by 
The Curious Bag
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Your auto insurance policy contains many statements that restrict, or limit coverage. One way that insurance companies limit coverage is by adding exclusions to a policy.
Definition
An auto insurance policy exclusion is a statement that the insurance company will not pay for an accident under a specific circumstance, even if coverage would have otherwise applied.
Action Exclusions
Action exclusions deny coverage if you are taking a certain action when the accident happens. This might include driving intoxicated, using the vehicle to commit a felony or driving with a revoked license.
Individual Exclusions
Individual exclusions disallow claims payments if a certain person is driving the vehicle, such as someone who has taken the car without your knowledge or permission.
Property Exclusions
These exclusions limit or deny coverage for certain property, such as custom wheels, high end stereo equipment, awnings or cabanas attached to the vehicle.
Why Exclusions?
Exclusions are necessary for an insurance company to accurately predict claims costs. Without them, your insurance company would not be able to provide you with auto insurance coverage at an affordable rate.
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