What is the purpose of exclusions in an auto insurance policy?

Exclusions in an auto insurance policy serve a vital function by clearly specifying what is not covered under the policy. This helps to delineate the boundaries of the insurance coverage, ensuring that both the insurer and the insured have a mutual understanding of the risks that are excluded. For example, common exclusions may include intentional damage, using the vehicle for commercial purposes, or operating the vehicle under the influence of drugs or alcohol. By outlining these exclusions, the policy prevents misunderstandings and disputes concerning coverage when a claim arises. This clarity is essential for the insured to make informed choices about supplementary coverages they may need or to understand the limitations of their current policy.