Lesser Known (But Still Common) Car Insurance Exclusions

Most people who own vehicles have something called collision coverage as part of their auto insurance policy.  Collision coverage insures the policy holder’s vehicle against damage or destruction regardless of who is at fault for the accident.  This, of course, gives people a valued sense of security about the often significant investment they’ve made in their car.

However, most collision coverage is not nearly as comprehensive as people tend to think.  Most policies contain a number of exclusions which, though not commonly known, frequently operate to bar coverage with potentially disastrous financial implications for the policy holder.  This brief article summarizes some of the most common collision coverage exclusions, knowledge of which will help any vehicle owner stay better protected.

Speed Contests

Many people understand that illegal “street racing” won’t be covered by their insurance, but most policies also exclude LEGAL forms of racing on private courses.  So, if you happen to be a racing enthusiast, know that you’ll be on the hook the entire cost of any damage to your car should you get into an accident the next time you head out to your local track.

Defective Sales

If you sell your car but do not properly record the title transfer and therefore still own the car, most insurance policies will not cover any accident caused by the new owner.  Fill out that pink slip properly!

Transport for Hire

With the gain in popularity of services like Uber, which enable car owners to offer taxi services in their private vehicle for a fee, it is becoming increasingly important to understand that personal auto policies will universally exclude accidents occurring in the course of transport for hire.

Road Rage

Road rage accidents may not be covered if you cause a collision that is deemed “intentional.”  Collision coverage shouldn’t be the only thing stopping you here, though–no rude driver is worth risking your life or someone else’s.

Hopefully, this information gives you a better idea of the limits of your insurance coverage so that you can drive smarter and better protected in the future.