What is typically excluded from standard auto insurance policies?

Intentional damage to the vehicle is typically excluded from standard auto insurance policies because these policies are designed to cover unforeseen accidents and losses that are not deliberate. Insurance is fundamentally based on the principle of indemnity, which is intended to provide financial protection against unexpected events. When a policyholder purposefully damages their own vehicle, it defeats the purpose of insurance and introduces moral hazard, where the insured might engage in risky behavior knowing they will be compensated.

In contrast, damage from natural disasters and theft often falls under specific coverage options or endorsements in standard policies, while accidents outside the coverage area can vary depending on the terms of the policy. Thus, understanding that intentional damage is not insurable helps clarify the motivations behind insurance policy exclusions.