Decode the fine print
Keep this checklist next to our Understanding Your Policy pillar guide so you can log page numbers and endorsement requirements.
Exclusions are the insurer's "no" list. They describe situations where your auto policy will not pay—even if you otherwise have full coverage. Understanding them is the fastest way to avoid claim surprises. Below are the most common exclusions and the exact fixes to keep you covered.
Auto policies often exclude business or rideshare driving, unlisted household drivers, custom equipment above small limits, racing/off-road damage, and low towing or rental limits. Close the gaps with rideshare or commercial endorsements, list every driver, add custom equipment coverage, and raise roadside/rental limits.
1) Exclusions at a glance
| Exclusion | What it means | Quick fix |
|---|---|---|
| Business / rideshare use | No coverage while delivering or waiting for rides | Add rideshare or commercial endorsement |
| Unlisted household drivers | Claims can be denied if a resident driver is missing | List every driver; use named-driver exclusions carefully |
| Custom equipment caps | Aftermarket parts covered only up to $1k-$2.5k | Buy a custom equipment endorsement |
| Low towing/rental limits | $50-$75 tows or $30/day rentals max out fast | Upgrade roadside and rental reimbursement |
| Racing/track/off-road | Timed events and trail damage excluded | Buy track-day or off-road specialty coverage |
2) Business, delivery, and rideshare use
Personal policies are priced for errands. When you deliver, haul, or wait for a ride request, most carriers can deny a claim.
- Add a rideshare endorsement to cover the "app on" gap. See our rideshare guide.
- If you haul tools or goods, price a commercial auto or hired/non-owned policy.
- Keep mileage logs showing personal vs business trips for claims and taxes.
3) Household drivers not listed
Carriers expect full disclosure. If a resident crashes and is not listed, coverage can be denied.
- List teens, roommates, and partners even if they "rarely" drive.
- Use named-driver exclusions only when necessary and understand the strict limits.
- Update the policy when adult children move out or spouses get separate policies to remove surcharges.
4) Custom equipment and modifications
Standard policies cap aftermarket wheels, wraps, audio, wheelchair lifts, or camping conversions at $1,000-$2,500.
- Buy a custom equipment endorsement equal to the replacement value.
- Save receipts, install photos, and serial numbers for claims.
- Tell the carrier about performance mods; some require specialty policies.
5) Towing, roadside, and rental sub-limits
$50 tows and $30/day rentals are outdated. Upgrade before you need them.
- Set towing to the longest realistic tow (think home-to-favorite-shop distance).
- Match rental reimbursement to the size of car you actually need for work or family.
- Keep receipts even if the carrier dispatches the tow; documentation speeds reimbursement.
6) Racing, track, and off-road exclusions
Timed events, drifting, and trail damage are excluded in most personal policies.
- Purchase track-day or motorsports coverage if you attend events.
- Ask about limited off-road endorsements for trail use; rules vary by state.
- Store track tires and parts separately to avoid disputes after a claim.
7) How to read your exclusions fast
- Open your declarations and match them to the exclusions in the policy booklet.
- Highlight any "while carrying persons for a fee" or "while using for delivery" language.
- Note dollar caps for custom equipment, towing, and rental reimbursement.
- Log page numbers in your policy document decoder.
8) Scripts to use with your agent
For rideshare/delivery:
"I drive Uber and deliver groceries. Add a rideshare endorsement that covers Period 1 and send updated declarations."
For custom gear:
"I added $4,000 in wheels and audio. Add a custom equipment endorsement for that amount. I’ll send receipts."
For towing/rental:
"Increase towing to 75 miles and rental to $50/day for 30 days. Confirm the price change."
9) What to do if a claim involves an exclusion
- Document everything: photos, receipts, mileage logs, and app screenshots (for rideshare).
- If denied, ask for the exact policy clause cited and review it in writing.
- Fix the gap immediately so the next incident is covered.
- For business use disputes, consider a commercial policy going forward.
10) FAQ (fast answers)
Does a side hustle delivery count as business use?
Yes. If you're paid to move people or goods, add a rideshare/delivery endorsement or commercial policy.
Are friends who borrow my car excluded?
Occasional permissive use is usually covered, but household members must be listed. When in doubt, list them.
Do roof racks or lift kits count as custom equipment?
Yes. Anything added after factory delivery should be disclosed and valued for coverage.
What about towing my small camper?
Your auto policy may cover liability while towing, but damage to the camper itself needs a separate policy.
12) Quiet exclusions people forget
- Wear and tear: Policies cover accidents, not maintenance. Brakes, tires, and mechanical breakdowns need a warranty or mechanical breakdown policy.
- Intentional damage: Deliberate acts are excluded. Filing a claim for intentional damage is fraud.
- Personal items inside the car: Laptops and tools are personal property; they fall under renters/home coverage.
- Out-of-country driving: Standard U.S. policies often exclude Mexico or overseas trips. Buy a local policy before crossing borders.
11) Action plan (5-minute audit)
- List your uses: commuting, rideshare, delivery, trail, track.
- Check your declarations for towing, rental, and custom equipment limits.
- List every household driver; add missing names.
- Add endorsements where needed and save the new declarations.
- Review state rules with our state requirement map and revisit each renewal.
Exclusions are not traps—they define the contract. When you know them, you can buy the right endorsements and avoid denied claims. Finish this checklist, store your updates with your policy guide, and review it again when you change cars, jobs, or driving habits so you never wonder what is covered, ever, anywhere. Always.