| Tort Liability of Owners/Operators of Private Motor Vehicles |
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| While the owners and operators of private motor vehicles sometimes think of their possession of auto insurance as totally eliminating any potential tort liability on their parts, such owners and operators remain subject to the tort system to the extent that their insurance coverage does not encompass part or all of their legal liability for an incident that has caused personal injury or property damage to another person. Such a situation can arise, for example, where a court judgment reflecting injury or damage caused by an insured private vehicle owner or operator exceeds the limits of his or her policy, or where the insured's failure to provide required notice to an insurer or cooperate in the defense of a legal action causes the insurer to assert that it is not required to provide coverage for the loss under the policy. More... |
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| Business Use Exclusion in Motorist Insurance |
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| Some motorist insurance policies exclude coverage for injuries and damages if they occur while a vehicle is being used for a business purpose. For example, if a driver is using his or her personal van to make deliveries for the driver's home-based business and causes a collision with another vehicle, the driver's insurance company would refuse to pay for the damage caused to the other vehicle and for any injuries to those riding in it. In effect, the exclusion causes a vehicle to drive in and out of insurance coverage depending on its driver's particular mission. More... |
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| Underinsured/Uninsured Motorists' Consent to Settle |
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| Underinsured motorist and uninsured motorist provisions in many auto insurance policies contain clauses that exclude coverage if the insured, without the consent of the insurer, makes a settlement with or obtains a judgment against an uninsured or underinsured motorist who is liable for the damages caused by an accident. These clauses, which are called consent to settle, consent to settlement, or consent to action clauses, are included in the policy because the interests of an insured, who may hope to obtain a quick settlement with an uninsured or underinsured motorist and may be less concerned about the size of the settlement, often differ from the interests of his or her insurer, which hopes to recover from the liable party every possible dollar of the amounts it is required to pay out under its policy. More... |
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| Impact of Riders/Endorsements on Auto Insurance Policies |
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| A rider is a paper attached to a document that amends the document. In an automobile insurance policy, a rider can modify the conditions of the insurance policy. It can increase or decrease the policy's benefits. It can add exclusions from coverage, like a crime exclusion clause. The use of the rider means that the entire policy does not have to be rewritten if a change needs to be made. Riders are also known as endorsements, slips, or rubber stamps. More... |
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| Assigned Risk Coverage |
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| State assigned risk plans basically operate by creating a pool made up of those drivers who would otherwise not be able to obtain necessary insurance coverage and apportioning the responsibility for providing coverage on the members of that pool among the insurers who write motor vehicle policies in the state. As a consequence of the unique and higher-risk nature of the assigned risk business, state laws covering assigned risk plans often contain detailed provisions concerning application for, participation in, and termination of assigned risk coverage. More... |
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