What Does Your Part-A Cover?

WHAT DOES YOUR PART-A (PERSONAL AUTO POLICY LIABILITY) COVER?

PART-A, your liability coverage of your personal auto insurance coverage focus on four questions:

What's covered: It provides bodily injury and property damage liability protection for the insured who is legally responsible for an auto accident. Further more, the insurance company agrees to pay for the defense cost until the limits of liability has been exhausted by payment of judgment or settlement.

What exclusions apply: Your personal auto policy doesn't provide coverage in every situation (most important ones are the denial of coverage if someone intentionally causes an accident, and denial of a coverage to any insured other than a family member using the covered auto, who uses the vehicle without a reasonable belief that he is entitled to do so.)

Note: special exclusions pertain business situations.

Who are the insured: From the policyholder's standpoint, named insured, family members, and spouse yet there is also coverage available for any other person using a covered vehicle.

What happens when other insurance covers a claim: Most common situation for this is when a person drives a friend's car. He is covered under his own policy as well as the car owner's policy. In situations like these, it is said that "insurance follows the car". In other words, the car owner's insurance becomes the primary coverage until the limits are exhausted.