Auto insurance limitations and exclusions

All auto insurance coverage is subject to exclusions and limitations as outlined in the policy. Physical changes caused by wear and tear, freezing, mechanical breakdown, or parts failure are usually not covered. Some added equipment, parts, or special paint may not be covered, or are subject to a dollar limit unless optional coverage is purchased. Other exclusions include injury caused intentionally or if the injury is caused by a person who uses an insured vehicle without permission. truck rental coverage false arrest, wrongful eviction, libel, slander, defamation of character, and invasion of privacy. Exclusions and limitations must be clearly written and very specific.

Conditions: This section establishes the conditions that must be present or complied with by the company and/or the insured. Examples of conditions include time-period restrictions, duties in the event of a claim, proof of loss, cancellations, etc. Coverage: Each automobile insurance policy provides several types of coverage, and each, when purchased, has a specific function. Common coverage is:

Bodily Injury Liability This protects you, up to the dollar amount stated in your policy, against the financial consequences of a loss arising from injury to someone from an automobile accident for which you are legally to blame. Defense costs are in addition to the limits of liability.
Property Damage Liability Similar to bodily injury liability coverage, except that it protects you against a claim for damage to another automobile or other property, in an accident for which you are legally liable. The protection is again up to the amount of insurance you purchase. Defense costs are in addition to the limits of liability.
Medical Payments Pays for medical or funeral expenses, up to the amount of insurance you purchase, for you and others injured or killed while riding in your car, no matter who caused the accident. It also covers you and resident members of your family if struck by a car as a pedestrian or if riding in another car.
Uninsured Motorists (UM) Provides injury coverage to the insured driver, resident members of your family and passengers, up to the policy limits, when involved in an accident caused by the owner or operator of an uninsured vehicle or a hit-skip. The named insured and family members are also covered if they are pedestrians and struck by a UM vehicle.
Underinsured Motorists (UIM) Provides injury coverage to the insured driver, resident members of your family and passengers, up to the policy limits, when involved in an accident when the at-fault driver s policy limits are less than your UIM limit.
Uninsured Motorists Property Damage (UMPD) Provides coverage for your vehicle if involved in an accident with a negligent uninsured motorist. Insurance companies are not required to offer UMPD to those carrying collision coverage, since it provides similar coverage. Coverage amount is normally $7,500 and includes a deductible no higher than $250.
Collision This coverage pays for damage to your car caused by impact with another object or an overturn, irrespective of fault. The collision coverage usually includes a deductible. This means you pay the first $100, $200 or so for repairs to your car and the company pays the rest.
Other Than Collision This is a catch-all coverage that pays you for damage to your car caused by something other than collision or upset. Perils covered under other than collision may include fire, theft, missiles, falling objects, larceny, explosion or earthquake, tornadoes and windstorms, hail, water, flood, malicious mischief, vandalism, riot, civil commotion and contact with a bird or animal. Other than collision is also available with deductibles. It is also known as comprehensive insurance coverage.
Declarations: The declarations section serves to personalize the policy by listing the pertinent information described in the policy, including the insured s name and address, the policy number, the type of policy, dollar limitations on various types of coverage, descriptions of vehicles covered, deductibles, policy dates indicating the time period in which coverage is provided, any endorsements that modify the basic coverage and, if applicable, the names of any other organization or person to whom payment is to be made in the event of a loss (e.g., bank with loan).

Definitions: This section of the insurance policy defines the various terms used in the policy. It explains such terms as who is covered by the contract and what the company describes as the covered auto.

Exclusions: Exclusions clarify the intent of the insurance policy by explaining the situations in which the policy will not cover you or the insured vehicle. You may be able to buy back coverage for certain exclusions by adding endorsements to the policy. Policyholders should pay special attention to this section and should be aware that the policy does not cover all things under all circumstances.

Supplementary Payments: This provides for payment over the limits of liability noted in your policy for expenses incurred by the insurance company, all costs taxed against you in a court suit, attorney s fees, bail bonds (up to a certain amount) and related costs. It also covers reasonable expenses you incur at the request of the company. Most policies cover up to $200 a day for wage losses if attending a hearing or trial at the company s request.