Insurance policy prices are based on two basic factors, in the event of a loss, how much will they have to pay and secondly, what is the likelihood of a loss occurring. Exclusions are a way for insurance companies to control risk; and thereby control costs. Exclusions are provisions in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.
They can lower the amount that you pay for insurance, which is to your advantage; but only if the exclusion clause does not prohibit drivers or uses that you require. Private passenger policies exclude commercial use, for example transporting passengers for hire; by excluding that exposure an insurance company can sell policies for les money. However, if you operate a limousine or Medicar, then, as your agent, we will need to find you a policy that provides for those coverages.
Exclusions are provisions in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.
