2 The Personal Auto Policy Geared to the private family exposureNO corporationsNO Partnerships or combined interestPrivate Passenger Autos , pick ups, vans that have a GVW of less than 10,000 poundsLong term leases of 6 months or more
3 The Personal Auto Policy Parts of the Personal Auto PolicyPart A – Liability – this coverages will give you a “shield of defense” and a bag of money to pay for any injury for BI or PD to others that you become legally liable to payPart B – Medical Payments – Co ordinates with PIPPart C – Uninsured Motorist – Will pay for YOUR injuries if the person at fault in the accident has no insurance or low limits of liability.Part D – Damage to YOUR auto (and any non owned autoALL of the above are Primary in an Owned vehicle Excess in a Non owned vehiclePart E – Duties after the accidentPart F – General Provisions
4 The Personal Auto Policy The declarations – gives life to the policy makes it your policyIdentifies the named insured,AddressPolicy periodsCoverageLimitsPremiumAutos coveredIdentifies a “loss Payee”
5 The Personal Auto Policy Part A LiabilityProtects those who have the status of “insured”Payment is only for “Legal Liability”Payment trigger is the legal liability must be for BI or PDWhen a claim is made against someone who has the status of insurED the insurER becomes the insurED’s defense attorney
6 The Personal Auto Policy Part A – Liability Supplementary payments, are paid over and above the policy limits for:Defense and legal expensesPre and/or post judgment interestPremium on bonds including bail bonds up to $250 because of related traffic violationsLoss if earnings of $200 for attendance at trail hearings etc.
7 The Personal Auto Policy Part A – Liability Who is the insuredThe named insuredAnyone who becomes vicariously liable for your actions while drivingAny one using your covered autoAnyone who becomes vicariously liable for the permissive users actions
8 The Personal Auto Policy Part A – Liability Exclusions Intentional injury or damageDamage to property owned by the insuredExcept for damaged to a residence or private garage, damage to property rented to, used by or in the car of that insuredInjury to employeeLiability arising our of the vehicle use as a public livery conveyanceWhile employed or engaged in a business of selling, repairing , servicing, storing or parking vehicles
9 The Personal Auto Policy Part A – Limits and how they work Single Limits a/k/a Combines Single Limits CSL apply to all claims for BI and PD arising from a single accidentSplit Limits, three limits apply one for each person injured in the accident another for ALL BI claims arising out of each accident and a limit for PD only!
10 The Personal Auto Policy Part A – Limits and how they work 100/300/100100,000 a limit for one person in an accident300,000 limit paid for BI in any one accident100,000 limit for PD and only PDProblems available in workbook
11 The Personal Auto Policy Part B – Medical Payments Coverage that pays expenses incurred for the necessary medical funeral services to persons injured by accidents. Payments are without regard or fault or legal liabilities.Pays for expenses incurred for services rendered within three years from the date of the accident
12 The Personal Auto Policy Part C – Uninsured motorist Sometimes the most Misunderstood coverage!Uninsured motorist aka “under”insured motorist pay YOU if you are injured by a motorist who is AT FAULT in the accident and has NO Liability coverage or limits lower than an amount to cover YOUR injuriesNOTE! Uninsured motorist covers only Bodily Injury it does NOT cover Property Damage
13 The Personal Auto Policy Part C – Uninsured motorist “UM” Said another way “UM” is a way for YOU to recover your “Tort rights” when the AT FAULT driver has no ability to pay.Let’s see how this works
14 The Personal Auto Policy Part C – Uninsured motorist “UM” Your CoverageLiability 25/50/25UM 25/50/PIP – BasicYour injuries 35,00035,000 – 10,000 YOUR PIP25,000 left.25,000 is paid you’re your injury under YOUR UMThe AT FAULT driver’s Coverage:PIP and 10 PD ONLY
15 The Personal Auto Policy Part C – Uninsured motorist “UM” Your Coverage:Liability 25/50/25UN 25/50Basic PIPYour injuries 50,000 – YOUR PIP 10,000 = $40,000 – 25,000 form the other drivers liability 25,000 still leaves $15,000 (since to have 25,000 UM , you can use $15,000 to cover your injuriesThe AT FAULT driver’s Coverage:Liability 25/50/25Basic PIP