Re: [DML] Insurance?

[mike.griese@xxxxxxxxxxxxxxxx]

Mike - that is not the way it works.  There are two different insurance coverages
at issue here - liability and collision (I'll lump comprehensive in with collision in 
this instance because they are similar enough for this discussion).  Liability 
covers damage that the car does to other people and/or property.  It pays 
for injuries caused to other people, damage to other cars, buildings, etc.  Collision 
covers damage done to your car in the event of an accident.  The collision part 
of the policy is generally the part that has the mileage limitations and is where
most of the difference of opinion arises in terms of vehicle value.  All the talk 
about stated value policies is really setting the maximum amount the insurance 
company will pay as the result of physical damage to the car.  The thinking 
with limited use policies is that if you restrict the amount of time the car is on the 
road and the purposes of the trips, you reduce the risk of a collision and can 
therefore charge smaller premiums.  There has been a lot of statistical analysis
done to determine that most accidents occur during trips that happen during
peak traffic times (going to and from work during rush hour) and at places 
where there will be a concentration of cars - such as shopping centers,
grocery stores, etc.  This is why limited use policies don't let you drive
the car under those conditions.  

Your insurance policy covers your car, no matter who drives it or how their 
insurance is written.  You may have a clause in your policy that states that it will 
cover you as a driver if you have an accident in a car not owned by you, such as 
a rental car, but that is usually for liabilty, not collision damage.  Since you are the 
owner, you assume any liability for damages done by your car and to your car, 
no matter who drives.  The assumption is that you have granted permission to the 
other driver.  So, the bottom line is, make sure you abide by whatever limitations
are stated in your insurance policy - no matter who is behind the wheel.

--
Mike


-------------- Original message from Mike Green <mikedx@xxxxxxxxx>: -------------- 


> Ok, what I mean is, say if you are insured for 7,500 miles per year. 
> you give your insurance company a reading of 12,000 and you set on 
> your way 
> 
> during the 12 months, you do 7,000 miles and somebody else, who is 
> also insured, say insurance that covers any car, does a further 2,000 
> miles 
> 
> this brings us to 9,000 miles. you have only done 7,000 miles, and 
> your policy should still be valid. how do you prove that youve only 
> done 7,000 when the next reading says 21,000 miles for the renewal (or 
> a claim) 
> 
> I may just be being pedantic, but its an issue thats always puzzled 
> me, not just on deloreans but any regular car! 
> 
> Mike 
> 

[Non-text portions of this message have been removed]





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