What is an example of damage that may be excluded under Loss or Damage coverages?

Damage classified as "wear and tear from regular use" is typically excluded under Loss or Damage coverages because insurance policies are designed to cover sudden and accidental damage rather than the gradual degradation of a vehicle over time. This concept acknowledges that vehicles, like any other machinery, experience inevitable wear and tear from regular operation, which does not meet the criteria for being an insurable event.

On the other hand, scenarios such as fire damage resulting from a faulty system, damage from natural disasters, or damage caused while driving at high speeds may be subject to specific coverage depending on the terms of the insurance policy. These situations represent incidents that could occur unexpectedly and are not part of the normal depreciation or wear expected of a vehicle. Hence, they are generally covered unless specifically excluded by the policy.