It may be sounds fair, but every car insurance company leaves enough “wiggle room” to deny coverage in particular situations. Subsequently, you could be stuck with a variety of expenses related to an accident.
Before we go any further and discuss some exclusions that you may not be aware of, remember this one thing: you can protect yourself by requesting a full, official copy of your car insurance policy. At the very least, this will allow you to see with your own eyes what is and is not covered.
Below are 5 exclusions that may apply to your policy:
1. Were You Drinking and Driving at the Time of Your Accident?
If so, you may find that you are not covered for any injuries incurred during an accident. Of the 50 states, 37 of them have an alcohol exclusion law. This means that your insurance company can deny medical coverage for any injury that is a direct result of driving while intoxicated.
2. Unlicensed Drivers are Excluded
Do you make it a habit to loan your car out to friends and family? While there is nothing wrong with this, most insurance companies will not coverage any accident if the person driving is unlicensed.
Does this mean you should ask to see the person’s driver’s license before handing over the keys? This may sound silly, but it will go a long way in giving you peace of mind.
3. Using Your Vehicle for Business
This is an exclusion that many people are unaware of. For example, are you going to be using your vehicle to deliver pizza? If so, may find it hard to believe that your car insurance policy does not cover you during this time. The same holds true if you are using your vehicle for any other sort of delivery service (such as newspapers).
If you plan on using your vehicle for business, no matter what type it may be, double check with your insurer on whether or not you are covered.
4. No Coverage for Upgraded Equipment
Has your car be stolen? While you may be covered for theft of your vehicle, this may not cover any custom equipment – such as speakers or an alarm – that you have installed after market.
5. An Intentional Moment of Craziness
Unfortunately, road rage is a growing problem in today’s day and age. Due to higher stress levels, many people are taking out their aggression on the road. Even more so, some people are going beyond verbal abuse.
If you intentionally cause damage to another vehicle or property, you cannot expect your car insurance policy to come to the rescue. Simply put, if you intend to cause damage it is excluded from being covered.
Many people never think twice about some of these exclusions. Instead, they automatically assume that any time they are driving that they are covered by their insurance policy. As you can see, this is not necessarily the case.
It is worth noting again: review an official copy of your policy so that you are aware of what is included as well as which exclusions are in place.