Auto Insurance: When You’re Not Covered
We’ve already discussed who is covered under a personal auto insurance policy. Now let’s look at when you’re not covered under your policy. Some of these exclusions for coverage may seem ridiculous, but your insurer wouldn’t bother to exclude them if they never occurred.
• Racing – you are never covered for liability resulting from preparing for, practicing or actually racing your car. This includes speed contests where you are not competing directly against another vehicle.
• Other vehicles you own or that are available for your use regularly which are not listed on your policy. This exclusion seeks to ensure you pay premiums for all cars you own or regularly use by not covering your liability for them (unless you specifically list them on your policy). If you drive your roommate’s car everyday, you would need to be covered under your roommate’s insurance for liability.
Also, if you cause an accident while driving a car you own that is not listed on your policy, you wouldn’t have coverage. Please note, if the car you are driving is temporarily replacing your owned car which is listed, or a new vehicle you purchased, you have coverage for a specified amount of time, usually not longer than a couple of weeks. Always try to inform your insurer of new purchases or temporary substitutes as soon as possible.
• Similar to the above, vehicles owned by a family member that are regularly made available for your use, unless they are listed on your policy, are not covered for liability.
• Liability that results from nuclear energy is not covered by your personal auto policy.
• Vehicles with less than four wheels or not made for use on public roads are not covered. For example, a three-wheeler or golf carts. These vehicles are typically covered under a homeowner’s policy. Whether or not you own a home, some insurers allow you to endorse your policy to include these vehicles.
• Public or Livery Conveyance – This exclusion states you are not covered while using your vehicle to transport people or products with your vehicle for a profit. The insurer expects you to get a commercial auto policy for this coverage. Some examples include limousines, taxi cabs, church vans, etc.
• Any other business use of a vehicle is not covered. As mentioned above, you would need a commercial auto policy for liability coverage on a commercial vehicle or a truck. Personal auto, pick ups, vans, and trailers being used with a covered auto are still covered.
• You are not covered for any intentional injury or property damage you cause. Yes, I am referring to road rage. This exclusion proves you are not the only person thinking of ramming the driver doing 45 mph in the left lane on the highway. If you attempt to live out this fantasy, you will not be covered.
• Your personal property is not covered while in your car. These items are covered in a homeowner’s policy under “personal property.”
• Any non-factory installed audio/video equipment (speakers, antennas, TVs) found in the vehicle is typically not covered in the event items are damaged or stolen in an accident.
As always, every policy is different and this article aims to discuss the basics. Call your independent agent or direct insurer regarding your specific policy if you are ever unclear about anything.