Wear And Tear Exclusion

A provision of an insurance contract that states that the normal, expected deterioration of the insured object will not be covered by the policy. Wear and tear is excluded from insurance policy coverage because it is inevitable. Insurance is designed to protect only against unforeseen losses. If insurance covered predictable losses, insurers would have to raise premiums dramatically to cover these expenses.

Auto insurance policies, for example, do not cover the replacement of auto parts that deteriorate with time and use, such as brake pads, timing belts and water pumps. These policies only cover unpredictable events such as collisions. To prepare for predictable losses such as wear and tear, owners can self-insure by setting aside money each month.