5 Common Exclusions of a Car Insurance Policy

Automotive

When purchasing a motor insurance policy, most people are only concerned about the policy inclusions. People generally don’t go through the exclusions only to face rude shocks at a later stage when something goes wrong. Check out this post to know five common exclusions of a vehicle insurance policy.

When purchasing a motor insurance policy for your 4-wheeler or while renewing it, it is important that you review the different things included in the policy. Similarly, it is essential to go through the list of exclusions. Many things are not covered under a motor insurance policy, and most people only realise them long after purchasing the policy.

In many cases, not knowing these exclusions could also prove very expensive. So, what are some of the standard exclusions of 4-wheeler insurance? Here are 5 of the most popular ones-

  1. Own Damage in 3rdParty Insurance

Motor insurance is of two types- 3rd party liability insurance and comprehensive insurance. If you are going with the 3rd party liability insurance, only the damages suffered by the 3rd party involved in an accident along with you will be covered.

Neither the damages suffered by your vehicle or your bodily injuries are covered under such policies. As a result, it is recommended that you prefer a comprehensive insurance policy. While they are more expensive as compared to 3rd party insurance, they offer enhanced safety.

  1. Loss Due to Normal Wear and Tear

Even with regular care and maintenance, your car will go through wear and tear with time. Even if you have a comprehensive policy, any type of loss due to such normal wear and tear will not be covered by your insurance provider.

Similarly, electrical or mechanical breakdown, failure of breakage, body parts, or chassis due to rust or other natural conditions or damage of the tires without any accident will also not be covered.

  1. Accident Under Influence of Alcohol

If you were found to be under the influence of alcohol or any other type of intoxicant at the time of an accident, the insurance provider would not be liable to pay any damages. This also applies to anyone, other than the insured driving your car with your consent. Keeping the policy exclusion aside, driving under the influence of alcohol or any other intoxicant can also put your life at risk.

  1. Intentional Damage

In the past, there have been many cases where car owners or someone related to them used to intentionally damage the vehicle to get the coverage amount from the insurance provider.

While this used to work in the past too rarely, it does not work at all now. Any kind of intentional damage to the car is not covered in the policy. If the insurance provider has any reasons to believe that the damage is intentional, your claim will be rejected.

  1. Malicious Activity

If you have an underage son or daughter who was driving the car at the time of an accident, the insurance provider will not cover the damages. Similarly, the car insurance company will not cover the damages if you were involved in an accident while you were driving on the wrong side of the road.

Driving without a valid license is also a major exclusion in all the motor insurance policies. Drive responsibly with a valid license and the insurance provider will surely approve your valid claims.

Read the Policy Documents Carefully

It is mandatory for all the insurance providers to give all the details regarding the exclusions of the motor insurance policy in the policy documents. This is the reason why it is said that you should always read the insurance documents carefully before signing.

While some of the most common exclusions are discussed in the post, there are others too that you should be aware of before purchasing a motor insurance policy. So, make sure that you check the website of the insurance provider carefully and read the insurance documents before signing and making the payment.