Auto insurance policies have specific exclusions that define what incidents or circumstances the insurance company will not cover if you live in Denver, CO, or around the area. These exclusions are critical to know as they determine situations where you may not receive compensation despite having coverage.
Common Exclusions
Common auto insurance exclusions include intentional damage, such as accidents caused by reckless driving or driving under the influence. Policies also typically exclude regular wear and tear, mechanical failures, and damage from racing or other illegal activities.
Another thing policyholders need to remember is the lack of maintenance on a vehicle. If they fail to keep up with the car to keep it reliable and in working condition, the vehicle may stall and cause an accident. Although cars are considered machines, they can fail without warning. If it is learned that the driver failed to perform a specific check on the vehicle or it failed inspection, this could cause a denial in a claim.
Business Use Exclusions
Using your vehicle for business without proper commercial insurance coverage is often excluded. This includes activities like deliveries or ridesharing, where incidents may not be covered under a standard personal auto insurance policy. If not reported truthfully, it may be considered a form of insurance fraud in some situations. This can lead to severe fines.
Vehicle and Modification Exclusions
Standard auto insurance policies may not cover certain vehicles or extensive modifications. This can include vehicles used for off-road purposes or those with significant alterations. Inquiring with the insurance agency or reviewing your policy can help identify any such exclusions.
AFI Insurance Is There For You
AFI Insurance is here for you when you need insurance information. Our services are available in Denver, CO, and the surrounding areas. Call today.
