Drivers who consider that car insurance can protect them against anything are misinformed and should do some research about car insurance exclusions. Just like any other service, car insurance has terms and limitations. Some of the car exclusions are quite common and most driver should be aware of.
The most common car insurance exclusions are the following:
Damage caused by unregistered drivers.It’s quite common for a driver to borrow the car to a friend or a relative. In most cases, these friends or relatives are not registered in the car insurance contract. If any of these unregistered friends or relatives is at-fault in a car accident, then the insurance company can void the insurance policy and deny any claims.
Using the personal vehicle for business. Most drivers declare that they are using their vehicles for personal purposes. However, some drivers are using their cars to conduct business. Some policyholders are using their vehicles to transport goods or going to work while others might use their personal cars for ridesharing activities. Drivers that cause accidents while being involved in a commercial activity can have their claims denied by their insurance providers.
Unapproved customization. Drivers that are modifying their vehicles without announcing their insurers, might get in trouble. The customized parts will not be covered by the insurance provider, and in many cases, the entire vehicle will become uninsurable. Most car insurance contracts require the policyholders to announce their insurers if they plan to modify their vehicles. If they fail to do that, then the insurance contract can be voided.
Consequential damage. This type of damage refers to other loses or damage that resulted from a claimable event. For example, drivers can lose their wages if they are not capable to drive to their workplace as a result of a car accident. This type of damage is not covered by car insurance companies.
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