Five Crazy But Common Car Insurance Exclusions

You buy your car insurance, you glance at the policy documents, and you assume you’re covered for all eventualities where your car is stolen or damaged. Think again.

Be sure to read your policy documents thoroughly. If you are a passenger over seventy-five years of age, you may not be covered by some insurance companies. Some insurance companies will not pay out if you have been tricked into handing over your keys to a car thief. There are some insurers who will not cover your car for damage caused as a result of a “road rage” incident. Gap insurance cover is not something that is provided as an industry standard; what this means is that should your car be “written-off” or stolen your insurance company will only pay a fraction of what you paid for your car, leaving you out of pocket.

Certain exclusions will apply to all car insurance policies. Some exclusions exist which you may think should be automatically covered, and it could be frustrating to find out later that this is not the case should an unfortunate incident happen to you. Some of them are downright crazy. Five of the most crazy but common car insurance exclusions are:

1. Nuclear Fallout

If Britain was wiped out by a nuclear bomb and you managed to survive, you wouldn’t receive a pay out from your insurer for the damage caused to your car.Standard practice amongst motor insurers is to exclude any damage caused by nuclear fallout.

The same applies if your local nuclear power plant explodes and destroys your car, or if your car is contaminated by radioactive waste: you will not be compensated for the damage caused.

Currently this exclusion applies to policies bought from almost all the major motor insurance firms, including Admiral, Direct Line, Aviva, Churchill, Saga, Prudential, Sheila’s Wheels, and Co-operative Insurance to name a few.

2. UFOs

Most car insurance firms will not pay out if your car is damaged by pressure waves from aircraft travelling at or beyond the speed of sound.Any damage which is caused by UFOs from outer space is included.

If you are cruising along the motorway and happen to be zapped by an alien laser beam, it is unlikely that your insurance company will pay out.  This is because such aggression would be considered an act of war.  Car insurance firms usually exclude cover for damage caused by war, civil war, acts of a foreign enemy, or revolution.

Currently this exclusion applies to policies bought from almost all major car insurance firms, including Direct Line, Aviva, Admiral, Churchill, Saga, Prudential, Sheila’s Wheels, and LV=.

3. Car Stolen by Jealous Husband or Wife

Motor insurers will not provide cover if your car is taken without your permission by any member of your household or family. This includes your husband/wife/partner as well as children, parents or a lodger in your house. This will apply in all cases unless you report your car as stolen and prosecuted the person who stole it in a court of law.

Currently this exclusion applies to policies bought from almost all major motor insurance firms, including Direct Line, Admiral, Co-operative Insurance, Sheila’s Wheels, and LV=.

4. Earthquakes

Fortunately for us Brits, the UK is not prone to earthquakes or tremors. However, were the worst to happen and the ground opened up and swallowed your car, or even if a less violent earthquake shattered your windscreen, it’s probable that your insurer would refuse to pay out. 

A small but significant number of car insurance firms do not cover for damage caused by earthquakes. Admiral is the most notable insurer with this exception. Other insurers who refuse cover for earthquakes include Saga, Prudential, and Sheila’s Wheels.

As well as looking out for earthquakes, remember to check your insurance policy documents for the phrase “acts of God”. One famous Ladies insurer provides a breakdown service which will not cover you if it is an “act of God” which has caused you to become stranded, for example.

5. Blind Drivers

Unsurprisingly, there is not a single insurance firm who will provide cover for drivers who can’t see. This is never stated explicitly in insurance policy documents, but insurance companies cover their backs by saying they won’t pay out for claims resulting from damage caused by “unlicensed drivers”.

In one case, no driving licence and thus no insurance cover was not enough to prevent one blind driver from jumping behind the wheel. In 2006, 31-year-old Omed Aziz was banned from driving for three years and given a suspended jail sentence after police caught him driving on the wrong side of the road.

This is a common exclusion amongst almost all the major motor insurers.

It can be hard to ensure that you have the best possible cover available?It is important to take other things into consideration than just the price.  Research what’s covered and what’s excluded by each company you’re considering.Secondly, if the level of cover you require isn’t available from your household name insurance firms, consider taking out extra insurance, such as gap insurance, from a specialist insurer.

