What is Not Covered by Your Car Insurance Policy?

Types of Car Insurance Plans in India

Before knowing exclusions in your car insurance policy, you should know the types of plans you can buy. There are three types of car insurance plans offered by different insurance companies in India-

1. Third-party Liability Policy- This plan protects you against the damages or losses to the third-party/property caused by your car during an accident. You must have at least this cover mandated by law and it is the basic form of car insurance coverage.

2. Comprehensive Insurance Policy- This plan covers both third-party liabilities and own damages due to accidents, theft, natural calamities, man-made disasters, total loss, etc. Moreover, you can opt for add-on covers with your comprehensive car insurance policy to enhance your basic coverage and add an extra layer of protection.

3. Standalone Own-damage Insurance Policy- This plan covers the damages or losses to your own car caused by accidents, fire, theft, natural & man-made disasters, etc. It is usually bought by the policyholders who have third-party cover and want to enhance coverage by giving a shield to your own vehicle.

What is Not Covered by Your Motor Insurance Policy?

To understand better, here is a list of exclusions in car insurance policy-

1. Regular Wear & Tear of Your Car

   Your car ages with time and surely it needs service & maintenance for proper working. You need to take care of all the repairs & replacements that result from regular wear & tear with the time.

   Although, any kind of maintenance or services that are needed because of regular wear & tear of the car is not covered under your comprehensive car insurance policy.

2. Your Personal Belongings

   In case your car is vandalized or broken, your insurer will pay for the damages caused to your car, but it will not pay for any theft or damage caused to your personal belongings kept in the car, like your laptop, phone, or other valuables. To keep your belongings safe, make sure you keep them tucked out of sight.

3. Driving Without Mandatory Documents

   Driving your car without mandatory documents like a driving license, PUC certificate, car registration certificate, and a car insurance policy is against the law. So, if you ever get into an accident and you are not having all of the compulsory documents, you won’t get any compensation for the losses or damages. Therefore, make sure you have all valid DL, RC, a car insurance policy, and a PUC certificate.

4. Using Personal Car for Commercial Purposes

   Your insurer will not provide coverage when a personal car is used for the purposes. If your car is being used to transport anything related to your business and it faces a collision, you cannot make a claim, unless your policy covers commercial vehicles. This area is known as ‘Business Use’ coverage and is usually not covered in car insurance for individuals.

   Read More: What Does Your Car Insurance Covers?

5. Violation of Traffic Rules

   As a responsible driver, you need to follow all the traffic rules. Disobeying the road safety rules and obligations by drunk driving, rash riding, or jumping the red light means you won’t be covered for any damages that occur during that time.

6. No Coverage When You Are Using Someone Else’s Car and Vice-Versa

   If you are driving someone else’s car or the car is rented, and it meets with a collision or accident, the claim for the damages will be rejected. The insurer will only pay for claims that have been made for the car registered under the policy holder’s name. Similarly, if your spouse or any other family drives your car and meets with an accident, the insurer will reject the claim on the same grounds.

7. Non-renewal of Your Car Insurance Policy

   Remember, you should always carry a valid car insurance policy. It is important to keep in mind the renewal date of your policy. However, your insurer will send you the renewal alert through calls, SMS, or email, it is your responsibility to renew before it expires. If you carry an expired or lapsed policy and meet with an accident, your insurer will not entertain you for the claim raised. Therefore, you should renew your car insurance policy on time.

8. Modification of the Car

   Many people tend to modify their car by adding accessories like an enhanced braking system, chassis bracing, LSD, engine modifications, etc. When you add any accessories or elements to your car, remember to intimate your insurer otherwise your claims will get rejected as these modified parts were not covered at the time you bought the policy.

9. Consumables

   Your comprehensive car insurance policy does not give compensation for the car’s consumables. Consumables refer to those car parts that have a limited use like oil & lubricants, nuts & bolts, and gases & water. At the time of claim settlement, you are supposed to pay from your own pocket to replace these consumables.

Final Words

Before buying a car insurance policy, it is advised to read your policy documents carefully and understand the nitty-gritty associated with it. There might be tricky exceptions in car insurance that do not meet the eye initially. Therefore, you must clear all your doubts from your insurer, so that your claims are not rejected.