Duties after an accident or loss applicable to car insurance coverages


This is a group of four conditions that are substantially similar to the insured's duties after loss on the property damage coverage of homeowners policies. This group of conditions applies to all the auto coverages, not just the physical damage coverage.

The first subparagraph requires the insured to give the insurer prompt notice of loss, including details as to how, when, and where the accident or loss occurred. This includes providing the names and addresses of any injured persons and witnesses. The second subparagraph provides that the insured must:

The third subparagraph of the insured's duties after accident or loss relates solely to the uninsured motorist and underinsured motorist coverages. If the accident involves a hit-and-run driver, the insured must promptly notify the police. The insured must also promptly send the insurer copies of legal papers if a suit is brought.

Since it is usually the insured who is suing the other driver in an uninsured motorist or underinsured motorist situation, the insured must provide his or her insurer with a copy of the complaint against the other driver as well as all other legal papers served by both parties in the suit. This is because one of the preconditions to recovery of uninsured motorist or underinsured motorist benefits by the insured is proof that the uninsured motorist or underinsured motorist is legally liable to the insured for damages.

The fourth and final paragraph of the insured's duties after accident or loss applies to the physical damage coverage. The insured must take reasonable steps after loss to protect a covered vehicle and its equipment from further loss. Such reasonable expenses will be reimbursed by the insurer.

An example of reasonable steps might include having the vehicle towed to a repair shop where it can be secured pending examination by the insurer's adjusters. The insured must promptly notify the police if a covered vehicle is stolen. The insured must permit the insurer to inspect and appraise damaged property before it is repaired or disposed of.

In this regard, just as is the case with property coverage of your homeowners policies, you should obtain written confirmation from your insurer that it is permissible to dispose of damaged property before you do so.

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Note: This article was sent to us by: Walt Bielfield at 10072010

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