it occurred, but this is not true. Car insurance companies will not pay for damages to your car due to:

• Intentional damage that you cause to the vehicle

• Normal wear and tear, including tires

• Mechanical failure

• Damage to electronics in an accident that were not factory-installed

• Personal items stolen from your car

Liability Exclusions

The liability portion of your car insurance policy consists of a bodily injury liability section and a property damage section. These coverages pay other people you may injure or for property you may damage in an accident, but not every liability situation may be covered by your policy.

Business Use: Your personal auto insurance policy may not cover damages that happen while you use your vehicle for business purposes. You may need to add business use to your policy or purchase a separate commercial auto policy to cover the car while you use it for your business.

Delivery Driving: If you use your car to deliver food or other items for a profit, your personal auto insurance policy may not extend to any liability claim that occurs while you are working in this way. To ensure that an accident occurring while you're working as a delivery driver is covered, you should secure a commercial auto insurance policy or secure coverage through your employer.

Illegal Activity: If you have an accident while doing something illegal, your car insurance company may deny the resulting claim.

Racing: If you have an accident while using your vehicle to race, your coverage may not apply.

Rideshare Driving: If you use your vehicle to drive passengers through a rideshare such as Uber or Lyft, you must notify your car insurance company to make sure that your policy includes rideshare insurance. If you do not and you have an accident while driving passengers for profit, your insurer may deny the claim.

Medical Payments Exclusions

If you elected to purchase medical payment coverage on your car insurance policy to protect you and your passengers if you are injured in an accident, the coverage may not apply in some cases.

Injury to an employee: If you allow your employee to drive your car and they are injured in an accident, your medical payments coverage will most likely not apply. When an employee is injured while working for you, whether driving or not, a claim for their injuries would need to be submitted to your workers' compensation insurance carrier.

Living in your vehicle: If a car insurance company discovers that you are using your car as a residence, they may deny coverage.

Driver-Related Exclusions

An excluded driver is someone who is not covered by your car insurance policy. You can exclude or prohibit members with bad driving records or household members who have their own vehicle and insurance from driving your insured car. When a driver is specifically excluded from your car insurance policy, your insurer will not cover any claim that results from an accident in which they were driving your car. Some states may not allow exclusions, so it’s essential to check the rules.

Maintenance and Negligence Exclusions

Car insurance doesn’t provide coverage for maintenance expenses, including regular maintenance such as oil changes or the replacement of tires or brakes. According to the National Association of Insurance Commissioners, you will have to pay for maintenance expenses yourself. Regular maintenance is essential to prevent costly repairs.