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.
- Undisclosed household residents are excluded. How many of your insureds have “boomerang” kids living at home that you’re not aware of?
- 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?
- Business use of ANY auto is excluded. Do any agency employees ever run to Staples or the post office on agency business?
- Use of ANY non-owned auto is excluded. Better not drive anyone’s car but your own.
- 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?
- 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.
- Permissive users only get minimum limits. This can apply to people who borrow your car or even unlisted household drivers.
- “Street racing” is excluded. Google “street racing” and see how often people are killed or critically injured in the process.
- Criminal acts are excluded or limits reduced. DUIs or even speeding tickets may preclude coverage.
- 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.
- 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.
- 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.