Auto insurance is a vast concept.

If you go through the declarations section of your auto insurance policy, you will be left dumbfounded and confused, as what it covers and what’s left uncovered!

Usually, when you buy an insurance policy, the insurer will describe to you in every detail what the policy coverages are. But little do they bring under your nose, the policy exclusions!

In this post, we will discuss in detail what your auto insurance policy doesn’t cover!

Before I head to the main section, I will first describe the general auto insurance coverage offered in the present market:

  1. Liability coverage: In many states, it is the legal requirement to drive a car. In general, Liability coverage pays for bodily injury done to other people and damages done to their car if you are at fault. Your coverage might also include medical expenses.
  2. Collision coverage: Any accident that involves another car, or any fixed object like fences, posts, side rails and anything as such. The accident should hold proof of collision resulting in a damage done to your car!
  3. Comprehensive coverage: Damages done to your car in an event other than any car-to-car or multiple car collisions! These might include animal collisions, hail storm, tornado, vandalism, riots and anything that does not look like a normal car accident!
  4. Uninsured / Underinsured motorist insurance: When your car is hit by another vehicle, whose driver is not enough insured, or is uninsured, then he/she won’t be able to cover your damage costs. But if you have bought an uninsured / underinsured motorist insurance, then your insurer will pay for your damages.
    One such instance could be you falling victim in a hit and run case!
  5. Medical expense coverage: Not considering who’s at fault, this will reimburse your and of other victim’s medical costs, present in your car during the accident!
  6. Personal injury protection: This you can consider being an add-on to your medical coverage. It covers your other medical related expenses. It may reimburse you for rehabilitation expenses, work loss, funeral costs, or replacement services.

Now when you have bought your auto insurance policy, I will outline what a general auto insurance policy doesn’t cover:

Liability coverage exclusions:

The insurer and the insurance policy won’t cover the conditions listed below:

  • If the damages done to the car and the injuries caused were completely your intentins.
  • Any property damage to your car and personal property carried or transported by you.
  • Property that is yours and is under your liability, damaged in an accident!
  • Your auto damages won’t be covered if your vehicle is used for public conveyance!
  • If you are an employer, and one of your employees is injured in an accident whether or not related to your vehicle!
  • If you suffer body injury while employed in the business of selling, repairing, servicing, storing, or driving!
  • If you are using a vehicle that you are not entitled to use. But this policy exclusion is not applicable to your family member if the member is using your covered vehicle!
  • No liability coverage for the ownership or maintenance of any vehicle that is not covered by your policy.
    But your liability coverage might reimburse for your bodily injury, while you are maintaining or in possession of any vehicle owned by your family member!

Collision coverage exclusions:

The insurer and the insurance policy won’t cover the conditions listed below:

  • If damages are done to the vehicle while it is being used for business and public conveyance.
  • Damages due to normal wear and tear, freezing, automatic engine or car breakdown and road damages to tires!
  • ehicle damage due to radioactive contamination, nuclear warfare, and missile, war (declared or undeclared), civil war, insurrection, rebellion and revolution.
  • Any electronic equipment that is not permanently installed in your covered auto. These include radios, stereos, CD drives, GPS, video systems, internet systems, cell phones, and so on!
  • If your auto is damaged due to public destruction or confiscation by civil authorities, courts, and government!
  • Damages done to car equipment used for detection or laser devices.
  • Carpeting, insulation, furniture, decals, graphics and other customizations you have done. These also include spoilers, nitrous, wheel caps or custom fitted alloy wheels, etc!
  • If your auto is damaged while in use for public conveyance or business purposes.
  • If your auto gets damaged while participating in an organized racing or speed contest and competition!

Uninsured / Underinsured motorist insurance policy exclusions:

The insurer and the insurance policy won’t cover the conditions listed below:

  • This policy won’t work for any of your own vehicles that is not insured. The policy will only work if you are hit by someone else’s vehicle, and if that person or the vehicle doesn’t have enough insurance to cover your bodily injury!
  • If your claim goes against the ‘right to recover payment’ of the insurance company, then your expenses won’t be covered. In other words, if you can’t show enough proof of your claim, or if it goes against the declaration of your insurance policy, you will not be reimbursed!
  • If you are hit in an accident during which you were using your car for business purposes or public conveyance!
  • If you are in a vehicle not owned by you or you are not entitled to use the vehicle!
  • The coverage won’t apply to you if you fall under Workers compensation law and / or Disability benefits law.
  • If you are a victim of any accident involving revenge, criminal activity, or exemplary events!

Medical expense coverage exclusions:

The insurer and the insurance policy won’t cover the conditions listed below:

  • If you land in an accident where you are found to be in possession of a vehicle having fewer than 4 wheels.
  • You suffer injury while your vehicle is being used for public conveyance in a residential area or premise or anything as such!
  • If you suffer injury and you fall under worker’s compensation benefits!
  • If you suffer injury while struck by one of your or your family member’s vehicle (other than your covered auto), or while in possession of any such vehicle!
  • If you suffer injury while in a vehicle you are not entitled to use!
  • If you sustain injury while your vehicle is used for business purposes.
  • An accident occurring from nuclear warfare, nuclear reaction, radioactive contamination, civil war, war (declared or undeclared), insurrection, revolution or rebellion, public riots, curfew, or anything as such!
  • Bodily injury resulting from substance abuse, illegal or organized racing, competition, or anything that could not suffice for a normal and non-intentional accident!

That was the rough sketch to help you out in understanding what an auto insurance policy usually doesn’t cover.

Nota Bene: This post / blog / article / information should only be used for educational and knowledge purposes. By no means it should be used to make decisions about any auto insurance policy. It is always advised to check your policy declarations and have a detailed talk with your insurer to know about your coverage and exclusion. These terms and conditions vary from person to person, state to state, and insurer to insurer!

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