Did you know you could accidentally cause your car insurance policy to become void? That worst part is that, if it did, any premiums you’ve paid till date could go to waste, as your chances of making a successful claim would be significantly reduced. However, you can avoid all of this by doing one simple thing – reading the exclusions of a car insurance policy. And we’ll make it easier for you to do this by highlighting what’s commonly excluded from a motor insurance policy – hopefully, this will help you make a successful claim if and when the need arises, which we hope it doesn’t.
Exclusion No. 1 – Alcohol & other intoxicants
This is probably one of the most important exclusions of your car insurance policy. Having said that, it also happens to be one of the biggest reasons why a number of claims get rejected. So matter what, never drive or let anyone drive the insured vehicle under the influence of alcohol. If an accident were to occur, you’d have to pay for the repair costs yourself.
Exclusion No. 2 – Consequential damage
Damages that are a consequence of your actions could be excluded from the cover of your insurance policy. A good example of this is when we see an oil drip and ignore it, which in turn causes the gearbox to fail – it’s unlikely, but it could happen. So if you see oil drips or any signs that your car needs care, it is best you visit the service center. In most cases it will be a small issue, repairing which could save you from huge expenses.
Exclusion No. 3 – Policy expired
Putting off the renewal process of your car insurance policy could result in your policy to lapse and then expire. It is best that you set up an electronic clearing system that updates to when your payment is due and then deducts the amount on its own. This will ensure you never have to face a rejected claim because of a forgotten renewal date!
Exclusion No. 4 – Not abiding by road rules & regulations
Underage driving, using the wrong side of the road, driving up a one-way street, etc. might lower your chances of a successful claim. So remember to always drive safely and maintain road rules and regulations while driving.
Exclusion No. 5 – War
Your policy might not cover a war, radiation, terrorist attacks, hostile invasions, etc. While all of these are highly unlike events, it still needs to be known that damages occurring to your vehicle due to such events will not be covered by your insurance policy.
Exclusion No. 6 – Improper use of the vehicle
If you have registered your car as a personal vehicle, you will not be covered for an accident that occurs while using the car for commercial purposes. Both personal & commercial vehicles have separate types of insurance policies and you should opt for the appropriate one depending on your usage.
These were some of the common exclusions of a car insurance policy. We hope these pointers ensure you always have a successful claim process, if and when you need the need arises, which again, we hope doesn’t.
Good luck and drive safe, it’s very rewarding – read about NCB you’ll know why.