Business Use Exclusion in Motorist Insurance

Some motorist insurance policies exclude coverage for injuries and damages if they occur while a vehicle is being used for a business purpose. For example, if a driver is using his or her personal van to make deliveries for the driver's home-based business and causes a collision with another vehicle, the driver's insurance company would refuse to pay for the damage caused to the other vehicle and for any injuries to those riding in it. In effect, the exclusion causes a vehicle to drive in and out of insurance coverage depending on its driver's particular mission.

Auto Insurance Coverage for Newly Acquired Vehicles

When a vehicle owner has an automobile insurance policy and acquires a new vehicle, the new vehicle will be automatically covered to the same extent and policy amounts as the insured's other insured vehicles, if the insurance policy has a provision for newly acquired vehicles. A newly acquired vehicle can be a replacement vehicle or an additional vehicle. The term also includes purchased and leased vehicles.

Subrogation in Underinsured/Uninsured Motorist Cases

When an insurer pays a benefit under a policy provision for underinsured motorist coverage or uninsured motorist coverage, it is in effect paying a debt owed by the underinsured or uninsured driver, the person who is actually liable for the damages arising as a result of the event that led to the insurer having to make the payment. An insurer who makes such payments has a right, the right of subrogation, by which it is permitted to take legal action against the underinsured or uninsured motorist in an attempt to recover as much as possible of the amount the insurer has paid out. The insurer's subrogation right will only have value, as a practical matter, to the extent that the underinsured or uninsured driver has assets that can be seized by legal process to satisfy the judgment that the insurer obtains against the underinsured or uninsured driver in its subrogation action.

Insurer's Right to Subrogation

When one person pays to another person an amount due to the second person by a third person, the first person has a right to recover from the third person the amount paid to the second person. This right of payment is called a subrogation. Subrogation is a doctrine of equity. It is the substitution of the first person in the place of the second person, who had a claim upon the third person. When an insurance company pays its insured for a loss under an insurance policy that was caused by a third party, the insurance company acquires the right of subrogation against the third party.

Intentional Injury Exclusion in Auto Insurance

When a vehicle is involved in an automobile accident, the conduct of an insured may activate the automobile insurance policy's exclusion for intentional injury. Intentional injuries include suicide and assault, among other acts. Even though some states require automobile insurance companies to provide statutory minimum coverage, the companies may exclude coverage for intentional injuries. The intentional injury exclusion prohibits an insured, which caused an intentional injury to himself or herself or to another person, from recovering insurance benefits for that injury. This is a common exclusion in automobile insurance policies. Further, most no-fault statutes contain intentional injury exclusions.