With years of experience under their belt, it’s entirely reasonable to believe that a person will never be involved in a car accident. By extension, a person would then theoretically never need to understand how their car insurance works. There are over five million car accidents on a yearly basis, though, which keeps the insurance industry booming, which goes to show why all drivers need to understand their policies. Learn the basics of car insurance including what to do after an accident so that you handle the situation reasonably.
What is Car Insurance?
For those unfamiliar with the basics of car insurance, it’s worth rehashing what exactly this coverage is. In short, auto insurance is simply a financial safeguard all drivers are required to have in the event of a car accident or other auto incident beyond their control. The insurance company will take care of costs related to repairs, damages, and even some medical expenses. In return, a driver pays a monthly or yearly fee to keep their policy active. Car insurance will not cover general wear and tear or mechanical breakdowns, though, so be aware of this when filing a claim.
The Six Main Types of Car Insurance
Believe it or not, there is not just one type of car insurance offered by companies. There are actually six primary types of car insurance for a driver to consider, with only a couple of them being mandated by states around the country. These six insurance types include:
Auto Liability Coverage
First and foremost, auto liability coverage is the type of auto insurance that is required in the majority of states in the country. This type of policy provides financial coverage for property or personal damage if you are found to be at fault for the accident. The insurance company will pay for a portion or perhaps all of the damages depending on the type of insurance policy you have in place.
Uninsured and Underinsured Motorist Coverage
In the event you are in an accident with another driver who is at fault and is breaking the law and doesn’t have auto insurance, you normally would be on the hook for that driver paying whatever they can afford. With an uninsured or underinsured motorist coverage plan, though, your own insurance company will step in to make up where the other person fell short of providing you with funds.
Comprehensive Coverage
Sometimes, roadways around the world can simply be unpredictable and anything from a freak weather incident to theft can occur. A comprehensive coverage insurance plan aims to cover you financially from unknown situations that could damage your vehicle, with the range of what’s covered being entirely dependent on the scope of your policy.
Collision Coverage
Before reaching out to a car accident attorney regarding your situation, consider the type of accident you were just involved in. For those people who were involved in a single accident collision, such as accidentally driving into an object or barrier on the road, collision coverage from your insurance provider can help. This policy will help pay for damages to your own vehicle and to the property that you hit as well.
Medical Payments Coverage
In the unfortunate event that somebody is injured following a car accident, medical payment coverage will pay the cost of your own and others’ medical expenses to an extent. These expenses can range from visits to the doctor, surgery costs, or other similar items. The scope of what’s covered is naturally dependent upon the terms of your plan.
Personal Injury Protection Coverage
In states where auto liability coverage is not required, known as “no-fault states”, something called personal injury protection coverage is mandatory. This type of insurance kicks in because insurance companies in those states don’t investigate who caused the accident. Rather, each person’s insurance company pays for damages or medical expenses inflicted on the other person due to the crash.
Filing an Insurance Claim After an Accident: What to Know
After finding yourself in an accident and exchanging insurance and contact information with the other driver, most people don’t actually know what to do next or how to file a claim with their insurance company quickly. The following steps can help:
- Call your insurance company and ask to speak to an agent regarding an accident
- Inform the agent, or your specific agent, that a car accident occurred, and you wish to file a claim
- Fill out the claim information including what occurred, an estimated cost of the damages, contact information, and other helpful items
- Submit your insurance claim and go through the adjustor process where the insurance company determines fault and how much will be given in coverage
What to Do When Insurance Isn’t Enough
In some cases, it may be apparent that the insurance coverage you receive doesn’t cover certain injuries or doesn’t offer enough compensation for what occurred. If you believe that the other driver acted with negligence and a disregard for safety, you could file a personal injury lawsuit in order to gain more compensation. Be aware, though, that this filing cannot be for items you’ve already received compensation for. To prove a personal injury lawsuit will require the help of a personal injury attorney, so don’t hesitate to reach out if you believe your case qualifies for a lawsuit.
“In the aftermath of an accident, it’s crucial to understand the limitations of your car insurance. As a vehicular homicide lawyer, I’ve seen too many cases where victims didn’t receive the full compensation they deserved. Don’t settle for less, seek legal guidance.” – Silver Law Firm
Protect yourself on the road today
Staying safe on the road is about more than being reactive following an accident. To truly stay safe, a driver needs to prevent a car accident from happening in the first place. The best way to go about this is to simply be vigilant and watchful of everything on the road while also being defensive. Don’t tailgate other drivers on the road and do your best to avoid seeing what’s going on if another driver is acting erratically. By following these simple rules of thumb, you can stay hopeful that you will never need to engage your insurance company due to being involved in an accident on the road.
