Family Exclusions in Car Insurance Policies

If you’ve researched the ins and outs of car insurance policies, you know that they are complex documents that are difficult to understand. Due to the length and complexity of an automobile insurance policy, most people never review the fine print in their policy. While we certainly don’t blame them and know how arduous it can be to understand an insurance policy, most people simply go online, get a quote for their insurance policy and click purchase. What they usually don’t know is that deep in the fine print of most policies is what’s called the “intrafamily exclusions” clause. Language in these clauses preclude any family member that is in your automobile during an accident from recovering for injuries caused by your negligence!

It is estimated that 1 and 8 drivers in Ohio are uninsured. Ohio also has very low minimum policy limits of $25,000 per person per injury. Automobile accident injuries frequently result in damages much larger than these minimums. As a result, it is critical that you inquire into uninsured/underinsured coverage. This means that in the event of an injury caused by an uninsured or underinsured driver, you will still have the right of recovery against your own insurance company.

Practically speaking, because they are excluded by this specific language, your family would have to file a personal injury lawsuit against you to recover all damages they’ve sustained. This would not be the same result if your neighbor was injured. Your neighbor would be able to make a claim under the liability provisions of your policy up to your insurance limits but your own family often cannot if this language is present! In essence, family exclusion language in a car insurance policy results in no coverage to your family. This is very unfair and has the potential to devastate a family!