Are you aware that many insurance companies write exclusions in their policies that preclude a resident-relative from receiving the benefits of the insurance policy you purchased? For example, if the husband is driving the insured auto with his daughter or wife as a passenger, and runs a red light, and causes serious injury to the family member occupants, many insurance policies preclude compensation for his injured family members. Does this make any sense? An auto insurance policy that does not protect the ones that you loved most? In the event that the driver’s conduct was deemed reckless, the criminal court would still prosecute him for his conduct. Yet no civil remedy by way of an insurance claim may exist.
Ask your agent when you purchase or renew your auto policy if you are covered for this situation. Some companies do not exclude this coverage scenario, while many others do. If the injured party was the breadwinner for the family, and the auto policy excludes compensation, where does that leave you. Be careful when purchasing coverage and run this scenario by your agent. This unknown exclusion is found in many of the major insurance companies policies, including Allstate, the ‘good hands people’.
See the Third District Court of Appeals opinion of Allstate Insurance Company v Eyster, 189 Ohio App.3d 640 (decided August 9, 2010). Please consult our firm for more information and visit our website.