Personal Automobile Policy
Insured's Statements
The first page of the policy, also referred to as the
“declaration page” or “dec page”, contains information about
the insureds, the car, and other details particular to the
individual policy. These include the insured’s name,
address, a complete description of the car - its year of
manufacture, make, model, vehicle identification number
(VIN), and the place of garage. The insured is required to
state whether he has had any insurance company cancelling
his auto policy during the past year. The policy also
contains a statement that the named insured is the sole
owner of the insured automobile except maybe the lender
bank if the vehicle is financed or some other entity that
rightfully owns the car if the vehicle was leased.
Insured's Duties
Below are an insured car owner’s responsibilities after an
accident.
Notice of Accident – The insured has the responsibility to
report to the insurance company promptly of any accident
within a reasonable period of time. Furthermore, the insured
is obligated to promptly forward any notices or legal papers,
such as police accident reports, received in connection with
an accident.
Cooperation with Insurer – As in other liability policies, the
insured is required to cooperate with the insurer. This
requirement applies to the named insured of the auto
insurance policy as well as any person included as an
insured because he operates the insured car with the vehicle
owner’s permission.
Medical Reports – Proof - An injured person, or his
representative, is required to give written notice of claim to
the insurance company as soon as practicable. The injured
claimant is also expected to give authorization to enable the
insurer to obtain medical records, and to submit to physical
examination by the insurer’s chosen physicians when and
as often as the insurance company may reasonably require.
Uninsured Motorist Coverage - In a hit-and-run accident, the
insured is expected to promptly notify the police and forward
all related legal documents to the insurance company as
soon as practicable.
Damage to the Insured Vehicle - After a loss, the insured is
expected to take reasonable steps to protect the property
from further damages. The insurance company will
reimburse the named insured for expenses incurred in this
course of protecting further loss.
The insured must allow the insurer to inspect the damages
before repairing the car.
Subrogation – Subrogation is a procedure for an insurer to
recover loss paid to an insured from at-fault third parties.
The PAP insurance form contains a provision that is similar
to the Subrogation clause found in other forms of property
and liability policies. The Personal Auto policy specifically
states that the insured is forbidden to do anything after an
accident that may jeopardize the company’s right to
subrogate against third parties.
However, if the insured has waived his rights against a third
party prior to a loss, this provision does not apply, and the
insured is not considered to have breached the terms of the
policy.
When Covered
The Personal Automobile policy form is effective at 12:01
AM. Some insurance companies do not backdate a policy.
For example, an insured cannot have a policy take effect at
12:01 AM if he binds the policy at 2:00 PM later that
afternoon.
Insured's Statements
The first page of the policy, also referred to as the
“declaration page” or “dec page”, contains information about
the insureds, the car, and other details particular to the
individual policy. These include the insured’s name,
address, a complete description of the car - its year of
manufacture, make, model, vehicle identification number
(VIN), and the place of garage. The insured is required to
state whether he has had any insurance company cancelling
his auto policy during the past year. The policy also
contains a statement that the named insured is the sole
owner of the insured automobile except maybe the lender
bank if the vehicle is financed or some other entity that
rightfully owns the car if the vehicle was leased.
Insured's Duties
Below are an insured car owner’s responsibilities after an
accident.
Notice of Accident – The insured has the responsibility to
report to the insurance company promptly of any accident
within a reasonable period of time. Furthermore, the insured
is obligated to promptly forward any notices or legal papers,
such as police accident reports, received in connection with
an accident.
Cooperation with Insurer – As in other liability policies, the
insured is required to cooperate with the insurer. This
requirement applies to the named insured of the auto
insurance policy as well as any person included as an
insured because he operates the insured car with the vehicle
owner’s permission.
Medical Reports – Proof - An injured person, or his
representative, is required to give written notice of claim to
the insurance company as soon as practicable. The injured
claimant is also expected to give authorization to enable the
insurer to obtain medical records, and to submit to physical
examination by the insurer’s chosen physicians when and
as often as the insurance company may reasonably require.
