Kevin Marshall
July 11, 2024
I previously posted on the basics of buying auto insurance and selecting an insurer. What additional information do you need to know when purchasing automobile insurance? You need to know about limitations and policy exclusions:
Understanding the exclusions and limitations in an insurance policy is crucial for you to avoid unpleasant surprises in the future. Here are the most common exclusions and limitations found in Ontario insurance policies (roughly in order of importance):
* Non-Disclosed Information: Failing to disclose relevant information during the application process may lead to coverage denial or limitations. It's crucial to provide accurate and complete information to the insurer.
* Wear and Tear: Normal wear and tear, as well as mechanical breakdowns, are typically not covered by auto insurance. Insurance is designed to address sudden and accidental events.
* Policy Limits and Sub-Limits: Each coverage type has specific limits. Policyholders need to be aware of these limits and understand that the insurance may not cover expenses exceeding these limits.
* Unapproved Vehicle Modifications: Modifications that are not disclosed to and approved by the insurer may not be covered. Examples include aftermarket performance upgrades or alterations that affect the safety of the vehicle.
* Unauthorized Drivers: If an accident occurs while someone who not listed on the policy is driving the insured vehicle without permission, coverage may be limited or denied.
* Commercial Use: Personal auto insurance policies often exclude coverage for vehicles used for commercial purposes. Business-related activities usually require a separate commercial insurance policy.
* Intentional Acts: Insurance typically does not cover damage or injuries resulting from “intentional acts”; these include criminal activities or deliberate damage caused by the policyholder.
* Racing and Speed Contests: Accidents that occur while participating in racing, speed contests, or other high-risk activities may be excluded from coverage.
* Named Perils Policies: Policies that specify coverage only for named perils (specific events) may not cover incidents outside those perils. Comprehensive coverage is more inclusive.
* Excluded Drivers: Some policies may explicitly exclude certain drivers from coverage, such as drivers with a specific license status or drivers with a poor driving history.
* Property Not Owned by the Insured: Damage to property that does not belong to the policyholder is generally excluded. For example, if you damage someone else's property and are at fault in an accident, their property is not covered by your policy.
* Acts of War or Terrorism: Damage or injuries resulting from acts of war or terrorism may be excluded from coverage. Specialized insurance may be required for such events.
I do hope you don’t need to think about auto insurance again (until you need to renew next year). But if you were hurt in a car accident, check out my website kmlawyer.ca/personal-injury-legal-questions for some immediate tips. When you need to advance a claim, contact us directly at 416-383-0550 to schedule a consultation.
The content of this blog is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. The information provided is not intended to be legal advice or to create a lawyer-client relationship. While we strive to ensure that the information is accurate and up to date, laws can change quickly, and we cannot guarantee the accuracy of the information provided. No responsibility can be taken for any loss or damage arising from any information or advice contained within this blog. Use of this blog and your reliance on any information on the site is solely at your own risk.
