Omnibus Clauses in Auto Insurance

An omnibus clause in an automobile liability insurance policy extends coverage under the policy to those using an insured automobile with a named insured's express or implied permission. The clause is also known as an additional insureds clause. State statutes generally require automobile liability insurance companies to provide omnibus clauses in their insurance policies.

Uninsured Motorists Insurance and Government Vehicles

After an automobile collision, many things can affect whether or not an injured person can recover his or her damages from the owner or driver of the vehicle that negligently caused his or her injuries. Among those factors is whether the vehicle was owned by a governmental entity, like a city or state. Often, governmental entities have immunity from suit by injured persons. In those cases, an injured person may seek to obtain insurance benefits under his or her insurance's uninsured motorist provision. Because the injured person is unable to sue the governmental entity, the vehicle may be considered uninsured for purposes of the insurance policy.

Setoffs and Uninsured Motorist Insurance Policies

Some state statutes allow uninsured motorist insurance companies to setoff amounts that an insured received from workers compensation, Social Security, and settlements with a liability insurance company. Therefore, if an insured were injured in a car accident while driving in the course of his or her employment, the insurance company could offset the uninsured motorist benefits in the full amount of the insured's workers compensation judgment.

Auto Insurance Coverage for Underage Drivers

Age and gender are two of the criteria used by insurers in the process of determining risks in the writing of motor vehicle insurance policies. As a result, auto insurance policies sometimes contain provisions that exclude from coverage incidents that occur while a covered vehicle is being operated by a driver under a specified age, or by a male driver under a specified age. Questions of coverage arise when, as is inevitable, such incidents of operation by underage drivers take place and result in injury or property damage.

Effect of Federal Motor Vehicle Safety Standards on Automotive Products Liability Cases

The National Highway Traffic Safety Administration, commonly known as NHTSA, an agency of the United States Department of Transportation, enacted an initial set of Federal Motor Vehicle Safety Standards, or FMVSS, in the late 1960s. NHTSA has amended and updated the FMVSS, and has added new standards to the original group of FMVSS, since that time. Every new motor vehicle sold in the United States is required to comply with all of the FMVSS that are applicable to that type of vehicle. (Due to differences in the configurations of passenger cars and trucks, certain of the FMVSS are limited in their application to one type of vehicle or the other.) In an automotive products liability case, a legal action in which a plaintiff seeks to recover damages from the manufacturer or seller of a motor vehicle for death, personal injury, or property damage caused by an alleged defect in the design or manufacture of the vehicle or by the failure to warn of a danger inherent in its use and operation, the FMVSS sometimes play a role in determining the outcome of the dispute between the parties.