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🚗 '''Auto exclusion''' is a [[Definition:Policy exclusion | policy exclusion]] found in many [[Definition:Commercial general liability (CGL) | commercial general liability]], [[Definition:Homeowners insurance | homeowners]], and other non-auto [[Definition:Insurance policy | insurance policies]] that eliminates coverage for [[Definition:Bodily injury | bodily injury]] or [[Definition:Property damage | property damage]] arising out of the ownership, maintenance, or use of automobiles. Its purpose is to prevent overlap with dedicated [[Definition:Auto insurance | auto insurance]] policies, which are specifically designed — and in most states legally required — to cover motor-vehicle-related [[Definition:Liability | liabilities]].

🔎 The mechanics of the exclusion vary by policy form but generally track the [[Definition:Insurance Services Office (ISO) | ISO]] standard language, which bars coverage for liability arising out of the ownership, maintenance, use, or [[Definition:Entrustment | entrustment]] of any auto owned or operated by, rented to, or loaned to the [[Definition:Named insured | named insured]]. Exceptions are sometimes carved back in: for example, a [[Definition:Commercial general liability (CGL) | CGL]] policy may retain coverage for [[Definition:Parking lot liability | parking lot]] operations or for autos that are not owned by the insured. [[Definition:Hired and non-owned auto liability | Hired and non-owned auto]] endorsements can fill gaps for businesses whose employees drive personal or rented vehicles on company business. Misunderstanding the scope of the auto exclusion is a common source of [[Definition:Coverage gap | coverage gaps]], especially for small businesses that assume their general liability policy covers delivery drivers or mobile service crews.

⚠️ Claims professionals and [[Definition:Insurance broker | brokers]] must pay close attention to auto exclusions because disputes frequently arise in gray areas — forklifts on warehouse floors, golf carts at resorts, trailers detached from tow vehicles, and [[Definition:Autonomous vehicle | autonomous vehicles]] operating on private property all raise questions about whether the exclusion applies. Courts interpret the term "auto" and the phrase "arising out of" differently across [[Definition:Jurisdiction | jurisdictions]], generating a body of case law that shapes how [[Definition:Underwriter | underwriters]] draft and how [[Definition:Claims adjuster | adjusters]] apply these provisions. As [[Definition:Mobility insurance | mobility risks]] evolve — ride-sharing platforms, electric scooters, drone deliveries — the traditional auto exclusion is being revisited and refined to ensure it continues to delineate clearly between auto and non-auto liability coverage.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Policy exclusion]]
* [[Definition:Auto insurance]]
* [[Definition:Commercial general liability (CGL)]]
* [[Definition:Hired and non-owned auto liability]]
* [[Definition:Coverage gap]]
* [[Definition:Insurance Services Office (ISO)]]
{{Div col end}}

Definition:Auto exclusion - Revision history

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