How it works
Every auto policy has exclusions, usually grouped in a section with that heading for each coverage, and endorsements can add more. Examples that often appear in auto policies:
- equipment that is not permanently installed in the car, such as a portable phone or music player,
- routine maintenance and normal wear,
- losses caused on purpose,
- some business uses of the car, unless you add coverage for them,
- a driver excluded by name, where state law allows it.
Exclusions are one reason the label "full coverage" can mislead: even a policy with every common coverage leaves some losses out. Read the exclusions when you buy a policy, so you can spot gaps you might fill with an endorsement or a separate policy. If a claim is denied, ask the insurer to point to the exact policy language it relied on, and contact your state insurance department if you think the denial is wrong.
Related terms
Sources
- California Department of Insurance, Automobile Insurance Terms exclusion as a provision that denies or restricts coverage
- NAIC, A Consumer's Guide to Auto Insurance equipment not permanently installed and routine maintenance not covered
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