Overview of Auto Loss Exposures and Insurance

Over 35 million auto accidents occur annually in the United States, killing more than 4000 people and producing well over $100 billion in economic loss. Personal auto insurance which protects against many losses associated with auto accidents, is the largest line of property-liability insurance term of premium volume, with year 2000 written premiums of $120 billion. Commercial auto insurance premiums totaled another $18 billion. The largest four personal auto insurers, with national premium market shares shown in parentheses were; State Farm Insurance 19 percent, Allstate. 13 recent, Farmers Insurance 6 percent, Geico 5 percent. All of these insurers are direct writers that primarily rely on exclusive agents to market coverage, and 68 percent of the personal auto insurance market is written by direct writers as opposed to insurers that primarily rely on independent agents and brokers.

The major loss exposures arising out of automobile accidents are; 1/legal liability for ham that you may cause others as a result of negligence, 2/ Bodily Injury to you and members of your family and 3/ property damage to and/or theft of your vehicles. It shows auto insurance coverage that are available with the personal auto policy. This contract, along with very similar versions offered by many insurers, is the largest selling type of auto policy and is the focus of this section. The personal auto policy includes the all basic four types of coverage. In a majority of states, these non-auto coverages, which include individual and group medical expenses coverage, disability insurance, life insurance and social security represent major sources of payment of auto-insurance or auto related losses.

Damage or other losses to Autos; The personal auto policy providers provide two optional coverages for damage and theft to vehicles; collision coverage and other than collision coverage. Theses coverages apply to autos listed in the policy and newly acquired autos if requested by the owner within 30 days. Non owned autos, such as an auto that you have permission to use but do not own or use on a regular basis, including a temporary substitute auto includes car rentals, at least for personal use as car rental firms generally do not automatically provide physical damage coverage . Many insurers exclude liability and physical damage coverage for autos rented for business use unless an endorsement to the policy is purchased.

Collision coverage covers the upset of a covered auto or impact with another object. Other than collision coverage covers theft of the vehicle damage. Losses under these coverages are covered above a deductible may differ between the coverages. Losses are paid on a repair cost basis up to the actual.

So all these are the overview of auto loss exposures and Insurance. For more information related to insurance please visit our website.

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