Fleet Auto Insurance Policies

A mention of the topic of auto insurance generally brings to mind the myriad policies that cover the individual owners and drivers and individual cars and trucks that operate every day on the streets and highways of the United States. In many cases, though, fleets of greater or lesser numbers of vehicles owned by a single entity and operated by many different individuals are sent out on the roads in order to carry out the business of their owners. The existence of such fleets creates unique issues in the area of motor vehicle insurance.

Per-Person Liability for Auto-Insurance

Insurance companies can limit liability in automobile insurance policies by setting a per person limitation on the amount of benefits that will be paid under the policy for bodily injury to or the death of one person per accident. Whether the limitation is stated as person or each person makes no difference. Such limitations on liability are necessary. Without them, an insurance company could be at risk for more than the funds that it has to pay its claims. The insured pays a certain amount, called a premium, based in part upon the policy limits.

Per-Occurrence Liability for Auto Insurance

An automobile insurance policy can limit liability to a certain dollar amount for each accident or occurrence of loss suffered by an insured. Generally, per accident and per occurrence mean the same thing. One occurrence is a single, uninterrupted cause that can result in one or a number of bodily injuries or property damage. For example, if an insured's vehicle hits a car and that collision breaks the steering gear on the insured's vehicle causing it to hit another car, then only one accident occurred within the meaning of the insurance policy limitation. Therefore, there can be multiple claims of injuries and damages that arise from one accident.

Conflict of Laws Issues in Motor Vehicle Insurance Disputes

Motor vehicles, by the nature of their mobility, freely move among the states. Accidents can occur in an insured's home state or another state. The laws of the states can differ on how they interpret the terms of an insurance policy. Which law should be applied is the subject of rules for conflict-of-laws or choice-of-laws decisions.

Stacking Provisions for Auto-Insurance

Often more than one automobile insurance policy is in effect for vehicles involved in a collision. Sometimes a single insurance policy can contain several types of coverage that could be applied to the accident. When these situations exist, an insured or the passengers in the insured's vehicle may seek to combine the benefits of the multiple coverage provisions in the policy or policies. This is called "stacking." It can also be called "pyramiding."