12 Exclusions Cheap Car Insurance Companies Don’t Want You to Know About

When insurance companies advertise “Cheap” car insurance they’re often referring to the quality of the coverage rather than the price.

This is because cheap car insurance policies can be riddled with little-known exclusions taking away coverage standard car insurance policies would.

When you stack up what you’re actually getting when you purchase a “Cheap” car insurance policy versus a standard policy they’re not actually less expensive the companies that sell them are just better at marketing.

That’s not the way we do business here at Rogue Risk.

In the video below, you’ll learn three common exclusions on “Cheap” car insurance policies. After the video is the full list of 12 exclusions that you need to know about before purchasing cheap car insurance.

12 Exclusions on Cheap Car Insurance Policies

It’s important to note that this list is not exhaustive. There may be (and often are) additional exclusions found on cheap car insurance policies that are not found on standard policies. Additionally, not every cheap policy will include all of these exclusions.

1) Undisclosed household residents are excluded.

Do you have any “boomerang” kids living at home? What about parents or grandparents living in the house?

If these family members are not listed on the policy as a named insured they could be excluded from coverage.

2) Business use of non-owned autos is excluded.

Have you ever borrowed a neighbor’s car or made a business stop in a loaner car from a dealer?

3) Business use of any auto is excluded.

Do you ever run to Staples or the post office on business? How about running to grab lunch for the office party?

These are considered business use of your personal auto and can be excluded from coverage.

4) Use of any non-owned auto is excluded.

Better not drive anyone’s car but your own.

This is a big one. It’s so easy to simply jump in someone else’s car real quick to hop down to the store. Nope.

5) Vehicles over 10,000 pounds in GVW are excluded.

Have you ever rented a UHaul truck or an RV thinking your liability coverage extended to the rental? Nope.

6) Any type of delivery is excluded.

Denied claims include pizza, newspapers, Mary Kay cosmetics…

For everyone side-hustling right now to make some extra cash, if that side-hustle including driving your vehicle for deliveries any accident may be excluded.

7) Permissive users only get minimum limits.

This can apply to people who borrow your car or even unlisted household drivers.

8) “Street Racing” is excluded.

Google “street racing” and see how often people are killed or critically injured in the process.

In general, street racing seems like a bad idea, but just know it’s most likely excluded on your cheap car insurance policy.

9) Criminal acts are excluded or limits reduced.

DUIs or even speeding tickets may preclude coverage in the event there is a resulting accident.

10) Medical payments only include licensed physicians fees.

One insured incurred a $25,000 “life flight” helicopter fee that would not be covered, even in part, by a policy with this exclusion.

11) Theft without evidence of forced entry is excluded.

One insured had a four-figure vehicle theft loss denied because he left his keys in the car.

12) Sales tax is not covered under loss settlement.

This cost one “same coverage” insured more than $2,000 out of pocket for sales tax on a replacement auto.

The Rub

Not all insurance policies are created equal.

In fact, the differences can be drastic and have a severe impact on how much you are forced to pay in the event of an accident.

Work to get the “Best” rate on your car insurance, not the cheapest.

If your current insurance professional has never addressed coverages such as these with you before, then I’d encourage you to reach out to us today.

I look forward to introducing you to a new way of viewing your personal insurance program.

Thank you,

Ryan Hanley

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