Two Unusual Car Insurance Clauses

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A car insurance policy is a legal document containing an agreement between a car insurance company and a driver. According to the policy, the insurance company takes responsibility for covering the financial risks of a car accident or auto theft. This might seem like a simple deal yet the process is a lot more complicated. The auto insurance policy contains a lot of clauses that regulate the scenarios where the policy applies. A lot of these clauses are meant to protect the insurance agency so that it doesn’t pay for all the reckless scenarios when the policy holder is at fault. In the following lines we will be covering some unusual car insurance clauses that you have probably never heard of.

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The omnibus clause
It is a well known fact that the law prohibits drivers from operating a vehicle for which they do not have a liability coverage. In other words it is a crime to drive a vehicle without having a car insurance for that vehicle. However, few people are aware of the fact that you can you can use another car insurance policy in order to extend coverage to the uninsured vehicle. In order to do this you need the permission of the car insurance policy holder. This is an additional clause but certain states force all insurance agencies to provide it. Due to the fact that auto insurance is mandatory, a car insurance policy should not limit the people covered by the vehicle liability policy. Therefore if you or a friend of yours owns an uninsured vehicle which you plan on driving, you can include it in your current car insurance policy. This is probably one of the least known car insurance clauses.

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Key in the car clause
The key in the car clause is one of the most controversial car insurance clauses. As you already known, the insurance agency also covers stolen vehicles. What you probably don’t know is that the policy does not apply to situations where the driver leaves the key in or on the car. This means that the auto insurance company does not take financial responsibility when you deliberately or unwillingly ignore the importance of your car’s security. What people don’t know is that this clause is a restrictive exclusion and the insurance agent is obliged to highlight the clause when selling the policy in order to avoid any future misunderstandings. This argumentation can be used in a law suit in order to fight the insurance company’s decision to void your policy. However, it can be very hard to prove that you were not informed of the key-in-the-car clause so it is best if you avoid a situation like this.