Car Insurance Rates Addresses Recent MN Work Exclusion Ruling

Sept. 8, 2011 - PRLog -- CarInsuranceRates.com, a free provider of auto insurance premium quotes online, reports that a number of its affiliates have voiced their objections to the Minnesota Supreme Court’s recent ruling prohibiting the work exclusion from car insurance policies. The insurers believe that if the nation follows in Minnesota’s footsteps, drivers will end up paying substantially higher premiums.

“Our affiliate insurers are some of the best providers in the industry, and we choose them for their affordability as much as their coverage quality. Because they pride themselves on the reasonability of their prices, they naturally have concerns about a legal decision that could have a tremendous impact on car insurance rates. The Minnesota ruling essentially forces insurers to pay benefits even when the driver is using the vehicle for work purposes,” explained Nathan Ackerman, spokesman for Car Insurance Rates.

The Minnesota ruling addressed a case where a young man was killed in an accident while using his vehicle to do subcontracting work. Previously, the work exclusion provision of his policy would indemnify his carrier against any liability from auto accidents that occur when the vehicle is used on the job. The court declared the work exclusion invalid, forcing the decedent’s auto insurer to pay benefits to his surviving family members.

“When vehicles are used for both personal and business reasons, the risk of an accident rises because the time spent in the vehicle usually rises as well. Insurers try to mitigate this risk by including work exclusions in policies for personal vehicles. This strategy also keeps premiums lower because insurers don’t have to worry about containing costs from work-related liability claims. The court’s latest ruling now precludes Minnesota insurers from doing so, and many of our insurers believe a future rate hike is inevitable,” said Mr. Ackerman.

For more information, call (888) 426-1093 or visit http://www.carinsurancerates.com.

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