| Auto Insurance Coverage for Newly Acquired Vehicles |
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| 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. More... |
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| Limit of Liability Clauses in Auto Insurance |
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| Limit of liability clauses, otherwise called limits of liability clauses, generally provide that an insurer's total liability to a particular claimant arising out of a specific occurrence will be limited to an amount set forth in the policy, despite the specified limits of any other coverage or coverage on any other vehicle. More... |
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| Underinsured/Uninsured Motorists Stacking Provisions |
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| Underinsured motorist coverage, sometimes abbreviated UIM, and uninsured motorist coverage, sometimes abbreviated UM, are included in motor vehicle insurance policies as a consequence of the fact that many owners and operators of cars and trucks either do not maintain adequate insurance coverage on their vehicles or operate those vehicles without any insurance coverage at all. More... |
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| Setoffs and Underinsured Motorist Insurance Policies |
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| An automobile insurance policy may contain a set-off clause, which provides that an insured cannot recover bodily injury benefits under both the liability coverage part and the underinsured motorist coverage part of the policy. When an insured fully recovers his or her losses under the liability provision of an automobile insurance policy, the insured could not then seek to recover under the underinsured motorist provision of the same policy. More... |
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| Cancellation of Auto Insurance for Acquisition of New Policy |
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| If an insured acquires a new policy covering an already insured vehicle, the original insurer will have an incentive to cancel its own policy to limit its exposure and avoid having to pay a "windfall" recovery in the event that an occurrence calling for payment under the policy should take place. More... |
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