Auto Insurance Talk

Car Insurance Exclusions and Limitations

In the US and elsewhere, once you purchased a car it's automatic too that you be given an auto car policy. This policy covers two type of loss or protection for you; No fault Car Insurance coverage and the so called comprehensive car insurance policy. The latter will cover loss arising from collision or contact with another person and as the name suggests it is not your fault because it is accidental. This will indemnify the person you accidentally bumped and other damages to property you met. The limit of compensation would vary from state to state, certainly no payment will be made on drunk drivers and unauthorized drivers.

The comprehensive car insurance policy on the other hand deals with loss or damage you encounter on your own vehicle. The title says it's comprehensive but take note it is a misnomer because it does not cover everything. It has its own car insurance exclusions and limitations which will be discussed hereafter.

Wear and Tear. This means your policy does not cover your car's normal trouble. Example rust on the hinge door, once you have it repaired it will not be reimbursable but when damage is brought about by collision then you can make a claim on it.

Mechanical Breakdown or Parts Failure. Car transmission requiring rebuild or replacement is not covered however when damaged in a car accident or other legitimate auto claim it is covered. But when trouble is mechanical breakdown you may look into the various warranty cover attached when you bought the car.

Aftermarket Parts and Equipments. A common example of this when a non-factory installed stereo system is stolen out of your car, this will not be covered. However, insurance carrier has a provision for this; it must be attached as endorsement in your policy that a stereo system is installed in this case.

Damage Caused Intentionally. You cannot make a claim on damages to your vehicle you intentionally made, otherwise once discovered you will be charge on insurance fraud.

Damage to Tires. Damage to tires per se is not covered by comprehensive policy, unless again when the vehicle itself is also damaged.

Nuclear Risk Explosion. It does not cover risk when accident occurs as a cause of nuclear explosion.

Bear in mind though that the enumerated pieces of information above are only exclusions and limitations, there are a lot more things that insurance carrier covers, and they simply cannot afford to take care of every little thing for the simple reason that owners cannot afford to pay the premium when doing so. Suffice it to say that misnomer or not getting comprehensive car insurance policy will do a lot of good than harm in a car owner. The very reason why insurance was introduced in the first place is for people not to bear all the loss.