Overview of Automobile Coverages.ppt

Overview of Automobile Coverages 1. Automobile liability coverage 2. Medical payments coverage 3. Physical damage coverage, comprehensive and collision 4. Uninsured motorists coverage General Nature of Personal Auto Policy 1. Designed to cover three types of loss: legal liability injury to insured or family members damage to the auto itself 2. Subject to limitations, the policy covers: others while driving the insured auto the named insured and family while driving other autos Personal Auto Policy Eligibility 1. Auto owned by individual or husband wife 2. Private passenger automobile 3. Pickup, van, or panel truck that has a GVW of less than 10,000 lbs. is not used for delivery or transportation of goods unless incidental to business of installing or repairing furnishings or equipment for farming or ranching PAP Policy Format Part A Liability Part B Medical payments Part C Uninsured motorist coverage Part D Coverage for damage to your auto Part E Duties after an accident or loss Part F General provisions PAP Liability Insuring Agreement 1. Insurer promises to pay damages for “bodily injury” or “property damage” for which any “insured” becomes legally responsible because of an auto accident. 2000 edition of the PAP is written with split liability limits (e.g., 20/40/15). 2. Key elements in determining coverage, then, are whether the individual is an “insured,” and whether the auto being operated is a covered auto. “Insured” as used in this part means: 1. You or any “family member” for the ownership, maintenance or use of any auto or “trailer.” 2. Any person using “your covered auto.” 3. For “your covered auto,” any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part. “Insured” as used in this part means: 4. For any auto or “trailer,” other than “your covered auto,” any person or organization but only with respect to legal responsibility for acts or omissions of you or