Auto Accidents Newsletters

Impact of Riders/Endorsements on Auto Insurance Policies

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.

Cancellation of Auto Insurance for Misrepresentations in Application

While an insurer may sometimes cancel a policy for misrepresentations made during the application process, the insurer's right to do so may be limited by legal principles that take into consideration such things as the nature and extent of the misrepresentations made, the insurer's own diligence in determining the true facts of the situation, and the consequences for innocent third parties who have in effect placed their reliance on the insurer's action in issuing a policy whose issuance it has now come to regret.

Per-Occurrence Liability for Auto Insurance

An automobile insurance policy can limit liability to a certain dollar amount for each accident or occurrence of loss suffered by an insured. Generally, per accident and per occurrence mean the same thing. One occurrence is a single, uninterrupted cause that can result in one or a number of bodily injuries or property damage. For example, if an insured's vehicle hits a car and that collision breaks the steering gear on the insured's vehicle causing it to hit another car, then only one accident occurred within the meaning of the insurance policy limitation. Therefore, there can be multiple claims of injuries and damages that arise from one accident.

Exclusions for Violations of Law in Motorists Insurance

Insurance companies do not defend their insureds in criminal proceedings based on automobile collisions. However, nearly all automobile collisions result from infractions of traffic regulations. The fact that an insured was violating a law at the time a covered accident occurred does not relieve an insurance company's duty to defend that insured in a civil action or its duty to pay for the injuries or damages caused by the insured.

Trailer Exclusions in Auto Insurance

There are all kinds of trailers. There are mobile home trailers, boat hauling trailers, car hauling trailers, horse trailers, and campers. Some automobile insurance policies exclude all trailers from coverage. Some permit coverage of a trailer only if it is designed for use with a private passenger automobile and is described in the insurance policy. Commercial truck trailers and semi-trailers have their own insurance needs and are beyond the scope of this article.