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.

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.

Collision Coverage

Under the collision coverage provision of a policy, an insurer agrees to pay an insured for damage to a covered vehicle caused by an accidental occurrence that is typically described as involving a "collision" or an "upset."

Setoffs and Underinsured Motorist Insurance Policies

An automobile insurance policy may contain a set-off clause, which provides that an insured cannot recover bodily injury benefits under both the liability coverage part and the underinsured motorist coverage part of the policy. When an insured fully recovers his or her losses under the liability provision of an automobile insurance policy, the insured could not then seek to recover under the underinsured motorist provision of the same policy.

Medical Payments Coverage in Auto Insurance

Physical injuries requiring varying degrees of medical attention that range from the superficial to the extensive are a common consequence of motor vehicle accidents. Medical payments provisions have been included in auto insurance policies in order to provide insured persons and occupants of covered vehicles reimbursement of payments made in obtaining such medical treatment after an accident.