Agreement
Here is what the insurance company promises under the UM coverage of our fault-based policy:
We will pay damages, other than punitive or exemplary damages, for bodily injury, which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle. The bodily injury must be caused by accident and arise out of the ownership, maintenance or use of the uninsured motor vehicle.
Determination whether an insured person is legally entitled to recover damages or the amount of damages shall be made by agreement between the insured person and us If no agreement is reached, the decision will, except in Nevada, be made by arbitration.
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Explanations
The first paragraph above means that your insurance policy will kick in when you have an accident with an at-fault uninsured driver. The policy refers to this scenario as being “legally entitled” to recover damages from the uninsured motorist. In a nutshell, claims that you would have made against the uninsured at-fault driver are paid by your own policy. The second paragraph goes on to say that should you have a dispute with your insurance company over whether or not you are covered, or how much your insurer should pay for your damages, your policy requires you to take the matter to arbitration.
Exclusions
You may not collect benefits under this section of the policy if any of these conditions exist:
This coverage does not apply to bodily injury sustained by an insured person:
(1) while occupying a motor vehicle other than an insured motor vehicle, owned by any insured person, or leased to any insured person, under a written contract for a period of six months or longer, or through being struck by such a motor vehicle.
(2) if that person or the representative of that person, without our written consent, makes any settlement or prosecutes to judgment any action against any person who may be legally liable therefore;
(3) while occupying your auto when used to carry persons or property for a charge. This exclusion does not apply to shared-expense car pools.
Uninsured Motorist Coverage shall not apply to the benefit of any insurer or self-insurer under any workers’ compensation or disability benefits law or any similar law or to the direct benefit of the United States, any state or any political subdivision thereof.
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Explanation/Examples
(1) If you have an accident with an uninsured driver while you are in your own car which is not listed on your policy, your policy won’t give you UM benefits. This also applies to a car leased for 6 months or longer. Example: Suppose your spouse leases a vehicle for work, which is not listed as an insured vehicle on your family’s auto policy. Your spouse is driving that leased vehicle when a collision occurs with an uninsured motorist. Your spouse will not be able to collect benefits for UM under your auto policy. He or she may be entitled to recover from other sources, such as his or her separate insurance policy on the leased vehicle. If the vehicle is used solely for work, perhaps the employer lists it on the company policy.
(2) If you are involved in an accident with an uninsured at fault driver or car, you will get no UM compensation for injuries if you settle your claim without the consent of the insurance company.
(3) If you are using your car to transport people (i.e. a taxi) or property (i.e., a delivery van) for money, you cannot collect UM benefits under your policy should you have an accident with an uninsured motorist. This is generally the case unless you are sharing expenses for a carpool. |
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