To find the exclusions to your car insurance is not too hard if you read the policy documents.

To be sure you’re not hit by a nasty surprise when you need to make a claim, make some time to read through policy documents when choosing your car insurance.Most insurance documents are available on-line for you to download for your reference.

For peace of mind, you can always choose to take out extra cover such as gap insurance, which will ensure your receive the full amount you paid for your vehicle if it’s stolen or written off. The exclusions mentioned may well have changed between now and when this article was first written. This article is simply a guideline and should not be taken as advice on which policy is right for you. Be sure to obtain the full details from your insurer.


Car insurance is there to give you financial protection in the event of an accident whether or not you are responsible for it. You must factor-in car insurance as part of your motoring expenses. Having good car insurance will give you financial protection which you will need if you have an accident.

Unfortunately, not all policies will cover damage to your car, or protect you against liability, legal fees or property damage. Bolt-on niche insurance products such as inconvenience cover, gap insurance and even legal protection insurance can prove to be invaluable additions to your comprehensive car insurance to ensure an accident does not end up costing you more than you can afford should the worst happen.

Choosing the right car insurance will protect not only you, but your vehicle, and third parties in the long run. If you are planning to drive in the UK, you are required to purchase car insurance. The type of car insurance cover that you choose will determine the level of protection that your insurance company will give you.

WHY YOU SHOULD SHOP AROUND FOR NEW CAR INSURANCE

Shopping around for car insurance is very important for several reasons:

• You may find better quotes
• Depreciation will affect the value of your car
• Your circumstances may have changed
• Car financing could put you and the car in a higher risk category
• Personal effects loss may be covered by some insurers
• You may find inclusive breakdown cover
• You may find an insurer offering inclusive legal cover
• It may be possible for an insurer to also cover a second car
• You may be offered an introductory discount

Just because you have used the same insurance company or insurance broker for several years, does not mean you are getting the best deal. It doesn’t always follow that the same company or broker can offer you the best deal for your insurance.

If your broker manages your entire insurance portfolio then he is in the best position to get you the best deal, as he already has information about your demands and needs. They may be able to consolidate those demands and needs into a package which often will only be available via a broker.

Your car will depreciate in value according to both age and usage. Your new car begins to depreciate as soon as you put the first few miles on the clock. For every year that you own a car it will decrease in value. You should get a reduction in your premium to reflect this. This may seem obvious but people often neglect to do this. Check the value of your car against its blue book value rather than the price you paid – your broker can do this for you. This is because even fully comprehensive policies will only cover a vehicle to its blue book value rather than it’s purchase price. So make sure that that is what you declare the car’s value to be. It will usually cost more to insure a more expensive car. The exceptions to this rule may be when an insurance company offers to replace your car in the case of the accident for the exact same car or new car of same specification, but this is rare and the chances are that this will not be the case. There is however an insurance product called Vehicle Replacement Insurance which does just that! Click on the link to find out how it works in more detail.

Your circumstances may have changed since you last renewed your car insurance. You may have switched jobs and not drive as many miles per year or have paved the front lawn and turned it into off-street parking. Get insured according to any changes in circumstances – no matter how small you think they are. Insurance companies lower their prices for low mileage drivers and discounts can be significantIf you wait until renewal time it probably won’t be that expensive to add additional drivers to your car insurance policy. By waiting until renewal time you may be able to avoid the administration costs of adding extra drivers.

SO WHICH IS THE BEST CHOICE OF CAR INSURANCE COVER?

In the UK, there are three types of vehicle insurance.

