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What Short Term Insurance Excludes

Situations excluded by short term cover are just as important as those covered – perhaps more so. Exclusions are those damages that an insurer states it does not cover. If an accident occurs and it's deemed that it was excluded from the policy, drivers will be fully responsible for the costs of the accident, which can be significant. It's to their benefit to investigate policy exclusions and make sure to abide by them.

Types of Exclusions

Exclusions can be broad or quite specific. Examples of broad exclusions include loss of use, wear and tear, loss of value, damage to tyres for any reason, or electrical, mechanical, or computer breakdowns, breakages, or failures. Insurers may also broadly exclude a problem after a specific event, as with a loss of value after a repair. Another example is loss or damage due to theft when the driver left the keys inside the car. In this case, everyday theft is covered, but the driver's culpability for the theft causes it to become excluded. Exclusions may be very specific. Some insurers may exclude damage due to the requisition, confiscation, or destruction of the vehicle by order of any government or local authority. Exclusions may also be quite unconventional; for example, it has been known for a car insurance policy may exclude damage caused by pressure waves from aircraft travelling above the speed of sound! Exclusions can be wide-ranging, which is why one needs to be vigilant about them and always check the policy details.

Exclusion by Purpose

When purchasing short term insurance, insurers require that drivers indicate the purpose or use of the vehicle. If a driver indicated the use of the vehicle was for pleasure, but he or she had an accident while using the vehicle for business, that accident would not be covered, nor would any resulting injury, loss, or damage. It's important to be honest about such details; failure to do so can have dire consequences. If one's use changes, drivers can purchase a short term policy that will cover the new use. Policy documentation usually contains a section describing the conditions of use, so drivers should pay attention to that.

Exclusion by Driver

Insurers may also exclude cover if another person. who has not been specifically covered under the policy. is driving when an accident occurs. For example, suppose a driver rents a car for holiday and insures himself, but not his partner. Should they have an accident when his partner is driving, the accident, injuries, and damages would not be covered. Short term policies allow drivers to include additional drivers, so this situation can be easily avoided.

For full details of policy exclusions, drivers should consult the wording of the policy documents.

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