Exclusions can be associated with a person, property, location, peril or specific situation.
These limitations to your coverage are important to know so that you don't end up in a situation where you find out after an auto accident that you have no coverage -- or have voided your policy. (Remember if your policy doesn't cover you, then you'll be stuck paying out-of-pocket usually.)
Physical damage coverage exclusions
Collision and comprehensive coverage are the physical damage coverages offered by auto insurers. While liability insurance covers those that you damage, collision and comprehensive cover your own vehicle if it's damage.
Exclusions under this portion of the policy can be similar in many ways to the restrictions listed in your liability portion of your policy. Typically, collision and comprehensive coverage exclusions include loss or damage due to:
· Wear and tear
· Mechanical or electrical breakdown or failure
· Road damage to tires
· Catastrophic events - radioactive contamination, nuclear weapon discharge, war, etc.
· Destruction or confiscation by government or civil authorities
· Using your vehicle for livery or delivery purposes
· Vehicle being used for racing purposes
· Intentional damage
· Vehicle used in personal car sharing programs (some insurers)
· Personal items that are damaged in your vehicle or stolen from it aren't covered, and most policies specifically mention the exclusion of coverage for losses to:
· Any electronic equipment that is not permanently installed.
· Custom equipment (or is covered to a specific minimal amount -- such as $2,000) unless you've added a custom parts and equipment endorsement to your policy.
If a vehicle is excluded from liability coverage, then typically it's also unable to obtain physical damage coverage. However, there are some vehicle that insurers allow to obtain liability but not collision and comprehensive -- such as vehicles with a salvage or rebuilt title.
Besides exclusions, a policy may have other restrictions to look for.
To be aware of your exclusions and restrictions, read your policy and then contact our agency if you have questions.