5 common car insurance exclusions

It’s important to know what you’re covered for and what you aren’t when considering car insurance policies. Here are 5 insurance exclusions to keep in mind.

1. Driving under the influence

An insurer isn’t likely to cover you if you get behind the wheel with drugs, alcohol over the legal limit or certain prescription medicines in your system.

2. Unapproved modifications

If you’re planning to alter your car’s paintwork, engine, suspension, wheels or body, it’s in your interest to check with your insurer first. Unauthorised modifications may lead to future claims being reduced or refused.

3. Gradual depreciation

Car insurance is usually designed for accidents, so the normal depreciation process isn’t likely to be covered. This can include:

Rust/corrosion
Mould
Mildew
General wear and tear

4. Restricted and unlicensed drivers

If you have added a restricted driver cover option, (e.g. restricting cover for drivers under 25 years,) you may not be covered if the restricted driver has an accident while driving your car. Similarly, if you let an unlicensed person drive your car, you risk having your claim denied.

5. Overloading your vehicle

By carrying more passengers or load than your car is permitted to, you may put yourself at risk of voiding your car insurance. Towing may be an exception to this, however you’ll need to check with the car’s manufacturer to find out how much you can safely move.

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. The CBA Group does not accept any liability for losses or damage arising from any reliance on external companies and their products, services and material. Commonwealth Bank of Australia ABN 48 123 123 124.

Car Insurance is provided by Hollard Insurance Partners Limited ABN 96 067 524 216, AFSL 235030 (Hollard) and distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (CBA). Hollard is the insurer of this Car Insurance product. Hollard is not part of the CBA Group. CBA does not guarantee the obligations or performance of Hollard or the products Hollard offers. Neither CBA, nor any of its related bodies corporate accepts liability or guarantees payment of any claim or benefit in respect of general insurance products issued by Hollard. CBA may be paid a commission if Hollard issues you with a Car Insurance policy. Details are provided in the Financial Services Guide (FSG) by clicking on the link, or by calling 13 1361 for a paper copy.

For products issued by Hollard, information about the target market can be found within the product’s Target Market Determination.

This information has been prepared without considering your objectives, financial situation or needs. Before making any decision about this product you should consider this information in relation to your own circumstances. A Product Disclosure Statement (PDS) is available at all Commonwealth Bank branches, by downloading them from commbank.com.au or by calling 13 1361 and should be considered before making any decisions about this product. You should also read the Premium, Excess and Discount Guide (PEDG) and Financial Services Guide (FSG) by clicking on the links, or by calling 13 1361 for a paper copy.