What is an Auto Insurance ‘Exclusion’?

All states have auto insurance requirements; for example, all drivers have to have valid insurance that meets the state’s requirements in order to drive. If a driver does not buy auto insurance or if they let their auto insurance expire, they cannot legally drive an uninsured vehicle until it becomes insured according to state law.

When you buy your auto insurance, it’s very important that you know what you’re getting into. One of the biggest concerns is not buying enough auto insurance. If you’re underinsured and you cause an accident, the other driver can go after your personal assets and sue you for the difference. When you buy adequate coverage, you can have peace of mind knowing that you are reducing if not eliminating the chances of having to come up with the other driver’s unpaid expenses out of pocket.

Auto Insurance Coverage Differs

Not all auto insurance is the same. In fact, there are variations to coverage in Texas. Some coverage pays to repair or replace a vehicle, medical expenses, towing, rental cars, court costs, etc., while others only pay some of these expenses.

When shopping for insurance, decide what you need and what’s important to you in case the worst happens and you have to lean on your policy. Now that we’ve gone over the basics, that’s address exclusions. Because of exclusions, you want to read your policy very carefully.

“Exclusions” refer to those things or people that the policy does not cover. Here are some common exclusions:

  • Some policies only cover those household members who are named in the policy, and anyone else not named would not be covered.
  • Excluded drivers are people who are excluded because they are named in an endorsement linked to your policy.
  • If you work for a ride-booking company like Uber or Lyft, your policy probably excludes coverage for when you’re driving passengers for the ride-booking service. Instead, you’d have to purchase a policy designed for people who drive for a ride-booking service.
  • Some policies exclude coverage for losses that were intentional; for example, if a wife drove her car through the garage after finding out that her husband was unfaithful, she may not be covered in that case.

We hope this article helped you better understand insurance exclusions. They’re important to know well because if you aren’t familiar with them, you could end up in a situation where your expenses are not covered by your policy.

Related: What Not to Do After a Car Accident

To file a car accident claim in Plano or the surrounding areas, contact The Zendeh Del Law Firm, PLLC today.

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