West Virginia aims to set definition for 'full coverage' auto
A bulletin advises insurance companies to use easily understandable language when discussing coverage options or policy terms with insureds.
West Virginia Insurance Commissioner James A. Dodrill has issued a bulletin discussing “full coverage” auto insurance.
The bulletin highlights an issue with “full coverage” auto insurance as there is no exact or standard definition of “full” auto coverage in West Virginia state law or in the insurance industry.
The term “full coverage” can mean different things to different people, according to the bulletin, which noted the term is ambiguous. Insurance is not a “one-size-fits-all” product, and insurers are generally able to offer different coverages individually based on state laws and the needs and budget of the consumer, according to the West Virginia Offices of the Insurance Commissioner.
The issue with such an approach to insurance is that a “full coverage” insurance policy from an insurance producer or agent might not always result in being offered the same set of uniform coverage. In certain circumstances, it can be misleading, confusing, or even deceptive for an insurer to market a policy as providing “full coverage” to a potential policyholder simply because it meets the state-mandated minimum coverage under West Virginia law or minimum coverage required by a bank or lender if the policy doesn’t include all of the coverages that are available that could be beneficial to the insured.
Commissioner Dodrill issued the bulletin in order to encourage insurance companies, especially insurance producers or agents, to use precise and easily understandable language when discussing specific coverage options or policy terms.
West Virginia state law requires all registered motor vehicle owners to comply with certain minimum coverage levels, but consumers are able to purchase higher coverage levels that West Virginian insurers are required to offer.
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