If you’re involved in a car accident, understanding your auto insurance coverage is key. It can help cover medical bills, lost wages, and car repair costs. Good Guys Injury Law helps clients make sure they get the full benefits from their auto insurance policy. Getting through insurance claims can be tricky, especially after an accident. Know which types of coverage apply to your situation.
Understanding what your insurance provider offers can save you time and money. This knowledge also helps you understand how insurance companies calculate payouts for claims. Whether you have collision coverage, uninsured motorist coverage, or other policies, knowing what they cover is important for getting your medical expenses and repairs paid quickly.
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Types of Car Insurance Coverage and What They Cover
There are several types of car insurance coverage, each serving a different purpose. Knowing what each type covers can help you make the right decisions after a car accident.
Here’s a breakdown of the most common types of coverage:
Liability Insurance (Mandatory in Most States)
Liability insurance is required in most states. It helps cover the costs of damages or injuries you cause to others in an accident. If you’re found at fault, this coverage will pay for the other driver’s medical expenses and car repairs up to your policy’s coverage limits.
Liability insurance typically includes two parts: bodily injury liability and property damage liability. Bodily injury liability helps cover the other driver’s medical bills and lost wages. Property damage liability helps pay for repairs to the other person’s car or property. This coverage is important because, without it, you could be personally responsible for these costs.
Collision Coverage
Collision coverage helps pay for damages to your car when you’re in an auto accident. If you’re at fault, this coverage will pay for the repair or replacement of your car. The amount you receive is typically based on the actual cash value of your car, which accounts for depreciation.
Collision insurance is important for protecting your vehicle, especially if it is new or expensive. It can cover car repairs or even the full replacement cost if your car is totaled. Keep in mind that collision insurance usually has a deductible, meaning you’ll need to pay a portion of the repair costs out of pocket before your insurance kicks in.
Comprehensive Coverage
Comprehensive coverage helps cover damages to your vehicle caused by things other than a car accident, like theft, vandalism, or natural disasters. This coverage can also help pay for damages caused by hitting an animal, like a deer.
If your car is damaged in a way that’s not your fault, comprehensive coverage can help cover the repair costs. If your car is beyond repair, it will pay the actual cash value of the car minus your deductible. Comprehensive coverage is optional but highly recommended, especially for newer cars or cars with higher value.
Uninsured/Underinsured Motorist Coverage (UM/UIM)
Uninsured/Underinsured Motorist (UM/UIM) coverage is designed to protect you if you’re hit by a driver who has either no insurance or insufficient insurance. If the other driver doesn’t have insurance, or if their coverage isn’t enough to cover your medical expenses and car repairs, your UM/UIM coverage will kick in.
This coverage is vital, as it ensures that you’re not left with high out-of-pocket costs when the other driver’s insurance company can’t provide enough coverage. It’s a good idea to have uninsured motorist coverage to protect yourself from situations where the other driver doesn’t have adequate coverage or no insurance at all.
Medical Payments Coverage (MedPay)
Medical payment coverage (MedPay) helps cover your medical bills after a car accident, regardless of who is at fault. MedPay can pay for things like hospital bills, doctor visits, and even ambulance fees. This coverage is especially helpful for car accidents where you might not have health insurance to cover these costs.
In many cases, MedPay can be used along with your health insurance to cover additional expenses. MedPay is optional in most states but can offer peace of mind if you don’t want to worry about medical expenses piling up after an accident.
Personal Injury Protection (PIP) (Required in No-Fault States)
Personal Injury Protection (PIP) is required in no-fault states and provides coverage for your medical bills, lost wages, and other expenses, regardless of who caused the accident. Unlike traditional insurance, which looks at who is at fault, PIP covers your costs immediately.
It can also cover passengers in your car and pedestrians injured by your vehicle. PIP coverage is usually more comprehensive than MedPay, as it can cover more expenses like lost wages and childcare costs. If you live in a no-fault state, PIP is a vital part of your auto insurance coverage.
Rental Car Coverage
Rental car coverage helps pay for the cost of a rental car while your vehicle is being repaired after a car accident. If your car is damaged in an accident and it’s in the shop for repairs, this coverage ensures you still have access to a car.
Rental car coverage can be added to your policy as an optional feature. It’s helpful for situations where you rely on your car for work or personal errands and need a replacement while your car is being repaired. Be aware that this coverage often has a daily limit or total limit, so check your auto insurance policy for the specifics.
What to Do After an Accident to Use Your Insurance
After an auto accident, act quickly to ensure you use your auto insurance coverage correctly. Here’s what to do:
- Call the police: Make sure the authorities arrive to document the accident and provide a police report. This can be important for making an insurance claim.
- Exchange information: Get the other driver’s insurance company details, their license plate, and personal contact information. You’ll need this to file your claim.
- Take photos: Document the scene, damages, and any visible injuries. Photos can help insurance providers assess the damage and support your claim.
- Notify your insurance company: Contact your insurance agent to report the accident as soon as possible. Provide them with the police report, photos, and other necessary information.
- Seek medical care: Even if you don’t think you’re injured, it’s a good idea to get checked by a doctor. Your auto insurance policy may cover medical bills from the accident.
How Insurance Pays Out After an Accident
After an auto accident, the way your insurance provider pays out depends on who is at fault. The payment process varies based on your auto insurance policy and the insurance company involved.
