Re-Blog: IIAG’s 12 Exclusions Found on some Auto Policies-Topic of this Week’s Radio Show

Re-Blog-IIAG’s content and blog cited below for the 12 exclusions listed.

To accompany this week’s radio show on 1160am, “Covering Your Assets” , Ray and Lynn discuss IIAG’s list of 12 exclusions included in some auto policies that you may not know about.

Here are a dozen auto insurance exclusions or limitations you won’t find in the “ISO-standard” personal auto policy.

 

  1. Undisclosed household residents are excluded. How many of your insureds have “boomerang” kids living at home that you’re not aware of?
  2. Business use of non-owned autos is excluded. Have you ever borrowed a neighbor’s car or made a business stop in a dealer loaner auto?
  3. Business use of ANY auto is excluded. Do any agency employees ever run to Staples or the post office on agency business?
  4. Use of ANY non-owned auto is excluded. Better not drive anyone’s car but your own.
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  5. Vehicles over 10,000 pounds in GVW are excluded. Have you ever rented a U-Haul truck or an RV thinking your liability coverage extended to the rental?
  6. Any type of delivery is excluded. Denied claims include pizza, newspapers, Mary Kay cosmetics and yes, even the delivery of insurance policies to customers by an agency producer.
  7. Permissive users only get minimum limits. This can apply to people who borrow your car or even unlisted household drivers.
  8. “Street racing” is excluded. Google “street racing” and see how often people are killed or critically injured in the process.
  9. Criminal acts are excluded or limits reduced. DUIs or even speeding tickets may preclude coverage.
  10. Medical payments only include licensed physician fees. One insured incurred a $25,000 “life flight” helicopter fee that would not be covered, even in part, by a policy with this exclusion.
  11. Theft without evidence of forced entry is excluded. One insured had a four-figure vehicle theft loss denied because he left his keys in the car.
  12. Sales tax is not covered under loss settlement. This cost one “same coverage” insured more than $2,000 out of pocket for sales tax on a replacement auto.

Credit: http://www.iiag.org/Information/Pages/News/TheDecPage/Article%201.aspx

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