Are These Exclusions In Your Personal Auto Policy?

Are These Exclusions In Your Personal Auto Policy?

September 12, 2019 Personal Insurance & Risk Management, The Beacon Blog 0 Comments

I usually don’t write about personal lines insurance, but the tendency to view these lines and especially auto as a commodity is too disturbing to ignore. I share these feelings with insurance educator Bill Wilson who writes often and entertainingly on the subject. Recently Bill reprinted a 2014 article ( which included a list of 12 exclusions or limitations not found in the standard ISO Personal Auto policy which may be in the policies advertised online or on television. If you bought one of those policies, check it for one or more of the following exclusions:

  1. Undisclosed household residents (e.g. adult children who moved back home).
  2. Business use of non-owned (hired or borrowed) autos.
  3. Business use of ANY auto.
  4. Non-owned autos.
  5. Size of vehicle, e.g. over 10,000 pounds GVW.
  6. Any type of delivery.
  7. Permissive users (other than named operators) excluded or covered for reduced limits.
  8. Street racing.
  9. Criminal acts including traffic violations.
  10. Medical payments other than to licensed physicians.
  11. Theft without evidence of forced entry.
  12. Sales tax not included in loss settlement.

To quote another insurance educator, John Eubank, “The bitterness of no coverage is remembered long after the sweetness of low price has been forgotten”.

About the Author

Harry Cylinder

Harry Cylinder, CPCU, ARM has spent nearly fifty years in the insurance industry, the majority of the time as a consultant. He has been employed by The Beacon Group of Companies since 2008, specializing in the review and analysis of property and casualty coverage forms. Mr. Cylinder has been reviewing policy forms as they have evolved over the past decades. In 2008 he published an article in the CPCU Journal which was the first description of cyber insurance coverage for a general insurance audience. Since that time he has regularly written on cyber and other topics for The Beacon Companies’ blog.