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Automobile Insurance

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Any person using the named insured's covered auto ... Using vehicle in racing facility. Non-owned in auto business (ex: mechanic damages car) ... – PowerPoint PPT presentation

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Title: Automobile Insurance


1
Automobile Insurance
  • Lecture 10

2
Covered Auto
  • Any vehicle shown in declaration
  • Newly acquired auto
  • Broadest coverage of any auto listed
  • Additional must notify within 14 days
  • Replacement notify for collision
  • 4 days collision if no collision currently
  • Trailer owned by the insured
  • Temporary substitute vehicle

3
PAP
  • Liability Coverage
  • Medical payments coverage
  • Uninsured motorist coverage
  • Damage coverage
  • Duties after loss
  • General provisions

4
Liability Coverage (A)
  • Insuring agreement insurer agrees to pay
    damages for bodily injury or property damage
  • Split limits ex 250/500/100 means bodily
    injury of 250,000 per person and 500,000 per
    accident and 100,000 property damage
  • Legal defense costs in addition to above

5
Insured Persons
  • Named insured and any resident family member
  • Any person using the named insureds covered auto
  • Any person or organizations, for liability
    arising out of an insured persons use of a
    covered auto (using for employer)

6
Supplementary payments
  • In addition to the policy limits
  • 250 for cost of bail bond
  • Premiums on appeal bonds
  • Interest accruing after judgment
  • 200 per day loss of earnings
  • Other reasonable expenses (incurred at insurers
    request)

7
Exclusions
  • Intentional injury
  • Property owned or transported
  • Property rented
  • Use as public or livery conveyance
  • Vehicles used in auto business
  • Vehicles with lt 4 wheels
  • Vehicles furnished or available

8
Out of State
  • Policy automatically adjusts to comply with the
    financial responsibility or no-fault law of
    another state

9
Other Insurance
  • Two auto policies cover a loss
  • Each company pays pro-rata share
  • Insured driving someone elses car
  • Insurance on borrowed car is primary
  • Insureds policy is excess

10
Medical Payments (B)
  • All reasonable medical and funeral expenses
    within three years of date of accident
  • Insured
  • Named insured and family members while occupying
    a motor vehicle or when struck while walking
  • Other persons while occupying covered auto

11
Exclusions
  • Injuries sustained occupying vehicle with fewer
    than 4 wheels
  • Using a public or livery conveyance
  • Using as residence
  • Work injuries covered by wk comp
  • Using vehicle without reasonable belief of
    permission

12
Uninsured Motorist (C)
  • Coverage applies when other person is at fault
    and has no liability insurance
  • Insured
  • Named and family members, others riding in
    covered auto, and anyone legally entitled to
    recover (surviving spouse)

13
Uninsured Vehicles
  • Vehicles with no applicable bodily injury
    liability coverage
  • Vehicles with less than required coverage
  • Hit and run vehicles
  • Vehicles where the bonding or insurance company
    is insolvent

14
Uninsured exclusions
  • No uninsured motorists coverage
  • Settling a claim w/o insurers consent
  • Using vehicle as public or livery conveyance
  • Using w/o reasonable belief of permission
  • Workers comp or self-insurer

15
Underinsured motorists
  • Different from un insured motorist
  • Other motorist has coverage, but it is less than
    your actual damages
  • Pays up to your limit
  • Ex 25/50 (other motorist) you add 100
    underinsured -- 100 damage 125 damage

16
Damage to auto (D)
  • Insuring agreement two optional coverages
  • Collision
  • Hits another car
  • Dented as parked
  • Other than collision named perils
  • Covered autos
  • Vehicle listed in declaration newly acquired
  • Non-owned temporary or substitute
  • Transportation expenses modestly covered for
    loss of use

17
Exclusions
  • Use as public or livery conveyance
  • Damage from wear and tear, etc.
  • Radioactive contamination/war
  • Electronic sound equipment, unless permanently
    installed
  • Other electronic equipment (cell phones)

18
Exclusions
  • Tapes, records, discs
  • Destruction or confiscation by governmental or
    civil authority
  • Loss to trailer, camper body or motor home not
    shown in declarations
  • Using non-owned w/o permission
  • Radar detection equipment

19
Exclusions
  • Custom furnishings
  • Using vehicle in racing facility
  • Non-owned in auto business (ex mechanic damages
    car)

20
Limit of Liability
  • Lesser of
  • Actual cash value
  • Cost to repair or replace
  • (both less deductible)
  • Other sources of recovery
  • Insurer pays pro-rata share
  • Non-owned part D coverage is excess insurance
    on vehicle is primary (deductible ex)

21
Duties
  • Must notify insurer promptly
  • Cooperate in investigation of accident and
    defense of claim
  • If sued, forward legal papers to insurer
  • Release medical information submit to a physical
    exam
  • UM notify insurer of hit and run
  • Reasonable steps to limit damage

22
General provisions
  • The PAP covers only while driving in the US and
    its territories or possessions, Puerto Rico, or
    Canada
  • NOT covered driving in Europe, or Mexico, for
    example
  • Termination
  • Cancellation insurer has 60 days then must
    insure unless premium not paid,
    misrepresentation, license revoked
  • Nonrenewal must give 20 days notice
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