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.

Go through every detail of your policy documents.   Some insurers don’t cover injuries to passengers aged over 75. Some insurance companies will not pay out if you have been tricked into handing over your keys to a car thief. If your car is damaged during a “road rage” incident, your insurer may not cover this. It is not industry practice to provide gap insurance cover as standard, meaning that you will not be compensated by the full amount that you paid for your car in the event that it is stolen or is deemed to be a “write-off”.

You will find certain exclusions detailed in all policies. If your insurance company will not cover you for certain things and you only found out after the fact, this would be frustrating to say the least. 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.Nuclear fallout is a standard exclusion to be found in motor insurance policies.

The same goes for nuclear and radioactive damage – if your local nuclear power plant explodes, for example, you will not be covered by your policy.

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 or your car come under fire from aliens whist happily pootling up the M1, it is unlikely that you will be covered by your motor insurance policy.As this type of aggression would be considered an act of war, this qualifies as an exclusion.  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. If you report the car as stolen, and go on to prosecute in court, this rule does not apply.

Almost all policies purchased from major automotive insurers carry this exclusion.

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.

Look out for the phrase “acts of God” in your policy documents – they may not only be referring to earthquakes. A lady stranded by the roadside could be left there if an “act of God” has been the cause, breakdown insurance notwithstanding.

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 instance, a blind driver with not a licence nor insurance (surprisingly!) was found to be behind the wheel of a car. 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.

How do you go about finding the insurance cover that is best for you and your vehicle?A car insurance policy must be judged on more than price alone.  Research what’s covered and what’s excluded by each company you’re considering.  Secondly, if the level of cover you want isn’t available from standard car insurance firms, consider taking out extra insurance, such as gap insurance, from a specialist insurer.

Have a look at the policy documents and you will find that there are exclusions.

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 firms make their policy documents available on-line as a free download.

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. The article serves as a guide rather than statement of fact and should not be taken as such. You should make sure that your insurer provides you with full details.

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Filed under: Car Auto

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