Things That Are Not Covered by Your Car Insurance Plan

A car insurance plan is mandatory by law whether you are buying a luxury car or leasing one. A car insurance plan saves you by covering the expenses of damages incurred by your vehicle after an unforeseen event like an accident.

Mostly, car insurance covers damages due to an accident, natural disaster, or man-made calamity etc. However, we can’t deny the exclusions at the time of buying a policy. You are completely mistaken by assuming that having a comprehensive car insurance means there’ll be no out-of-pocket expenses. Certain conditions and limitations are applied in terms of getting a final claim amount. In this article, we offer a sneak peek of certain exclusions for which different plans will not offer any reimbursement.

• Driving without a Valid License Insurance policy like HDFC Ergo Car Insurance doesn’t cover the damage while the insured is driving without a valid license. It is mandatory for an insured person to keep a check on the validity of his/her driving license to avoid the inconvenience.

• No Claim is Accepted for Loss Due to Wear & Tear An owner is restricted to file a claim for any loss occurring due to normal wear and tear. Likewise, any mechanical flaw, failure of a body part or electrical breakdown due to rusting or other weather condition is also added to the kitty of exclusion.

• Damage Incurred Under the Influence of Alcohol No insurance company will cover for damages that occurred due to an accident where the insured is driving the car and consuming alcohol or other intoxicating substances. Damage Caused Intentionally Damaged to your car that caused intentionally will not be covered by any insurer ever. If the insurer finds that the insured person has intentionally caused the damage to a car or person, then he is not eligible to file a claim. Same goes with the insured property as well.

• Damage to Car Tires, Electrical Equipment Tires tend to wither with time and constant use. Hereby, they are not eligible to be claimed for. Similarly, electrical equipment are very sensitive that can get damaged due to bad weather, short-circuit or infestation of rodents.

• Consequential Losses are Not Covered Damages that occur due to a consequential action by the policyholder or third party or not happen due to the uncertain event are excluded for a claim. For instance, if a policyholder pledged his car to someone for a definite period of time and the car is damaged while driving by the person to whom it has been pledged. In this case, no coverage will be provided for the damage caused to the car. However, if the car is driven by the insured, even if pledged to someone, and meet an accident, the damaged to the car will be covered to some extent, considering other conditions of the policy.

By purchasing a car insurance policy, one doesn’t only invest money but also some hope that he’ll be safe in an unforeseen situation. No doubt, insurance plan is your saviour, during the time you are messed up financially, which may burn a big hole in your pocket. At the time of buying a policy, it is equally mandatory to go through the terms and conditions to avoid the surprises at the time of filling a claim in need. Every insurance policy has its own set of exclusions and as an insured, you can’t deny them. So, it’s better to deal with them as it is to experience safe policy tenure.

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