What is Not Covered by Your Car Insurance Policy?

Usually, the inclusions of a car insurance policy are written in big and bold letters, whereas exclusions in car insurance are mentioned in the terms & conditions. Moreover, they come with insurance jargon, making it hard for a layman to understand. It is important to know all about your policy exclusions as it will assist you in raising car insurance claims. Read below to know what can be excluded from your car insurance policy.

Read more

Get Car Insurance starting at only ₹2094/year*
Renew in 2 minutes
Chose from 20+ insurers
51 lakh+ Cars insured
Other options

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.

Written By: PolicyBazaar - Updated: 27 May 2022
You May Also Like
  • Transferring Car Insurance from One Person to Another
    Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance transfer to the new owner. But sadly, most people have...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You
    9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners
    Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance
    Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance
    Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Know All About Pay As You Drive and How You Drive Insurance

21 Sep 2022

Are you also worried about high motor insurance premium rates?...
Read more
Renew Your Car Insurance Policy with the AI-Based Technology

12 Sep 2022

As per the Motor Vehicle Act, 1988, every car owner must possess...
Read more
Why Should You Choose a New India Car Insurance Policy?

24 Aug 2022

Buying a car insurance policy is one of the best ways to protect...
Read more
How to Save Tax on Electric Vehicles (EVs)?

23 Aug 2022

Electric cars are known as the future of the automotive industry....
Read more
How Can Modifications Affect Your New India Car Insurance?

05 Aug 2022

In India, car enthusiasts love to modify their cars with...
Read more
Multiple Ways To Check Your Car Insurance Status Online
All insurance companies in India now have a digital presence. It not only makes it easier to buy insurance online...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing important documents, such as your car insurance documents, can be daunting. In such a state of affairs, the...
Read more
Car Depreciation Calculator
If you are looking to purchase a new car or planning to sell your existing one, it is important to know how...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more