Newsletters

Named Driver Exclusions in Auto Insurance

Because motor vehicles are often operated by residents of a named insured's household other than the insured himself or herself, the driving records of such household members may create difficulties for the insured in obtaining auto insurance coverage for a car or truck. Named driver exclusions in motor vehicle insurance policies have been devised as a means of resolving this difficulty.

Obligation to Cooperate in Motor Vehicle Insurance

Most automobile insurance policies have a clause that requires an insured to cooperate with the insurance company. The cooperation clause, also known as the cooperation and assistance provision, requires an insured to act in a manner that does not obstruct an insurance company's handling of a claim against an insurance policy. Further, the cooperation clause seeks to stop insureds and claimants from acting together against insurance companies. To breach the cooperation clause, an insured's obstructive conduct must be willful and must prejudice the insurance company.

Liability of Car Distributor/Manufacturer in Automobile Accident Cases

When an automobile accident occurs, there can be many causes. Some causes can make a car distributor or manufacturer liable for the injuries and damages in an automobile accident case. For instance, a manufacturer can be liable for damages caused by its failure to exercise reasonable care in the design of an automobile.

Underinsured/Uninsured Motorists' Consent to Settle

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.

Auto Insurance Coverage for Unlicensed Drivers

Possession of a valid driver's license, while a prerequisite for the legal operation of a car or truck on the public roads, is clearly not a prerequisite for being physically capable of driving a vehicle. As a result, a great many motor vehicles in the United States are driven by persons not legally licensed to do so. Such unlicensed operations, and the vehicular accidents that inevitably result from them, raise a number of issues in the area of motor vehicle insurance.