by E Sneneh,
Chicago Auto Insurance Producer
Chicago SR22 Car Insurance Specialist

Like all other insurance policies, auto insurance policies contain certain exclusions that apply to coverages. It should be empathized that these exclusions are general, and they do not have to be true for all personal policies. Your personal auto insurance policy may contain more or less exclusions than the ones listed below:

Business Use: Your personal auto policy will not provide any coverage while the vehicle is used for business purposes, delivery, or any other commercial or business use, such as transporting persons for fees (other than carpooling). Denying coverage for business use is common among  self employed insureds who use their private passenger cars, vans or SUVs for delivery or transporting goods for commercial and business use, or any business use like selling, repairing, servicing, storing, parking any vehicles.

A solution for that problem is to either acquire the right business auto insurance policy, or to endorse your personal policy for business use. This may require different underwriting and, usually, higher premiums.

Wear & Tear Are Not Covered Under Auto Policies: Unless resulted from an accident or theft, all mechanical or  electrical breakdown and failure, engine and other tire breakdown or failure, other freezing issues and wear and tear, are all not covered by your personal auto policy.

Additional Equipment Including Sounds Reproduction Equipment,  TVs, Tapes, & CDs: Sound systems that are added to your policy, your tapes and CDs are normally not covered by your personal auto policy. All and any additional equipment may be added by endorsement to your car insurance policy. Additional premiums will be due in that case.

No Coverage for Personal Property: Any and all personal property in the vehicle such as laptops, scanners, Ham Radios, files, watches, cash, guns, etc. are not covered under your personal auto policy. Homeowners insurance policies provide coverage for personal property anywhere in the world.

Unauthorized Use of Vehicles and Business Vehicles.  Any loss for any non owned auto will not be covered by your auto policy if there was no reasonable belief that you were entitled to use that vehicle at the time of the accident. Also, your personal auto policy will not provide any coverage to any vehicles that is company owned, or is designed for commercial use (tow truck, for example).  For example, if you own and insure a vehicle personally while your spouse has company owned vehicle, you may not be covered under neither your policy nor your spouse' policy while driving that company car!

War, Civil War, Nuclear War, Insurrection, Discharge of Any Nuclear Weapons (even if by accident.) These are remote scenarios but they are excluded from the personal auto policy. But any auto damages resulting from accidental discharge of nuclear weapons or radioactive materials will not be covered under personal auto policies.

The above exclusions also apply to auto policies issued to meet the Financial Responsibility Laws, or SR22. SR22 insurance policies are not much different than normal personal auto policies, except that SR22 insurance needs to be filed with the state.

There is no personal auto policy that covers 'everything'. Every policy has a set of exclusions that need to be evaluated by the insured people. It should be remembered that all auto policies may be endorsed to include some or all of these coverage, for an additional premiums.

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