Exclusions in auto insurance often prove to be the subject of complex problems for the insured. Lack of knowledge of what their car insurance does not cover will be a real challenge. The few exceptions to auto insurance are tricky issues to understand.
Let’s take an example to help you better understand exclusions in auto insurance.
Timothy bought a Honda CRV one year ago with his car insurance. However, the car is now missing stolen by his private driver.
Timothy was very surprised, when he filed a claim for the loss of his car, the insurance company informed him that the insurance did not cover the evil deeds committed by the people who worked for him and that these conditions were clearly written in the policy.
We firmly believe that there are as many non-insurance people as Timothy out there. They do not understand and understand what is contained in their car insurance policy, especially in the exclusion section.
As well as Timothy’s case, here are some exceptions to car insurance that most insured do not understand well.
Riots and Natural Disasters
Your car insurance does not cover damage caused by riots, such as riots, brawls, demonstrations, and so on. In addition, insurance also does not cover damage resulting from natural disasters, such as floods, earthquakes, landslides, and so on.
Immediately take preventive steps to protect and keep your car away in case of mass riots and natural disasters.
Another best way is to ask for additional coverage guarantees for the two exceptions. By adding a little premium paid, your car gets additional extraordinary protection against these two exceptions.
Your Personal Items
If your car is damaged or burglarized, the insurance company will pay compensation for the damage to your car but not for losses resulting from theft or damage to your personal belongings stored in the car, such as laptops, cell phones, or other valuables.
So, never leave your valuables in the car!
Your car insurance also does not cover additional non-standard accessories to your car. Other types of non-standard accessories include sound systems , audio & entertainment systems , GPS devices, non-standard wheels , baby seats, and so on.
So, when your car is damaged or lost, the insurance makes an exception for these additional accessories so that there will be no repair or replacement.
It is better for you to report any additional accessories that you install on your car.
The good news is that insurance will receive additional accessories without the need for additional premiums even though the limit is limited, that is, if the value of the additional accessories is only 5% of the price of the car or a maximum of a certain value.
You park your vehicle on the side of the road to stop by for a moment to buy something or you park in a safe place but forget to lock the car and leave your parking ticket in it and it all ends the same, i.e. your car is lost.
Trust me, your car insurance will reject these claims on the grounds of negligence or carelessness.
So, always use caution and beware of avoiding incidental exceptions of this kind.
When you cover your car with insurance , the fields that you will complete on the form are for personal use.
However, in reality you use the car for commercial purposes, such as being used for car rental, picking up school children or employees, online taxis, and so on.
If this happens, whether you realize it or not, all forms of loss that occur when used for commercial purposes will not be covered by insurance. In fact, insurance can immediately cancel your policy unilaterally.
Don’t make assumptions
It is always recommended that you study every detail of your car insurance policy until you understand. There may be exceptions which turn out to be implicitly more complicated than the explicit sentence. So, never take the risk of making assumptions.
Ask an expert if you don’t understand.