Some Things Still Aren't Covered
Having an auto insurance policy is a good thing. It shows that you're a responsible driver and it likely fulfills your state's requirements concerning the legality of your sharing the road with other drivers.
However, even if you have auto insurance, there are a number of instances where your automobile policy won't provide coverage. Such instances are called EXCLUSIONS. Why should exclusions exist in an insurance contract? Actually there are quite a few different reasons. Some fundamental reasons are that exclusions:
Let's look at these reasons a bit more closely and provide some examples. Help maintain the expense of providing insurance
If an individual's auto policy could be counted on to respond to every imaginable loss, it would also have an unimaginable premium. Auto insurance premiums are affordable only if insurance companies can exert some control over the losses their policies can be expected to cover. Therefore, automobile policies generally contain exclusions similar to the following example.
This automobile policy does not provide coverage for accidents which involve:
The first instance involves losses that are beyond any insurance company's ability to control and such losses would likely be far beyond the ability of most insurance company's to pay.
The second instance involves losses that are strictly under an individual's control. Insurance companies certainly want to avoid situations where their customers choose to put themselves and their cars in an excessively dangerous position. Prevent coverage under one policy when it should be covered elsewhere
Most automobile policies won't provide coverage for a loss or injury which:
These limitations are fair. Their purpose is to make sure that coverage which you purchase for your own car, van or truck listed on your policy does not also provide coverage in situations which are better covered by:
other types of policies such as mobile home, recreational vehicle, motorcycle or business coverage. Prohibit coverage for losses that are against public policy
Some examples of this reason are when coverage is denied for losses:
Insurance would quickly be impossible to buy if policies were expected to pay for injuries to car thieves or people who fake accidents and injuries.
So remember, without reasonable exclusions, you or I would not be able to enjoy the protection and security that is offered by automobile insurance. If you have questions about exactly what is excluded by your policy, talk to your insurance agent..