Sales material leads with what is covered because that is the part that sounds like protection. The exclusion section is where the contract says what it will not pay for, and that section decides how much of your worry the product actually answers. Read it first, slowly, and before you read the highlights.
What exclusions usually sweep up
Exclusions vary from contract to contract, so treat any list here as a set of categories to look for rather than a description of any one product. Common groups include wear items, failures caused by a lack of maintenance, damage from accidents or environmental events, modifications, use the contract does not allow such as commercial driving, and conditions that existed before the contract started. Some contracts also exclude parts that were already under a factory warranty.
Ask what the wear and tear line really means
'Wear and tear' is the phrase most worth pinning down. Ask whether the contract names the parts it means, or whether it leaves the call to the provider. Ask whether the exclusion turns on the part or on the cause of the failure. A worn component that failed because of a leak may be read differently from one that simply reached the end of its life. Get the answer in writing, because a phone explanation is not part of the contract.
Questions to ask before you sign
Who decides whether a failure is wear, and what evidence does the provider require to make that decision? Can the exclusions change after you sign, and if so, how are you told? Does an exclusion for one component also reach related parts? Are there exclusions that depend on the vehicle's mileage at the time of the claim rather than at purchase? If a term is unclear, ask the provider to show you where in the document it is defined.
Set the two lists side by side
Print the coverage section and the exclusion section for each provider on your shortlist. Mark every exclusion that touches a part you actually worry about. Then mark every covered part that you would be unlikely to need. The gap between those two marks is where your money is really going. A short exclusion list on a page that says little else is not a sign of generosity, so read the definitions behind it.
If you want to see how this site weighs the terms it prints, the methodology page explains the rubric in plain language. Use it to check whether an exclusion you flagged counts against a provider or is treated as ordinary for the category.