Ève Brault

Are You Familiar With Your Car Insurance Policy Exclusions?

Choosing your car insurance based on the premium is one thing; having your claim denied because of an exclusion in your policy is another. Do you know what is and isn’t covered under your car insurance policy? Here are five exclusions to keep in mind!

Items in the trunk of your car: covered or excluded?

Between commuting to and from work and weekends away with the family, the trunk of your car is a handy way to transport everyday items like computers, hockey equipment and golf clubs. However, these items are not covered under your insurance policy.

If personal belongings are stolen from your vehicle, you will not be compensated by your insurer. That being said, most of these items can be covered by your home insurance policy.

However, if the thief damages your car when they break in, this damage will be covered by your car insurance as long as you have B3 coverage.

Breakdowns: covered or excluded?

The most important thing to remember is that car insurance falls under damage insurance.

Breakdowns such as an overheated engine, a blown transmission or issues caused by rust are not insured damage. However, damage resulting from a loss of control is covered, depending on the coverage you chose when taking out the policy.

Tires: covered or excluded?

If you get a flat tire from a particularly deep pothole, the damage will not be covered by your insurance. However, if a malicious person slashes your tires, this damage may be covered by your policy if you have theft and/or vandalism coverage.

Rented vehicles and vehicles for hire: covered or not covered?

You guessed it: this is another car insurance exclusion. If the vehicle is rented to a third party or used as a taxi, the damage to the vehicle will not be reimbursed.

Vehicles in storage: covered or excluded?

A registered vehicle should always have the minimum amount of coverage, and this also applies to vehicles in storage. Even if your car is stored in your garage and your garage is covered by your home insurance policy, this coverage does not extend to your car. If you are unlucky enough to suffer a garage fire after cancelling your car insurance, you will not be compensated for damage to the car.

The best thing you can do is add a storage endorsement to your car insurance policy, which suspends certain types of coverage while your vehicle is in storage but maintains the minimum amount of coverage. The insurer will also give you a credit based on the amount of time the vehicle is off the road.

In short, it’s important to know what’s covered and what’s excluded from your car insurance policy to avoid any nasty surprises. If you have questions, don’t hesitate to ask your broker. Their role is to guide you and provide you with the best solutions for complete peace of mind! Give us a call.

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Ève Brault Underwriter
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