Common Exclusions In An Automobile Insurance Coverage

Adequately covered automobile insurance is important for all drivers. Motor insurance policies usually offer coverage at 2 levels. First would be coverage for third party damages. This feature in mandatory in most jurisdictions and protects 3rd parties for medical costs, life insurance and property if the driver of the insured vehicle is found to be at fault. The second level of coverage includes medical and life coverage for the driver of the insured vehicle as well as damage or loss to the vehicle due to accident, fire, theft, and other exigencies. While most insurance policies will provide coverage on a wide range of issues, there are some common issues that the insured vehicles are not covered on. Some of these common exclusions are listed below:

- Alcohol exclusion laws: Most insurance companies will deny claims for drivers who were driving under the influence of alcohol while the accident occurred. Passed in 1040, the alcohol exclusion laws aim at discouraging people from driving after they have drunk alcoholic beverage. More than 14 states prohibit insurance providers from processing alcohol inclusion claims.

- Wear and Tear: A vehicle like any other machine undergoes wear and tear from regular usage. This wear and tear is not covered in most car insurance policies. This means that normal repair work on your car like rust spots, loose hinges, oil change, damaged wipers, and servicing will not be covered. However, if any of the above mentioned damages occur due to an accident, then the repair costs will be covered under your car insurance policy.

- Intentionally caused damage: If you have caused any damage intentionally, you may not be able to claim it under your motor insurance policy. Most insurance companies carry out a detailed inspection before processing a claim. If during this inspection it is found that you have intentionally caused the damage you are claiming for, your claim may be denied and you may even be charged with insurance fraud.

- Parts failure or mechanical breakdown of the car: Breakdown of the car due to mechanical or parts failure like broken axles, blown fuses, drained batteries or break failure are not covered under most insurance policies. However, if any of the above mentioned issues are caused due to an accident, then it is covered.

- Aftermarket equipments and parts: Any part that is added to the vehicle and which not a part of the car's inventory, as published by the manufacturer and is added to the car from the open market is not covered under most motor insurance policies. This is because these parts may interfere with the optimum performance of the car as intended by the manufacturer and to the design standards to which the car was built. However, many insurance providers offer special coverage packages in which aftermarket equipments and parts are covered. If you want such coverage, you would need to purchase policies especially designed to cover such additions and the premiums of such insurance covers may be substantially higher.

Apart from the above mentioned basic exclusion, there are several other exclusions like damages due to nuclear risk exposure etc. that your insurance provider may not cover you on. Therefore it is strongly recommended that you read the complete terms and conditions document in detail before you sign on the dotted line.