Auto insurance exclusions explained

If you are a first time auto insurance buyer and have received your insurance policy while getting your new car from the dealer's office it is quite likely that you have the so-called full coverage auto insurance. Also called comprehensive or no-fault auto insurance, many inexperienced car owners tend to think that such policies provide protection in all situations when auto insurance is required. However, it's quite far from the truth and you have to be a bit cautious about the contents of such policies.

Every policy has specific provisions and coverage types included into it, and full coverage policies are not an exception. But apart from the evident provisions there are also specific exclusions and limitations that are used to denote situations when insurance coverage does not apply. Such exclusions are common for both simple and full coverage policies, however you should certainly review your policy in order to see which exclusions are included into yours. Here are some of the most common exclusions found in auto insurance policies:

Breakdown or parts failure. If specific parts of the car get damaged during an accident they are typically covered by the insurance policy. However, if some parts of the car break on their own or fail due to a malfunction, there's no sense in filing an insurance claim since the insurance company won't deal with such costs. Still, you may look into the warranty you got with your car for a repair or part replacement.

Aftermarket parts and equipments. Any parts you replace or equipment you install into your car without noticing the insurance company won't be covered if it’s stolen or damaged in an accident. You are usually required to include these items as endorsements into your current policy in order to get them covered.

Intentionally inflicted damage. If you have caused damage to your vehicle or any of its parts on purpose and filed an insurance claim you will be certainly denied and are likely to be charged with insurance fraud in case you have misinformed the insurance company.

Tire damage. Tire damage resulting from wear and tear will not be covered by any insurance company unless it has caused damage to other parts of the vehicle or led to an accident.

There may be other exclusions and special limitations concerning your auto insurance covered and the best source to learn about them is your actual auto insurance policy. So make sure to read carefully through the contents of your policy before even signing it.