If you’re new to driving, then you may be shopping around for your first car insurance policy. If so, it’s important to understand car insurance exclusions. These are situations where your cover will not apply.
This post is a general introduction to common car insurance exclusions and why they matter but always check the policy wordings as each insurer may have different exclusions.
What Are the Different Types of Car Insurance – From Third Party to Comprehensive
When you take out a car insurance policy, you’ll be able to choose from three levels of cover:
- Third party only
- Third party with fire and theft
- Comprehensive
You can read our full guide to these three levels of cover.
It’s important to note that ‘comprehensive’ (or ‘fully comprehensive’) car insurance does not mean you are covered for absolutely everything. While the name implies total protection, every policy has its own exclusions and limitations. Comprehensive insurance provides the highest level of cover available, including protection for accidental damage, fire, theft, and third-party liability. However, there are still situations and risks that may not be covered, so it’s essential to check your policy details carefully.
Let’s take a look at some of the most common exclusions.
Common Car Insurance Exclusions
Wear and Tear
Your car insurance policy will cover you for any damages that occur as a result of an accident, a fire, or a theft. But it will not cover you for general wear and tear.
For example, you will not be covered for any tyre damage that does not occur during an accident, such as a worn tyres that need replacing, flat tyres or a blowout. If you experience a mechanical or electrical breakdown, your insurance may cover you for breakdown recovery if you have chosen to add breakdown to your policy, but it will not cover you for any necessary repairs.
Commuting, Business Use and Other Non-Standard Use
Your car insurance policy will usually only cover you for ‘Social, Domestic and Pleasure’ use. If you use your car for any purposes beyond this you may not have the correct level of cover in place.
For example, if you use your car for commuting to and from a single permanent place of work, you need to have ‘Social, Domestic, Pleasure and Commuting’ cover. If your job involves driving – whether it’s to make deliveries or to attend meetings – then you’ll need to add business use to your insurance policy.
Also, unless you take out specialist insurance, you will not be covered for using your car for racing, competitions, rallies, and so on.
Breaking The Law
Most car insurance policies contain exclusions that apply if the law is broken. You will not be insured if you:
- Drive without a valid driving licence for the type of vehicle being used
- Drive without a valid MOT certificate where one is legally required
- Drive while under the influence of alcohol or drugs
In addition, cover usually only applies when the vehicle is being driven by you or by drivers who are specifically named on the policy. If someone who is not insured under the policy drives the car and is involved in an accident, the policy may not cover damage to the vehicle or other losses.
Some insurance policies include a ‘driving other cars’ extension, which allows the policyholder to drive vehicles they do not own or are not insured on. This cover is usually third party only, meaning it covers damage or injury to others, but not damage to the car being driven.
If someone relies on this extension to drive your car, your own policy will usually not cover any damage to your vehicle. While third-party claims may be met by the driver’s insurer, you would normally have to pay for repairs to your own car yourself.
It’s also important to note that the ‘driving other cars’ extension is not automatically included on all policies.
Car Modifications
Insurers consider a car modification to by any alteration you make to your car that wasn’t part of the manufacturer’s standard specification, or that was not fitted as an optional extra at the point of sale. You can read our full guide to the different types of car modifications.
Some car modifications can affect your car insurance, especially if they affect how your car performs or handles, or if they could cause visibility issues. The problem is that not all policy wordings specify what sort of modifications will and will not affect cover.
As a rule of thumb, you should notify your insurer about any modifications in advance – whether they’re already in place, or you’re planning to get them. This will make it less likely that insurers will reject your claim should you need to make one.
Why Car Insurance Exclusions Matter
Car insurance is designed to provide financial protection if your car is damaged or you’re involved in an accident. But as we mentioned above, no car insurance policy will cover you for absolutely everything. Familiarise yourself with your policy’s exceptions and you can avoid any unpleasant surprises if you ever need to make a claim on your policy.
Even with the exceptions in place, comprehensive car insurance still gives you the broadest and most reliable cover possible. If you take out your policy with Go Girl, you can choose from a range of optional extras to help you feel extra secure on the road.
