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.