12 New York Auto Insurance Limitations That You Won’t Find in an ISO Standard Policy

Did you purchase your auto insurance based on price alone? This is a common scenario as many insurance carriers are trying to turn car insurance in to a commodity. This, unfortunately, can but an extremely costly mistake for the insured when claims go uncovered because the policy holder never discussed their coverages with an insurance agent. The following 12 exclusions were provided by IA Magazine and are common on many direct writers insurance policies (15 minutes to save 15% anyone?). Standard ISO policies provided by independent agents, however, will not have these exclusions.

  1. Undisclosed household residents are excluded: How many of you have “boomerang” kids living at home that you haven’t told your insurance company about?
  2. Business use of a non-owned auto is excluded: Have you ever borrowed a neighbor or family members car or made a business stop in a dealer loaner car?
  3. Business use of any auto is excluded: Do you ever run to staples or the post office on behalf of your employer?
    Use of any non-owned auto is excluded: Better not drive anyone’s car but your own.
  4. Vehicles over 10,000 pounds in gross vehicle weight are excluded: Have you ever rented a U-Haul truck or an RV thinking that your liability coverage extended to the rental?
  5. Any type of delivery is excluded: Denied claims can include pizza, newspapers, Mary Kay cosmetics.
  6. Permissive users only get minimum limits: This can apply to people who borrow your car or even unlisted household drivers.
  7. “Street Racing” is excluded: Google “street racing” and see how often people are killed or injured in the process. Also look at the wide variety of definitions of street racing.
  8. Criminal acts are excluded or limits reduced: DUI’s or speeding tickets may preclude coverage.
  9. Medical payments only included licensed physician fees: One insured incurred a $25k “life flight: helicopter fee that would not be covered, even in part, by a policy with this exclusion.
  10. 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.
  11. 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.

These are just a few of the ways that you can be tripped up when purchasing your New York car insurance based on price alone. Call us anytime to a comprehensive and complimentary review of your coverages!

image courtesy of: Ryan Hyde on Flickr

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