Car insurance is a necessary safeguard for Connecticut drivers, offering financial and medical expense protection in case of accidents, theft, or damages. However, many policyholders are unaware that their coverage often comes with exclusions—specific situations or conditions where the insurer is not obligated to pay for claims. Understanding these exclusions can prevent unexpected financial burdens and ensure compliance with insurance requirements.

Below is a detailed look at some of the most common car insurance policy exclusions in Connecticut, along with insights on how to mitigate their impact.

Driving Under the Influence (DUI)

While car insurance policies typically cover damages caused by accidents, they often exclude coverage for incidents that occur while the driver is under the influence of alcohol or drugs. In Connecticut, where DUI laws are stringent, this exclusion can leave drivers facing significant financial liability if they cause an accident while impaired.

Key Insights:

• Statistics: In 2021, Connecticut reported 120 alcohol-impaired driving fatalities, making up 33% of all traffic deaths. Insurers have become increasingly cautious, leading to DUI-related exclusions in policies.
• Tip: If you have a DUI conviction, consider purchasing a high-risk policy or an SR-22 certificate to meet state requirements and protect yourself financially.

Intentional Damage

Most car insurance policies exclude coverage for damages that are intentionally caused. This exclusion applies whether the damage is to the insured vehicle or another party's property. For instance, if a driver deliberately crashes their car, the insurer will likely deny the claim.

How to Stay Protected:

• Avoid any action that could be construed as intentional negligence or harm.
• Ensure your policy includes comprehensive coverage for unforeseen damages caused by others, such as vandalism.

Ridesharing Activities

Participating in ridesharing services like Uber or Lyft has become increasingly popular, but most personal car insurance policies exclude coverage when the vehicle is being used for commercial purposes. While ridesharing companies provide some level of insurance, there may be gaps in coverage, particularly during periods when the app is on but no passenger is in the vehicle.

Solutions for Rideshare Drivers:

• Purchase a rideshare endorsement or commercial auto insurance to bridge any coverage gaps.
• Confirm your ridesharing platform's insurance details to understand where their coverage begins and ends.

Unlicensed Drivers

Insurance policies often exclude coverage for accidents involving unlicensed or unauthorized drivers. If you lend your car to someone without a valid license, your insurer is likely to deny any claims resulting from an accident.

Preventive Measures:

• Always verify the driving status of anyone borrowing your car.
• Consider adding authorized drivers to your policy for added protection.

Using the Vehicle for Illegal Activities

If your car is used to commit a crime—such as transporting illegal substances or evading law enforcement—your insurer will likely deny any claims associated with that incident. This exclusion serves as a deterrent against using insured vehicles for unlawful purposes.

Examples of Situations Not Covered:

• Reckless driving while evading police.
• Damages caused during the transport of contraband.

Tip: Maintain a clean driving record to avoid such scenarios.

Mechanical Failure and Wear and Tear

Standard car insurance policies do not cover repairs or replacements resulting from mechanical failure, normal wear and tear, or routine maintenance issues. This exclusion means you will need to pay out-of-pocket for things like a failed transmission or worn-out tires.

Coverage Alternatives:

• Invest in an extended warranty or mechanical breakdown insurance.
• Perform regular maintenance to minimize costly repairs.

Driving Outside Policy Terms

Insurance policies often have geographical limits. For instance, if your policy covers driving within the United States, any accidents that occur while driving in Canada or Mexico may not be covered unless you have an additional rider.

How to Prepare:

• Before traveling, check the geographical restrictions in your policy.
• Purchase travel or international auto insurance for trips outside the U.S.

Excluded Drivers

Most insurance policies allow policyholders to explicitly exclude certain individuals from coverage. If an excluded driver is in an accident while using your vehicle, the insurer will deny the claim.

Example: If you list a family member with a poor driving record as an excluded driver to lower your premium, they won't be covered under any circumstance.

Recommendation: Clearly communicate the exclusion terms to all potential drivers of your vehicle.

Why Understanding Exclusions Matters

Failing to understand your car insurance policy exclusions can lead to significant financial risks. With Connecticut's minimum car insurance requirements—including $25,000 for bodily injury per person and $25,000 for property damage per accident—it's essential to ensure your policy aligns with your needs. However, these minimums don't cover every situation, and exclusions may further limit what is covered.

Mitigating Risks Associated with Exclusions

To avoid complications stemming from common exclusions, follow these steps:

• Review Your Policy: Regularly review your policy details and ask your insurer about specific exclusions.
• Add Endorsements: Consider adding endorsements or riders to address gaps in coverage, such as uninsured motorist protection or comprehensive coverage.
• Stay Informed: Familiarize yourself with Connecticut's car insurance regulations to ensure compliance.

Conclusion

Car insurance policy exclusions in Connecticut can significantly impact your financial security if not properly understood. By being proactive—reviewing your policy, adding necessary endorsements, and practicing responsible driving—you can avoid unpleasant surprises and ensure you're adequately protected. Always work with a reputable insurer and consult with an expert if you're unsure about the exclusions in your policy.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Connecticut car accident claims can be challenging. Fortunately, you don't need to do it alone. The experienced lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

Contact us now for a free legal review.