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"Escape Clauses" in Automobile Insurance Policies
An automobile insurance policy may have a provision for "other insurance." When more than one insurance policy provides coverage for a loss, the "other insurance" clause can limit an insurance company's liability by defining the priority in which the policy should pay an insured's claim. There are three types of "other insurance" clauses: (1) pro rata; (2) excess; and (3) escape.
Tort Liability for Use of Emergency Vehicles
The operations of emergency vehicles are a common everyday feature on the streets and highways of the United States. These operations consist of the employment of vehicles that include ambulances, police cars, and fire trucks in response to situations demanding more or less immediate reaction. Due to the frequency of their operations and the nature of their use, emergency vehicles are inevitably involved in accidents that result in the bringing of legal actions seeking to recover damages for death, personal injury, or property damage caused by such accidents.
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.
Automobile Insurance Premiums
Insurance contracts, at their core, are papers that prove a promise by an insurance company to pay benefits under an insurance policy and the payment of money by an insured for that protection. The money paid by the insured is called a premium. The premium is made up of money paid by the insured to the insurance company to cover the insured risk and the administrative costs. Without the payment of a premium, no contract of insurance exists between the insurance company and the insured.
