Glossary

Exclusion

A provision in an insurance policy that removes specific people, vehicles, uses or causes of loss from coverage.

Also called: policy exclusion, coverage exclusion

An exclusion is a part of an insurance policy that says what is not covered. The policy's insuring agreement grants coverage in broad terms; exclusions then carve out situations the insurer will not pay for, because they are uninsurable, better covered by another kind of policy or priced separately.

Common exclusions in a personal auto policy include intentional damage; using the car to carry people or property for a fee, such as ride-hailing or delivery without an endorsement; racing; vehicles with fewer than four wheels; wear and tear and mechanical breakdown; personal belongings in the car; and vehicles you own or regularly use but have not listed. Each coverage part has its own list, so liability exclusions differ from collision exclusions. A named excluded driver is a person-specific exclusion added by endorsement.

Some exclusions can be bought back. A rideshare endorsement restores coverage for app-based driving, and custom equipment coverage adds back aftermarket parts. Others cannot. State law also limits exclusions, especially in liability coverage that protects accident victims, so a provision that is valid in one state may be unenforceable in another. When a claim is denied, ask the insurer to identify the exact exclusion in writing and compare it with your policy wording. See what car insurance does not cover.

Last reviewed October 4, 2026

In the index now

Related terms

Endorsement A written amendment to an insurance policy that adds, removes or changes coverage, such as rideshare use, rental coverage or OEM parts. Excluded driver A specific person listed on a policy as not covered to drive the insured cars, often used to keep a high-risk household member from raising premiums. Business use A personal policy rating for a car driven as part of your job, such as visiting clients or job sites, which costs more than commute or pleasure use. Personal auto policy The standard contract form behind most U.S. car insurance, with parts for liability, medical payments, uninsured motorists and damage to your car. Declarations page The summary page of an auto policy listing who and what is insured, the coverages, limits, deductibles, premium and policy period.

Related guides

Car insurance for delivery drivers Whether your personal policy covers food and package delivery, what DoorDash, Uber Eats and Amazon Flex insurance pays, and how to close the gaps. How to appeal a denied car insurance claim Get the denial reason in writing, test it against your policy, send a documented reconsideration request, then escalate to appraisal or your regulator. Insurance for Turo and peer-to-peer car sharing How insurance works when you rent out your car on Turo or rent someone else's, why personal policies usually exclude it, and the gaps hosts and guests face. Umbrella insurance: liability protection above your auto policy How a personal umbrella policy sits on top of your car insurance, what it covers and excludes, and the underlying limits you must keep to make it work. What car insurance does not cover The common gaps in a personal auto policy, from breakdowns and stolen belongings to delivery driving and Mexico trips, and how to close each one. Why car insurance claims get denied The most common reasons auto insurers deny claims, from lapsed policies and excluded drivers to business use and late notice, and how to avoid each one.