In Spain, having car insurance is mandatory to drive, and the same applies in most countries in Europe and Latin America. In addition to covering property damage and personal injury resulting from an accident, these policies guarantee that the victims receive the corresponding compensation.
The auto line is one of the most important in the insurance industry. In Spain, the insured fleet exceeds 34 million vehicles, according to the Informative File of Insured Vehicles (FIVA). In Latin America, it represents the largest market share (17.3%), according to the Mapfre Economics report.
Why is it essential to know the exclusions?
The exclusions determine in which circumstances the insurance company does not assume liability for the claim. They are explicitly included in the contract and help the insured party understand the limits of their policy.
For the coverage to be valid, the driver must comply with the traffic rules and use the vehicle properly. Below are the most common exclusions in most countries.
Frequent exclusions in auto insurance
- Driving without a license
If the driver drives without a license, or if it is suspended or expired, the insurance does not cover the damages resulting from an accident.
- Expired vehicle inspection or roadworthiness certificate
Vehicles must have a valid Vehicle Technical Inspection (or the equivalent inspection required in each country). If it is not current, the insurance policy may become void.
- Intentional damages
Claims caused deliberately are excluded. Moreover, simulating damages to obtain compensation constitutes fraud.
- Driving under the influence of alcohol, drugs, or certain medications
Driving under the influence of substances is prohibited. Some medications also affect driving capacity, as indicated in their prospects.
- Excess cargo or occupants
Each vehicle has limits on weight and number of passengers. Exceeding them may invalidate the coverage.
- Diving on unsuitable roads
Insurance policies generally do not cover damage that occurs on unauthorized roads, impassable areas, or racetracks/circuits unless specific coverage has been obtained.
- Participation in races or reckless driving
Illegal racing and reckless driving are excluded. Authorized competitions, such as rallies, require specific insurance due to their high risk.
Other usual limitations
In addition to the above exclusions, there are other situations that may void the coverage:
- Direct kinship: many insurance companies do not cover damages between vehicles of first-degree relatives (spouses, parents, and children).
- Failure to render aid: if the driver is convicted of this crime, the insurance company may deny coverage.
- Undeclared drivers or drivers under 25 years old: some policies limit coverage to the drivers identified in the contract.
- Undeclared modifications: changes to the vehicle must be reported; otherwise, they may be excluded.
- Wear and tear: brakes, tires, suspension, and other components subject to use are not covered by the insurance.
- Extraordinary events: natural disasters, terrorism, or civil unrest are usually managed by specific bodies according to the regulations of each country.
The importance of reviewing the policy
At Mapfre, we work to offer coverage suitable for each driver and to promote safe mobility. Understanding policy exclusions, accurately disclosing information, and reviewing the policy terms allow the insured party to have a clear understanding of their coverage and avoid unexpected situations.
