The standard personal-auto policy offers uninsuredmotorists (UM) coverage to insureds; of course, there areexclusions that limit the scope of the coverage.

One of the more troublesome exclusions is one that states theinsurer will not provide UM coverage for bodily injury sustained“by an insured while occupying, or when struck by, any motorvehicle owned by that insured which is not insured for thiscoverage under this policy.”

This exclusion—better known as the “owned-but-not-insured”exclusion—seems straightforward enough. If an insured is driving tothe store in his 2012 Chevy and is hit by an uninsured motorist,then that insured cannot claim UM coverage for his bodily injuriesunder his auto policy if he has not purchased that particularcoverage for the 2012 Chevy. However, as with most insurance policylanguage, the owned-but-not-insured exclusion is subject tojudicial interpretation which can render the exclusion void anduseless.

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