What Does Car Insurance Not Cover?

Car insurance offers essential protection against financial and legal liabilities, but as a car owner, you should also understand what car insurance does not cover. Like every policy, car insurance doesn't offer coverage for everything, and knowing these exclusions can help you avoid unforeseen expenses. In this article, we will take you through some common exclusions in a car insurance policy, enabling you to choose the right coverage for yourself.

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Common Car Insurance Exclusions

Here are the situations not covered under a car insurance policy:

1. Raising Claims Under a Lapsed Policy

   You must renew your car insurance policy yearly. Not renewing it before the due date will result in its expiry, and it can also lapse. In case of an expired or lapsed policy, you cannot claim any financial protection from the insurer.

2. Damages From Mechanical/Electrical Failure

   Car insurance doesn't cover any non-accidental damage or faults to your car or its parts.

3. Damages When Driving Without a Valid Driving Licence

   The insurance company will not provide any coverage for damages if the insured car is being driven without a valid driving licence.

4. Damages Due To Usual Wear and Tear

   A motor insurance doesn't include coverage for the standard wear and tear of the vehicle due to daily use and only covers unexpected damages.

5. Damages When Driving Under the Influence of Alcohol/Drugs

   If you are caught drunk driving or under the influence of drugs, you can face legal consequences under the Indian Motor Vehicles Act. Any damages or losses to your vehicle arising from such situations are not covered under a car insurance policy.

6. Any Consequential Losses

   Any damages to the insured car from towing after a road accident are also excluded from car insurance if they result from a certain action by the car owner or third party.

7. Damages Outside the Geographical Region

   Any accidental damage sustained by the insured car outside the areas specified in the policy is not covered under car insurance.

8. Damages When Car Being Used Contrary to Policy Limitations

   If the insured car is not being used in accordance with the limitations mentioned in the policy (private car being driven for commercial purposes and vice versa), the insurer will not offer coverage for any damages or losses

Important Car Insurance Add-ons to Consider

You can extend the coverage of a car insurance policy by purchasing add-on covers for an extra premium. Some of the most important car insurance add-ons you can consider buying include:

• Zero Depreciation Cover: Also known as bumper to bumper or nil depreciation cover, the zero dep cover offers protection against the depreciation of your car and its parts. With this add-on, you can claim the total cost of your car or its damaged parts.
• Roadside Assistance Cover: 24x7 roadside assistance cover in car insurance is another important cover that provides emergency services in case of a car breakdown. Under this add-on, the insurer can either send a mechanic to your location for repairs or get it towed to the nearest garage if your car can't be repaired on the spot.
• Engine Protection Cover: The engine protection covers the cost of repairing damages to the insured car's engine, gearbox, or oil leakage.
• Return to Invoice Cover: The return to invoice covers provides compensation of an amount equal to the invoice value of the car in case of a total loss or if the car is damaged beyond repair.
• Tyre Protection Cover: Tyre protection covers repair and replacement related expenses of tyres/tubes in case of any accidental damage, cut or loss to the tyres.
• Consumables Cover: The consumables covers the cost of replacing items, such as engine oil, bolts, gearbox oil, nuts, AC coolant, ball-bearings, grease, washer, oil filter, etc., due to an accident.

Conclusion

Overlooking the motor insurance exclusions can be expensive and result in claim rejection. So, carefully review your policy documents and understand the scope of coverage to avoid hassles. You can always opt for some car insurance add-ons along with your comprehensive car insurance policy for enhanced coverage.