The Most Common Car Insurance Exclusions

If you’re looking for the perfect car insurance policy, make sure that you know enough about what you’re getting before purchasing it. Whether you have collision coverage or comprehensive coverage, pay a lower premium, or have a tax deduction on your health insurance, you may need to know more. When you get an auto insurance quote, it’s just as important to ask about what your auto policy leaves out.

Most insurance rates include a specific limit for claims, usually separated between bodily injury and property damage. According to state law, some vehicle insurance will vary according to your credit score, driving record, and annual mileage. Your car insurance premium and coverage options also change according to whether you have an at-fault accident and whether you’re signing up for personal or commercial auto insurance. To see what some of the most common exclusions are, read on.

1. Property or vehicles that you own.


Most auto insurance will include collision coverage, which pays for any property damage that arises from a collision. If you hit another car, crash into someone’s fence or damage property of any kind, this is what you would use. Like any insurance, the amount one can claim depends on the limits in the policy. Since owning the property you damage is an exclusion, you won’t be able to claim anything if you crash into your own garage door.

Auto insurers offer different rates, discounts, and deduction options depending on the policy you pick and the vehicle you’re driving. To ensure you get the best rates, and for peace of mind, look up the different types of personal property exclusions before you pick a policy. An excellent way to do this is to compare auto insurers and car insurance policies online before purchasing one. Proper research on a platform like iSelect will help you avoid any surprises when you attempt to file a claim.

2. You’re not driving the right vehicle.


If you’re living out of an RV, you need to consider adding more coverage to your auto policy. Your auto insurer will usually cover your trailer, but there may be a different deduction and coverage level. For example, depending on state law, you may need personal injury protection or liability coverage. Your car insurance premium may not cover any belongings you store within the trailer if it’s not on home base, so you may need to add an extra inclusion there as well.

If you’re vacationing at a National Park, you need to check the laws so that you have liability as well as financial protection included with your insurance coverage. RV and trailer insurance also often includes travelers insurance, depending on where you’re driving. Some auto insurers also have a different exclusion for vehicles with fewer than four wheels, boats, and other mobile homes.

3. The driver is a family member.

Imagine that you’re teaching your child how to drive, and they accidentally knock over your mailbox or damage your garage door. Since the accident involves property damage, you assume your vehicle insurance will help you pay to fix it, so why won’t your insurance company let you file a claim? A common exclusion includes coverage for family members who live with you.

Regardless of your claim limit, most auto insurers won’t cover damage to your belongings, personal property, or even medical expenses for bodily injury when a family member is driving. Of course, some coverage options are available for family members, so make sure you find out about your specific insurance policy’s inclusions. It’s important to discuss this exclusion with your insurance company, so you know enough about it before you attempt to file a claim.

4. The accident was on your property.


If you’re driving your car on a property that you own and crash and injure yourself, you would assume that your insurance policy covers medical expenses. Unfortunately, this is one of the most common exclusions of an auto insurance policy. Even though bodily injury usually comes under personal injury protection, it doesn’t count towards a legitimate claim if it happens on your property.

5. An employee caused the accident.

If your employee gets an injury on the job, you’re probably not going to be able to file a claim for a vehicle-related accident on the job. One of the most common things left out in your insurance policy—usually for commercial car insurance—is coverage for accidents caused by employees. It’s because your workers’ compensation insurance policy provides coverage for this, so it’s not included coverage within your auto insurance.

These are just some of the most common situations where your coverage may be excluded. Always ask your agent about your specific policy before signing up.

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