Car Insurance Exclusions – What Does Car Insurance Not Cover?

You went to the showroom and bought a brand new car. Isn’t it a great feeling? But you can’t drive the car home until you have a valid car insurance with you. You can buy car insurance online yourself or get the car insured with the insurance company your car dealer has a tie up with. To start driving your dream machine, you need to get your car insured and read the terms and policies. But there are certain terms that are in asterisks. You need to read them more carefully. They are the exclusions of your insurance policy.   Let us see an example below:   Anand Shrivastava from Mumbai bought his new car and decided to give a party to his friends. After the party got over, Anand’s friend Rahul wanted to drive his new car. Anand readily agreed. While everything was going smoothly, another car from the wrong side came in full speed and hit Anand’s car from front. Though the two were safe, the bumper got damaged. Thankfully Anand has his car insured and he went for claims. His plea was rejected! Reason? Rahul didn’t have a valid driving license and Anand didn’t know about it. Anand had to bear all the expenses from his pocket.   Seeing the above mentioned scenario, there are many such exclusions in the policy wherein your car won’t be covered. It is important to note that own damage is covered only under comprehensive car insurance policies and not third party liability plans. Your car insurance policy is designed to cover you and your vehicle from any damage when you need it the most. But there are a few situations when the insurance won’t cover your claims and it is very important to know about them so that you don’t end up paying for your damages from your own pocket like Anand. The following are situations you should be aware of:   1) Loss due to wear and tear   Any loss occurring due to normal wear and tear of the vehicle will not be eligible for a claim. Similarly, any form of mechanical or electrical breakdown, failure of chassis, or body parts, or breakage due to rusting or other weather conditions will not be considered for a claim.   2) Damage to tyres, electrical equipment or electronics   Tyres are going to wear out with constant use over time. As a result, they will not be eligible for any claim. Similarly, electrical equipment in the car can get damaged due to severe weather conditions, short-circuit, or infestation of rodents. Such damage will not be compensated.   3) Damage incurred if the insured is driving under the influence of alcohol   No insurer will offer cover for damages caused to the car due to an accident, where the person is driving under the influence of alcohol or any other intoxicating substance.   4) Any injury or property damage caused intentionally   If the insured person has intentionally caused damage to a person or property, then he will not get any form of reimbursement under a car insurance plan. Similarly, it will not cover damage caused to the insured’s property.   5) Damage incurred due to war and other perils   Any loss caused to vehicle due to war, bio-chemical attack, or fire due to nuclear explosion and related events will not qualify for a claim.   6) Damage due to racing   Any kind of collision damage or property damage caused due to organized racing will not be cover under a car insurance policy. Similarly, it will offer limited cover or no cover at all for damages incurred if the vehicle is used in sharing programs.   7) Driving without a valid driving license   As mentioned in the example before, if someone is driving without a valid driving license and the car meets with an accident then the claims will not be reimbursed.   Now that you know the exclusions of your car insurance policy, do buy an insurance that satisfies your needs. If you are looking for car insurance, you can take a look at Bajaj Allianz’s Car Insurance Policy. It is one of the most comprehensive car insurance policies in India.