Car insurance is important protection for drivers. In case of an accident, it can help you cover expenses, including medical expenses, which can be substantial. If you have recently been in an accident, you may have received a car accident settlement agreement from an insurance company. And those agreements raise some questions!
You may wonder how often auto accident settlements exceed policy limits or whether you can negotiate a better settlement. You may also be interested in whether you can claim more to cover your coverage and additional costs.
Below, we explain the many insurance types and how each helps in the event of a car accident. Then, we walk through the car accident settlement process. So, if you have received a car accident settlement agreement, you will have a better idea of your next steps.
Types of Insurance
Car insurance comes in many forms, and may have more coverage than you realize.
While many drivers only carry the minimum coverage required for their state, you may find that you have coverage in unexpected places. For example, you can get coverage from the at-fault driver. Or, if the at-fault driver is uninsured, your insurance may kick in.
Below we provide a brief description of the many types of insurance. Be aware, though, that insurance works a little differently in each state. So, if you're dealing with a car accident settlement, it's best to speak with an attorney who understands your local insurance laws.
No-fault or personal injury protection
No-fault or personal injury protection (PIP) kicks in before your regular health insurance to cover initial damages to the driver and anyone else in the car, regardless of who caused the accident. It also covers injured pedestrians.
PIP coverage starts at a minimum coverage of $50,000 per person. This can include medical expenses, lost wages and direct costs related to the crash. However, it does not cover property including vehicles involved. And it cannot refer to non-tangible items such as pain or suffering.
Liability insurance
Liability insurance provides compensation from the at-fault motorist for personal injury, death and property damage. It does not compensate the at-fault motorist. Minimum liability coverage varies by state but typically starts at $15,000 per victim and $40,000 per accident.
Uninsured motorist insurance
If you are involved in an accident where an uninsured motorist is at fault, this insurance option can help cover your costs. Some states require you to have it, but usually it's an add-on to your regular insurance package.
Collision coverage
Collision coverage covers the repair or replacement of your vehicle in the event of an accident, regardless of whether you were at fault. This coverage kicks in if you hit another vehicle or a fixed object.
Comprehensive Coverage
Comprehensive coverage covers your vehicle when no one is driving. So, you're prepared if your car gets bumped or a tree branch falls while parking in the parking lot.
Navigate Car Accident Settlements
After an accident in which you are not at fault, one of the first things you should do is contact an attorney A car accident attorney will help you navigate the rest of the process and ensure you receive maximum compensation.
While insurance coverage is helpful, insurance companies will try to pay the lowest amount after a car accident.
The minimum amount can leave you without enough to cover all your medical expenses, lost wages, property damage and lost earning potential. It is also less likely to cover intangibles such as pain and suffering. An attorney can help negotiate a settlement that covers all of these things.
last thought
Insurance is very important in a car accident, and a car accident settlement from an insurance company can go a long way in helping you cover the costs.
Working with an attorney is the best way to get a car accident settlement from an insurance company. They will be able to check your and the other driver's coverage forms, then help you determine the best path to compensation.
