Newsletters

Automobile Fire Insurance

While the popular impression of the flammability of motor vehicles may be exaggerated due to such things as the manner in which they are portrayed on television and in the movies, cars and trucks do contain flammable materials, and they obtain their motive power through the use of flammable fuel. As a result they occasionally catch fire, causing damage to themselves and to objects around them. Fire coverage under policies of motor vehicle insurance has been devised in order to reimburse vehicle owners for the loss and damage sustained in such incidents.

Cancellation of Auto Insurance for Nonpayment of Premiums

The mandatory nature of motor vehicle insurance in the United States means that the system under which cars and trucks are insured involves a three-part relationship among the vehicle owner or operator, the insurer, and the government of the state where the car or truck is located. The heart of the auto insurance business relationship, though, is the policy of insurance, a bilateral contract under which the insurer agrees to provide the requested insurance coverage on a vehicle and pay valid claims and the insured agrees that he or she will in return pay the premiums due under the policy. When an insured fails to make timely payment of the premiums or fails to pay them at all, the insurer's ultimate recourse is to cancel the policy for nonpayment of premiums.

Overview of Automotive Products Liability Law

The everyday operation of millions of cars and trucks on the streets and highways of the United States, and the massive resulting toll in deaths, personal injuries, and property damage caused by motor vehicle accidents, have inevitably created a situation in which the manufacturers and sellers of motor vehicles are implicated as potential defendants in legal actions seeking compensation for the losses arising from such accidents. Products liability law, a subset of the branch of the legal system called tort law, provides the legal standards for determining the potential liability of motor vehicle manufacturers and their dealers in such cases. (The principles of products liability law also apply to non-automotive products, but our discussion here will focus on the law of products liability as it relates to motor vehicles.)

Auto Insurance Coverage for Tow Trucks

The frequency of occurrence of vehicular accidents and various kinds of mechanical breakdowns that cause the disablement of cars and trucks on the streets and roads of the United States necessarily results in an extensive use of tow trucks to assist in the resolution of such situations and the removal of affected vehicles from the scenes of such accidents and breakdowns. The operations of tow trucks, and the variety of risks involved in their use, create a number of unique concerns in the area of motor vehicle insurance.

Liability of Non-Manufacturing Seller in Automotive Products Liability Cases

A plaintiff in an automotive products liability case against the manufacturer or seller of a motor vehicle generally has to prove that the vehicle at the time of sale contained a defect that created an unreasonable risk of death, personal injury, or property damage when the vehicle was used for its intended purpose and that the defect caused an accident or similar incident, such as a vehicle fire, that resulted in the damage or loss for which the plaintiff seeks to recover damages. Under traditional legal principles, any party involved in the chain of transactions leading up to the retail sale of the vehicle, including the dealer who sold the car or truck, could be held liable in such a case. Motor vehicle dealers, like any party against whom a legal action is brought, would like to limit their potential liability to matters for which they can be shown to have a direct and undeniable responsibility.