Auto Accidents Newsletters

Setoff Provisions in No-fault Insurance Policies

When an insured files a lawsuit against an insurance company, the insurance company can file a counter claim against the insured to reduce the amount of the insured's claim by an amount that the insurance company claims that the insured owes to it. The amount owed can be unpaid premiums or funds received by the insured from other sources that would exceed the amount of the insured's loss. This is called a setoff, an offset provision, or a benefit-set off provision. In the case of no-fault insurance, setoffs exist for a number of benefits that an insured could obtain due to an automobile accident.

Personal Injury Automobile Accident Cases

If an insurance policy covers accidents of travel, it must be shown that a death or disability resulted from such a risk before benefits can be paid. A death caused by the collision of automobiles is clearly within the ordinary interpretation of accidental means. This result is not prevented by any negligence of the insured. Courts feel that clauses of this nature must be given a reasonable construction. If the insurance terms are not expressly limited, some courts will extend coverage to situations where the use of an automobile was not an important factor or where the particular loss was fairly removed from an event that involved the use of an automobile. Other decisions, however, are not as generous. Some courts will not trace back an injury to an automobile or extend benefits to a particular loss or expense.

Assigned Risk Coverage

State assigned risk plans basically operate by creating a pool made up of those drivers who would otherwise not be able to obtain necessary insurance coverage and apportioning the responsibility for providing coverage on the members of that pool among the insurers who write motor vehicle policies in the state. As a consequence of the unique and higher-risk nature of the assigned risk business, state laws covering assigned risk plans often contain detailed provisions concerning application for, participation in, and termination of assigned risk coverage.

Role of Auto Accident Reconstruction Experts

Automobile accidents can be very messy. In order to determine what led to an accident, an automobile accident reconstruction expert can be employed. The expert will try to determine the most probable reason for the accident. Automobile accident reconstruction experts use information from the accident scene, witnesses, the damaged vehicles, and other sources to make conclusions about how the accident happened and, sometimes, why it happened. The expert can be called to testify at a trial on his or her conclusions in an effort to help the jury.

Auto Insurance Coverage for Leased and Rented Vehicles

A rental car or leasing company may not be required to provide automobile insurance coverage for its renters or lessees during the rental or lease period. Further, an insurer of a renter or lessor can exclude any liability coverage for their customers. The specific provisions of a vehicle rental or lease agreement should be carefully reviewed to decide whether minimum insurance coverage is provided for renters or lessees.