It’s important to know what you’re covered for and what you aren’t when considering car insurance policies. Here are 7 standard 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
  • Rot
  • Damp
  • Mould
  • Mildew
  • Normal wear and tear

4. Restricted and unlicensed drivers

If you have chosen restricted cover (e.g. choosing cover for drivers 25 and over), your cover may be voided if someone under 25 drives your car and is in an accident. Similarly, if you let a friend or family member without a licence drive your car (and you’re aware of it), you’re likely to void your insurance and have your claim denied as well.

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.

6. Letting your premium lapse

If you forget to pay your car insurance premium, your policy may expire. Any damage caused after your renewal date is then not likely to be covered. That’s why it may be worth setting up an automatic direct debit to avoid a potentially costly oversight.

7. Hiring out your car

If you choose to hire out your car or are planning on driving for a rideshare service, you may not necessarily be covered in event of an accident. Claims can be excluded if they happen while your car is being used for certain financial gains. However, conditions may apply with this exclusion and can differ according to your policy.

Keep in mind, this isn’t a full list of exclusions, so it’s best to check your insurance policy’s product disclosure statement (PDS) for more information.

Explore our range of car insurance products

Tell me more

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.

Car Insurance is provided by CommInsure, a registered business name of Commonwealth Insurance Limited ABN 96 067 524 216 AFSL 235030 (CIL). CIL is a wholly owned non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (The Bank). The Bank does not guarantee the obligations or performance of CIL or the products it offers. Where we refer to 'we', 'us' and 'our', we mean CIL. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.

Product Disclosure Statement  is available at all Commonwealth Bank branches, by downloading them from or by calling 13 2423 and should be considered before making any decisions about this product. You should also read the Financial Services Guide and Privacy Policy which are also available by calling 13 2423.