Why You Should Not Ignore The List Of Exclusions In Your Car Insurance Policy

When you buy a car insurance policy, it is crucial to understand its fine print. One aspect that should never be overlooked in this regard is the list of exclusions. Every insurance policy has a list of events, scenarios or conditions where the policy’s coverage may not apply. These are commonly called exclusions. While the inclusions of the plan are often explicitly shown, the exclusions may not be visible to you unless you read through the policy wordings carefully. Not being aware of the exclusions can lead to problems in the long run, potentially leaving you without the protection you thought you had.

What Are Common Exclusions in A Car Insurance Plan?

As per the policy wordings of most car insurance policies, the insurer may not hold responsibility for the following: 1. Any unintentional loss, damage, or liability that occurs outside the geographical area specified in the policy. 2. Any claims resulting from contractual obligations. 3. Any unintentional loss, damage, or liability that occurs while the insured vehicle is: a. being used in a manner not in line with the 'Limitations as to Use' specified in the policy or, b. driven by or in the care of someone other than the specified driver in the Driver's Clause. 4. Any unintentional loss or damage to any property, its resulting expenses or losses, or any indirect loss. 5. Normal wear and tear and general ageing of the vehicle (depreciation) and consumables like tyres and tubes. 6. Any damage caused to the vehicle by a person driving it under the influence of substances like alcohol or drugs. 7. Any damages caused by a person driving the vehicle without a valid license. 8. Any liability, whether direct or indirect, caused by or related to ionizing radiation or radioactive contamination from nuclear fuel or waste, including self-sustaining nuclear fission processes. 9. Any unintentional loss, damage, or liability directly or indirectly caused by or related to nuclear weapons materials. 10. Any unintentional loss, damage, or liability, whether direct or indirect, caused by or related to war, invasion, acts of foreign enemies, hostilities, warlike operations (before or after war declaration), civil war, mutiny, rebellion, military or usurped power. In case of a claim, the policyholder must prove that the damage/loss is not related to the events specified in the above point. Otherwise, the claim process may not go ahead. Please note that the above exclusions are not exhaustive and are applicable for comprehensive car insurance. The list of exclusions for third party car insurance will be more extensive.

Importance of Reading the Exclusions in Your Car Insurance Policy

While knowing what is covered is very crucial, it is equally important to read through the exclusions list as well, for the following reasons:

It helps avoid unpleasant surprises

Imagine that you raise a claim to replace your car’s tyres that are now worn down due to age. However, you come to know that such coverage is not provided in your car insurance plan. This can result in a loss of time and energy on your end. By knowing the exclusions of your policy beforehand, you can avoid such unpleasant situations.

It can help you curate the right plan

If you read through the exclusions in a policy, you will have a better idea of whether the particular coverage suits your needs. This way, you can decide whether you want to opt for add-ons. For instance, most insurance plans do not cover damage to the car’s engine. However, if you opt for the engine protector add-on, you can raise a claim in case of damage to the car’s engine and its gearbox.* Claims are subject to terms and conditions set forth under motor insurance policy. You can use a car insurance calculator to know what the premium of your plan could be, with or without the add-ons.

It can help with compliance

Being aware of the exclusions in your policy can help you better comply with the terms and conditions of your policy. This can help you avoid any issues that may arise due to non-compliance. For instance, you can exercise caution when giving your car to someone else to drive, since damages incurred during such situations may not be covered.

It provides peace of mind

Most importantly, knowing what is covered and what isn’t covered by your car insurance policy can give you peace of mind to a great extent. You can drive your car with the assurance that you have a clear understanding of your coverage and that financial setbacks will be taken care of in most cases.* Claims are subject to terms and conditions set forth under motor insurance policy. Hence, one must think of exclusions to be equally important as inclusions when buying a policy. The exclusions of a car insurance policy can be accessed online via policy wordings and brochures of the plans. To buy car insurance online, click here.   *Standard T&C apply. Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.