Understanding Auto Insurance Policy Exclusions in New Jersey
For many New Jersey drivers, auto insurance can be one of the most confusing yet critical parts of financial protection. After an accident, realizing a loss isn’t covered due to a hidden exclusion in an insurance policy can not only be frustrating but devastating. Knowing exactly what an auto policy does and does not cover can make all the difference when filing a claim or seeking legal compensation.
What Auto Insurance Typically Covers
Most New Jersey auto insurance policies offer several types of coverage, including:
- Bodily Injury Liability: Covers injuries caused to others in an accident for which the insured is at fault.
- Property Damage Liability: Pays for damage to another person’s property, such as their vehicle or a structure.
- Personal Injury Protection (PIP): Covers medical expenses and lost wages for the policyholder and passengers, regardless of fault.
- Uninsured/Underinsured Motorist Coverage: Provides protection if the at-fault driver has no insurance or insufficient coverage to pay for damages.
While these coverages can make it seem as if everything is covered by insurance, each section has exclusions, specific circumstances, or uses that the policy will not cover.
Common Auto Policy Exclusions in New Jersey
1. Unauthorized Use of a Vehicle
If the vehicle is used without the owner’s permission, any accident that follows will typically be excluded from coverage. This situation can be classified as a theft, and insurers will generally deny these claims.
2. Commercial or Rideshare of a Personal Vehicle
Many policies exclude accidents that occur while transporting passengers or goods for pay, which includes rideshare services such as Uber or Lyft. Drivers who use their personal vehicles for these services or for income should also consider adding a separate commercial or rideshare coverage to their policy.
3. Acts of Nature
Natural events such as floods, hail damage, or falling trees are not covered under basic liability policies. These incidents are only covered if the driver has comprehensive coverage, which protects against non-collision-related losses.
4. High-Risk Driving
Any accident that happens while racing, during speed tests, or in driver skill training, even on private property, is usually excluded. Personal auto policies are designed for standard, everyday driving, not for any type of high-risk or competitive driving.
5. Intentional Damage or Harm
If a vehicle is used to intentionally cause injury or damage, the insurer will deny the claim. This includes road rage incidents or using a car as a weapon.
6. Modified Vehicles or Unapproved Technology
As vehicles evolve, insurers are adding exclusions for self-driving or other technologically advanced cars. Coverage may be denied if a vehicle has any unauthorized modifications that will affect safety or performance.
7. Motorcycles, ATVs, E-Bikes, and Other Non-Standard Vehicles
Many personal policies exclude vehicles with fewer than four wheels or those not designed for public roads. This means motorcycles, mopeds, and off-road vehicles often require separate policies.
8. Concealing Additional Drivers or Named Insureds
Some families hide the fact that a car is assigned to a teen driver or a family member with a poor driving record. An insurance company can disclaim coverage as being fraudulent.
9. Dishonesty Regarding True Location of Where a Car is Garaged
The location of a person’s residence, housing a car, may affect insurance premiums, especially if the location is in a high-crime district. People often try to register a car without someone in the suburbs and garage in a city, which can constitute insurance fraud and cause a disclaimer of automobile insurance coverage.
10. Failing to Disclose and Insure an New Jersey Registered Vehicle
In New Jersey the law requires all registered vehicles must be insured. Aside from financial fines and penalties, anyone driving an uninsured vehicle that is involved in an automobile accident will not be permitted to collect medical benefits and will not be allowed to sue the negligent driver for their injury and losses.
Why Policy Exclusions Can Be Confusing
Insurance contracts are filled with technical language and fine print that makes it difficult for clients to fully understand their rights. Even small wording differences between insurance companies can create significant changes in policy and coverage gaps.
After an accident, it’s common for people to assume that insurance will cover everything, only to later find out that certain damages are excluded. That’s why it’s essential to review the policy coverage details carefully and seek legal help from an experienced New Jersey injury lawyer who can interpret terms and advocate on behalf of the injured.
How an Experienced New Jersey Personal Injury Attorney Can Help
When insurance companies delay, deny, or limit valid claims, a skilled attorney can step in to protect the victim’s rights and pursue full compensation. The team at Davis,
Saperstein & Salomon, P.C. has had extensive experience handling car accidents, truck accidents, wrongful deaths, and other cases that cause injuries, damages, and losses due to others’ negligence across New Jersey. Understanding insurance exclusions is only the first step in protecting yourself and your family. When serious injuries, damages, or losses are caused by others’ negligence and carelessness, knowing where to turn for help matters most.
Davis, Saperstein & Salomon, P.C. Partner Garry R. Salomon, Esq., is certified as a Civil Trial Attorney by the Supreme Court of New Jersey, an honor bestowed upon less than 2% of all New Jersey lawyers. The National Trial Lawyers, an educational organization for trial attorneys, has also recognized him in New Jersey as a member of the “Top 100 Trial Lawyers”. He has further been recognized by Martindale-Hubbell, a highly respected and reputable attorney peer review rating organization, conferring upon him their highest rating as an “AV” rated attorney, along with many other awards and honors throughout his career as a personal injury lawyer. For information regarding the methodology or how these organizations rate attorneys please click here.
Along with his many recognitions for his work in the personal injury legal field, he also co-authored, along with attorney Jeffrey E. Salomon, Esq., The Consumer’s Guide to New Jersey Personal Injury Claims, 2nd edition, a book designed to help people who have been injured due to someone else’s negligence. It is an easy-to-follow guide to personal injury claims that explains some of the simple steps that can help your case and common mistakes that can hurt it.
If you would like a copy, the book can be purchased on Amazon.com, or a free copy can be shipped free of charge to you by clicking the link or calling Davis, Saperstein & Salomon, P.C. at 1-800-LAW-2000.
Call Davis, Saperstein & Salomon, P.C. Today!
If an auto accident has resulted in injuries, financial losses, or denied insurance claims, contact Davis, Saperstein & Salomon, P.C. for a free consultation. Our New Jersey auto injury lawyers are dedicated to uncovering every possible source of recovery for losses and damages, whether through insurance, the at-fault driver’s policy, or other responsible parties. We take pride in standing up for accident victims when insurance carriers fail to honor their obligations.
Our NJ attorneys have spent more than 40 years helping clients navigate complex insurance claims and recover the compensation they deserve. With over $1 billion recovered for more than 35,000 clients and their families, our firm understands how overwhelming it can be to deal with insurance companies after a serious crash, and how easily clients’ rights can be overlooked.
Call today. Understanding your policy is just the beginning. Clients seeking experienced personal injury lawyers near Teaneck, Newark, Colonia, Pennington, Jersey City, Hackensack, Princeton, Bergen County, Morris County, Passaic County, Essex County, Union County, or anywhere in the New Jersey or New York City area can contact Davis, Saperstein & Salomon, P.C. at 1-800-LAW-2000 or via email at info@dsslaw.com. Our firm offers free, no-obligation, consultations and second opinions, and has offices throughout New Jersey and New York City. We take cases on a contingency basis, meaning clients pay nothing unless the firm wins their case.