If You Are At Fault
If you are found at fault for the car accident, your liability insurance will cover the other driver’s medical expenses and property damage. However, it will not cover your own injuries or damages to your car.
If you have collision coverage, it can pay for your car’s repairs or replacement. You may also have to cover medical bills and lost wages from your own pocket if your coverage limits aren’t enough. In some cases, your auto insurance premiums may increase after being at fault in an accident.
If the Other Driver Is At Fault
If the other driver is at fault in the car accident, their insurance company will typically pay for your medical expenses, car repairs, and other costs. If the other driver has insufficient insurance or no coverage at all, your uninsured motorist coverage or underinsured motorist coverage may help cover your costs.
The insurance provider will then negotiate with the other driver’s insurance company to recover the amount. If the other driver’s insurance does not cover the full costs, you may need to take legal action.
If Fault Is Unclear
If the fault is unclear or disputed, your insurance company may conduct an investigation. They’ll review witness statements, police reports, and photos to determine who is responsible for the accident.
If you have personal injury protection (PIP) or medical payments coverage (MedPay), your insurance provider can cover medical expenses while the investigation continues. The prosecutor’s office or court might get involved if liability is not clear.
Will Insurance Cover a Totaled Car?
If your car is totaled in a car accident, your insurance company will cover the cost depending on your type of coverage. When your car is declared a total loss, it means the repair costs exceed the actual cash value (ACV) of the car. This often happens when the damage is extensive, and it’s cheaper to replace the vehicle than to fix it.
If you have collision coverage, the insurance provider will pay for the totaled car based on its actual cash value. This amount takes into account the car’s depreciation. If you owe more than the car’s value, you may be responsible for the difference unless you have gap insurance.
If you only have liability insurance, it won’t cover your own car’s damage, and you’ll be left to handle the replacement costs yourself. Always check your policy to understand how your auto insurance coverage applies in case of a totaled car.
Common Insurance Claim Issues and How to Handle Them
After a car accident, you might run into some issues when filing your insurance claim. Some of the common problems you might face and how to deal with them include:
Claim Denials
Sometimes, insurance companies deny claims even when you believe they should be covered. This could happen for many reasons, like missing paperwork, a misunderstanding about fault, or coverage limits not being met.
If your claim is denied, you should first review the details of your auto insurance policy and the reason for the denial. You may be able to provide exculpatory evidence or documentation to support your claim. If needed, contact a personal injury lawyer or a professional who can help you challenge the decision.
Delayed Insurance Payouts
Insurance payouts can sometimes be delayed, which can be frustrating, especially when you need to cover medical expenses or car repairs. Delayed insurance payouts may be caused by complicated cases, investigations into a fault, or disputes between your insurance provider and the other driver’s insurance company.
Stay in contact with your insurance agent for updates, and make sure you’ve completed all required paperwork. If delays continue, consider escalating the issue within the insurance company or consult a lawyer for help.
Disputes Over Payout Amounts
After an accident, you might not agree with the amount your insurance company offers for repairs or medical expenses. If you feel the payout isn’t fair, you can dispute the claim amount. Start by reviewing your auto insurance policy to check if the payout aligns with your coverage limits.
If you believe the settlement is too low, consider obtaining an independent repair estimate or a second medical opinion. If you can’t reach an agreement, you might need to involve a lawyer to help you fight for a fair payout.
FAQs
What should I do if my insurance company denies my claim?
If your insurance company denies your claim, review your auto insurance policy and the reasons for the denial. If you believe it was wrongfully denied, gather supporting documents, such as witness statements or photos, and resubmit your claim. You may also want to contact a personal injury lawyer for help.
How long does it take for insurance companies to pay out after an accident?
The payout time depends on the complexity of the case and how quickly you provide the relevant documents. Sometimes, insurance payouts can be delayed if there are disputes over fault or if the insurance provider needs more information. Stay in touch with your insurance agent for updates.
What is the difference between collision coverage and comprehensive coverage?
Collision coverage pays for damages to your car after an accident, regardless of who is at fault. Comprehensive coverage, on the other hand, covers damages to your car from non-accident events like theft or natural disasters. Both types of coverage are important for fully protecting your vehicle.
Can I use my uninsured motorist coverage if the other driver has no insurance?
Yes, if the other driver doesn’t have insurance or doesn’t have enough coverage, uninsured/underinsured motorist (UM/UIM) coverage will help cover your medical expenses and vehicle repairs. This coverage is essential in case of an accident with a driver who lacks insurance.
Will my auto insurance premiums go up after a car accident?
Yes, your auto insurance premiums may increase after an accident, especially if you are found at fault. The increase can vary depending on your auto insurance policy and driving history. If you have a drunk driving conviction or repeat accidents, the increase may be higher.
Call Our Utah Personal Injury Lawyer for a Free Case Consultation
If you’ve been involved in a car accident and are facing difficulties with your insurance company, Good Guys Injury Law is here to help. Our experienced personal injury lawyers can help you understand your auto insurance coverage and ensure you get the compensation you deserve. We will work with your insurance provider to resolve any claims issues and help you navigate the insurance claims process.
We also offer free consultations to discuss your case and answer any questions you may have about your insurance claim or personal injury. Contact us and let us help you get back on track and ensure you get the best possible outcome after an accident.
