Which of the following is a common exclusion in Personal Auto Policies?

Driving without a valid license is indeed a common exclusion in Personal Auto Policies. Insurance companies typically require that all drivers of the insured vehicle hold a valid driver's license. If an individual operates a vehicle without the appropriate licensing, it can lead to a host of legal repercussions, such as citations or fines, and poses a higher risk to the insurer, as the individual does not meet the necessary legal criteria to operate a vehicle safely and responsibly. Consequently, many insurance policies include this as an exclusion, meaning that claims may not be honored if an accident occurs while driving without a valid license.

This exclusion is significant because it emphasizes the importance of legal compliance in all aspects of vehicle operation. It acts as a safeguard for insurers against the elevated risks associated with unlicensed driving. Being aware of such exclusions helps policyholders understand their responsibilities and the conditions under which their coverage is active.