Uninsured Motorist Coverage - In a hit-and-run accident, the
insured is expected to promptly notify the police and forward
all related legal documents to the insurance company as
soon as practicable.
Damage to the Insured Vehicle - After a loss, the insured is
expected to take reasonable steps to protect the property
from further damages. The insurance company will
reimburse the named insured for expenses incurred in this
course of protecting further loss.
The insured must allow the insurer to inspect the damages
before repairing the car.
Subrogation – Subrogation is a procedure for an insurer to
recover loss paid to an insured from at-fault third parties.
The PAP insurance form contains a provision that is similar
to the Subrogation clause found in other forms of property
and liability policies. The Personal Auto policy specifically
states that the insured is forbidden to do anything after an
accident that may jeopardize the company’s right to
subrogate against third parties.
However, if the insured has waived his rights against a third
party prior to a loss, this provision does not apply, and the
insured is not considered to have breached the terms of the
policy.
When Covered
The Personal Automobile policy form is effective at 12:01
AM. Some insurance companies do not backdate a policy.
For example, an insured cannot have a policy take effect at
12:01 AM if he binds the policy at 2:00 PM later that
afternoon.
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MY Insurance Agency
The materials on this website are meant to
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
| Next... |
Financial Responsibility Laws
The Personal Auto policy form has a
provision that states that the insurance
afforded will comply with the regulations of
any Motor Vehicle Financial Responsibility
Law of the state which applies to liability
arising out of the vehicle listed in the auto
policy. In all states except New
Hampshire as of this writing, when an
insured is subject to the Financial
Responsibility Laws of his state, the
policy's liability to third parties is
absolute. That is, even if the insured
voided his policy by breaching the
agreement terms, such as making false
statements, or failing to cooperate with the
insurer after the accident, the insurance
company must still pay, subject to the
policy limits. The insurance company,
after having paid a claim under such
situation, is entitled to reimbursement
from its policyholder.
Out-of-State Coverage - If the insured
becomes involved in an accident in an
another state and the minimum liability
limits required under that state's laws are
higher than those afforded in the policy he
is carrying, the standard Personal
Automobile policy form will provide such
required limits.
If that state’s laws mandate that a non-
resident carries other types of insurance,
the policy automatically provides minimum
limits for such types of compulsory
coverage.
EXAMPLE: An insured from in a state that has
no compulsory no-fault laws drives and is
involved in an accident in another state
where such coverage is mandatory even for
non-residents. The Personal Automobile
policy form will automatically provide no-fault
coverage.
The Personal Auto policy form has a
provision that states that the insurance
afforded will comply with the regulations of
any Motor Vehicle Financial Responsibility
Law of the state which applies to liability
arising out of the vehicle listed in the auto
policy. In all states except New
Hampshire as of this writing, when an
insured is subject to the Financial
Responsibility Laws of his state, the
policy's liability to third parties is
absolute. That is, even if the insured
voided his policy by breaching the
agreement terms, such as making false
statements, or failing to cooperate with the
insurer after the accident, the insurance
company must still pay, subject to the
policy limits. The insurance company,
after having paid a claim under such
situation, is entitled to reimbursement
from its policyholder.
Out-of-State Coverage - If the insured
becomes involved in an accident in an
another state and the minimum liability
limits required under that state's laws are
higher than those afforded in the policy he
is carrying, the standard Personal
Automobile policy form will provide such
required limits.
If that state’s laws mandate that a non-
resident carries other types of insurance,
the policy automatically provides minimum
limits for such types of compulsory
coverage.
EXAMPLE: An insured from in a state that has
no compulsory no-fault laws drives and is
involved in an accident in another state
where such coverage is mandatory even for
non-residents. The Personal Automobile
policy form will automatically provide no-fault
coverage.
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