How Do Automobile Insurance Policies Work?

Finding Insurance Coverage

How do you determine whose automobile policy may apply to your particular situation? Whether you are the driver, the passenger, or a guest in someone else’s vehicle, there are statutory and contractual dynamics which determine whose policy you are covered under.

Automobile insurance can cover, depending on the terms of the policy, the insured vehicle, its owner, the driver and all occupants of the vehicle.

Automobile insurance can also extend to cover family members (of the named insured on the policy) who reside in the same household.

There are minimum bodily injury liability limits that vary from state to state. It is not unusual for corporations and wealthier individuals to carry higher limits or excess coverage.

If the defendant driver was an employee on duty at the time of the accident, the employer’s automobile insurance coverage will apply.

The insurance company of the person who caused the accident will most likely refuse to tell you what the automobile’s policy liability limits are on that policy. However, you not only can get that information by filing a law suit, but both Maryland and Virginia have statutory provisions which require the liability insurance carrier to provide you with the information concerning the amount of available insurance coverage in certain situations.

If you have any questions about which policies you might be covered under in any particular situation, just give us a call.