1. Basic Third Party Insurance is mandatory in many countries, including the UK. It gives you cover against a claim against you for damage to another car, its driver, or passengers should you be in an accident. Third Party Insurance acts as security against liabilities for damage to another person in a vehicle accident. This does not cover any damage to the vehicle or the driver of the vehicle. There is no reimbursement of repair costs with this type of insurance.
2. Third Party, Fire and Theft Insurance will cover the benefits of third party insurance and includes any financial loss to the insured vehicle caused by fire or theft. For a vehicle that does not have a high market value, this is often the best cover for the average driver. You must have a fully comprehensive policy for a leased or financed car.
3. A Fully Comprehensive policy will give you the widest range of cover.Damage to your car, and personal injury caused by an accident, as well as the basics of third party, fire and theft, are covered by a comprehensive car insurance policy. If the vehicle value is higher than the insured can afford to pay to replace it, then fully comprehensive is the preferred choice. Finance Gap or Vehicle Replacement Gap Insurance are additional insurance products available to top up the gap between your payout and the cost of paying off a new car, so go online and find out more about these insurance products.
Many factors affect car insurance and most insurance companies offer a range of secondary covers to meet the varied and specialized needs of the policyholder.

FACTORS AFFECTING CAR INSURANCE

1. The Policyholder

• Age of the policyholder
• Insurance companies favour woman policy holders
• Marital status
• Your postcode is a factor
• How large the car and engine are
• The cost of replacing the vehicle
• Any modifications that have been made to the vehicle by its owner

A younger less experienced driver will pay a higher insurance premium than someone with several years driving experience.

A married personis considered more responsible for their actions than a person is with no commitments. It stands to reason that married men with kids have more responsibilities than single men and the insurance companies therefore consider married men a lower risk category.

Where a person lives also affects the insurance cost. Motorists living in rural locations and in areas with a low crime rate are more likely to get a lower insurance premium than those living in cities.

A powerful car is more likely to lose control at the hands of younger drivers: expensive cars cost a lot to replace if scrapped and should they simply require repairs the sum of the replacement parts often costs more than the used car’s value, making more powerful cars very expensive to ensure.

Modifications are more likely to alter the vehicles safety; performance is improved, and handling may be compromised making the vehicle more unpredictable. The insurance company therefore sees these factors as an increased risk and will increase their premiums as a result.

2. Driver History

• Years of driving experience
• Claims made in previous years
• If you have points on your licence
• Annual mileage

The number of years a person has been driving suggests their understanding of the rules of the road, shows the driver has built up experience of driving under varied driving conditions and has attained a certain level of confidence while behind the wheel. The number of insurance claims made in the previous five years will either confirm or deny these assumptions. Driving convictions such as speeding, hazardous driving or driving while intoxicated will affect the premium. This does not include parking violations.

Your annual mileage is a factor too. The more a vehicle is on the road, the higher the risk for an accident.

3. Vehicle History

• Current vehicle value
• Owned, leased or financed
• Vehicle make and model
• Performance level and size of engine
• Modifications to the vehicle

If the vehicle has a low book value, it may not seem to be cost effective to pay for comprehensive insurance; however this is not necessarily the case. If the named driver has several years no claims then fully comprehensive insurance could actually cost the same as third party fire and theft cover, but with additional perks such as windscreen cover and legal assistance etc. Buying car insurance on-line can mean including a range of additional benefits with only a small increase to your premiums. Fully comprehensive insurance cover will be required for leased or financed vehicles. The leasing or finance company will require reimbursement from the policyholder for damage to the car. This will be covered if you have fully comprehensive insurance.

There may be other benefits included in your car insurance policy, which are not always necessary but sometimes advisable:

• Breakdown insurance
• Courtesy vehicle
• Roadside and/or breakdown insurance cover
• Legal cover
• Cover for your windscreen
• Protecting your no claims bonus
• Compulsory or voluntary deductible amount

Choosing the correct insurance and getting the best quote can be daunting as there are so many variables to consider. An easy to follow quote engine will get the right quote quickly and easily. It is a good idea to consider using an insurance aggregator website to get started. On-line insurance aggregator websites are generally very easy to use. They will search the insurance market for you and show you the products which best match you needs based on the answers to some initial questions. After the site has collected the quotes, you can then compare different policies, as well as being able to save your quote, amend your requirements if necessary and if you are happy you can then buy on-line. Think about first giving your current broker a call and asking them to get you a better deal based on your findings. When comparing quotes on-line, remember to do so on a like-for-like basis. This may not always be as simple as you at first think. Good luck.