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Exclusions in Car insurance

Exclusions in Car insurance

March 21, 2023

Imagine you want to book a resort through a travel agent. They will provide you with a clear breakdown of not only what is included in the package, but what is excluded as well like in-room snacks, extra bedding, etc. This helps travellers plan their trips better, as they know exactly how the trip will unfold and are aware of any additional charges that may apply.

Similarly, when it comes to car insurance, you should be aware of what it covers, and most importantly, what it does not - before making a purchase. By knowing this information beforehand, you can avoid out-of-pocket expenses and steer clear of any unpleasant surprises during the claims process.

What Are Exclusions?

Exclusions are certain situations for which the insurance company does not provide coverage. Those conditions are excluded from the insured event to prevent the company from suffering losses.

Exclusions Under Car Insurance

These are some of the circumstances in which insurance companies will not provide coverage under your car insurance policy:

👉Mechanical Or Electrical Damage

Any damage caused as a result of the use, breakdown, defect, or breakage of the mechanical or electrical components of the car is not covered.

👉Tyre Damage

Damages to tyres that are not caused at the same time as the car accident are not covered.


Damages occurring as a result of overloading of vehicle by either exceeding the permissible width, length, or height, or the permissible number of passengers will not be covered - provided overloading is proven to be the proximate cause.


The policy will not cover if the vehicle is damaged as a result of a speed race or test, provided that it was the direct cause of the accident.

👉Invalid Licence

The policy will not cover any damages if the car is driven by -

➔ Someone without a valid licence or

➔ Someone who is not licensed to drive according to the traffic laws or

➔ Someone who holds an expired licence and fails to renew it within 30 days from the date of the accident.


If the car is being driven under the influence of alcohol or drugs, no coverage shall be provided.

For example, Maneesh drove his car under the influence of alcohol after attending a party. He got into an accident which damaged the car’s headlights, side mirrors, and windshield. However, he is not eligible to receive the claim amount under his insurance policy because he was under the influence of alcohol.

👉Suspended Licence

The policy will not provide coverage for any damage in case the licence of the person driving the car has been suspended by the court or competent authority or according to traffic regulations.

👉Vehicle Used For A Different Purpose

If you use the vehicle for any other purpose than the one specified in the insurance certificate, and it gets damaged as a result of this use - you aren’t eligible to receive the claim amount.

For instance, Afsa bought car insurance for his personal vehicle and specified the same during the policy purchase. However, after a few months, he began using it for commercial purposes. Therefore, should his vehicle sustain any damage, the policy will not provide coverage since he uses the vehicle for different purposes than what was specified in the policy

👉War-Related Damages

The policy will not cover any damages resulting from the war.

👉Off-Road Damage

No coverage shall be provided for any damage caused off-road unless you have taken an off-road extension cover.

👉Violation Of Law

The policy will not cover if your car suffers damages or loss due to accidents caused by a violation of the law - if the violation implies an intentional felony or misdemeanour according to the relevant Federal Penal Code.

👉Outside The Geographical Location

Insurance policies may specify a certain geographical area within which the coverage will be in effect. The policy does not cover any accidents outside of these areas unless an extension cover is taken.

For example, Diya goes on a road trip to Oman in her car. Unfortunately, she meets with an accident, which causes substantial damage to her car and she submits a claim for the same. However, the insurer rejected the claim stating that the accident happened outside the UAE, so no coverage shall be provided.

👉Natural Disaster

Accidents that have occurred, caused, resulted, or are related directly or indirectly to natural disasters like floods, tornadoes, hurricanes, volcanoes, earthquakes, or quakes are not covered.

Note: Some insurance companies may provide coverage for damages caused to your vehicle because of natural disasters. Therefore, go through your policy documents or talk to your insurer to know if your car insurance comes with such coverage.

For example, Raghav lives in Sharjah, which faces heavy floods during the rainy season. As a result of water clogging, his car's parts get damaged. However, his car insurance policy won't cover the repair costs and he will have to shell out the money himself.

Wrapping up!

Considering the exclusions of motor insurance policies, one should be well aware of the different situations and types of damage that are not covered. By doing this, you will be prepared for any untoward incidents or expenses. Ensure you take some time and read through the policy documents and familiarise yourself with all the terms and conditions.

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