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Car Insurance Exclusions Are Important For Policy Holders To Know About

Many people think that there are car insurance loopholes that they can use to get a denied car insurance claim overturned on appeal. One case in question involved a woman who had an exclusion listed on her car insurance policy. The problem became that she allowed her son who was age 16 to drive her car even though she had an exclusion in place which banned drivers under 21 from using the car.

The teen boy got involved in a serious car accident which totaled his mother’s car and she could not get the claim accepted. The monetary damages were not paid for so she had to foot the bill and wound up being sued by the other driver that her son hit and injured.

Some people think that because a person lives in their household that they are automatically covered if they borrow a vehicle and end up getting in an accident. However, car insurance companies are very careful with the language that they use when underwriting their insurance policies.

What an exclusion is, is basically a disclaimer where policy holders specify who can and cannot driver their vehicle. The people who are listed are then barred from insurance coverage. For example, a wife who excludes her husband who has a record of drinking while driving offenses cannot ask to have a claim paid out for an insurance claim when he steals the car and crashes it.

It is important for people to understand that having these exclusions in place can actually benefit them. If people list multiple people on their car insurance policy that will be covered then this could be a huge mistake. Each household member who is covered will have their driving record examined so anyone could add additional risk to the insurance policy.

It is crucial for policy holders to list the drivers that they think need to drive their cars. Lending a car to someone else can be very risky. The driver may not use the car responsibly and could cause an automobile accident.

It is also important to make sure that if your car is used for business purposes that this is clearly listed on the insurance policy. Some teens take on part time jobs delivering takeout food to customers. If they borrow their parents’ cars and end up getting into an accident while on the clock then the claim could end up being denied.

In today’s day and age, it is important to read the fine print of your car insurance policy. There can be a lot of clauses in these policies that people are unaware of. It is a good idea to reach out to an insurance agent to get all of the applicable information.