June 22, 2024

10 Car Insurance Exclusions You Might Not Be Aware Of


Having a car is perhaps a necessity these days, rather than an item of luxury. For a car owner, it is necessary to have proper insurance of the vehicle which he can get from any of the service providers in the market. However, with the increased competition in the market, it is essential for one to check the policy well. After all, there are a number of exclusions present in different Car Insurance Policies which one may not be aware of.

Here are some of the exclusions mentioned for the reference of such insurance buyers

  • The validity of the driver: Here one needs to note that as per the laws only those who are eligible for driving can be allowed to drive a car and for that one needs to have a valid driving license. In case the car is driven by a person without a driving license, and it meets an accident, the service provider can refuse the claim. Therefore, one needs to be highly alert on this point while offering the car to be driven by anyone.
  • The car is not in perfect condition: If the car is not in a condition which can be said perfect for driving and if it meets an accident, the claim may be denied. The reasons here can be worn out tyres, poor brakes, a faulty engine or anything that can make the car not fit to be driven. It does not matter if the accident has any direct relation with the concerned condition of the car or not; the claim can be straightaway rejected on this ground by the service provider.
  • If the car is a modified one: The mechanism of the car is created by the maker in best of its interest, and hence any modification may have an impact on its performance. For this reason, if any modifications have been made in the car, one need to report the same to the insurance service provider and get the same approved. In case of minor modifications, the service providers usually do not object, but in case of a major one, the same needs to get checked. Else it can lead to rejection of claim if the car meets an accident no matter whether such modification has any role to be played or not.
  • If the car is used for any other purpose: It is an important exclusion that every buyer needs to note. If the car is used for any other purpose than specified, and if it meets an accident, the claim can be rejected. One should not need to overload it with any luggage which could obstruct the view of the road to the driver. Likewise, if it is used for racing or any such activities, the claim can be rejected. If the car is to be used for personal use, it cannot be used for commercial purpose such as moving passengers or transporting items.
  • If it is towing an overloaded vehicle: In this case, one may have to face trouble even if he tries to help someone. Here one needs to be prudent and see if the concerned vehicle is overloaded or not. If it is so, he does not try to pull it as in such case if the car collides or meets an accident in any way, his claim for the insurance may get rejected due to this help only.
  • Use of wrong fuel: If your car runs on petrol, it needs to have petrol as fuel and not anything else. If the car is a hybrid one, the same has to be approved by the insurance service provider. In new hybrid vehicles, it is already notified on the papers. Still, if there is any change such as the installation of new CNG kit, you must notify the same to the insurance service provider, and in the absence of the same, the claim may get rejected.
  • If the car status is changed: In case you have started your car for commercial use, you need to get the same approved by the concerned authority as a commercial vehicle and inform the service provider for the same. If the car known for personal use is used for commercial purpose such as a Naburn Taxi, the claim may get rejected.
  • Effects of medicines: It is known by everyone that you cannot drink and drive; but there are also some medicines which can make you feel drowsy and affect your concentration as well as decision making. If at the moment of an accident, you are found under the effects of such medicines, the claim can be rejected by the service provider on this ground.
  • Don’t love to drive fast: The insurance is provided to safeguard the interest of the vehicle when it is used in the standard situation and by authorized people keeping the regular usage of the same in mind. If you love to drive the vehicle at the optimum speed or at any speed which can be called unusual, the insurance service provider can reject the claim on the ground of over-speeding.
  • Take proper security measures: If there is any unforeseen condition where the car is handled properly yet it got damaged, insurance is there to help you. However, if any costly item is stolen from the car, and the reason for the same may be the owner forgot to lock the car, the claim can be rejected. One needs to take prudent care while driving or parking a car, and in case of any malfunction of lock or security measures, the claim may not be allowed.

So these are some of the exclusions that people usually do not know while going for any insurance plan. If they are given proper attention, one can have the best policy for his car.

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