How car insurance works after accident?
INTRODUCTION:
Car insurance is designed to protect you financially in the event of an how car insurance works after accident. If a tree falls on your vehicle or you’re the victim of a hit-and-run, auto insurance can help pay for repairs to your car and treatment for your injuries. It also provides liability coverage, in case you are at fault for an accident that causes injury or property damage to others.
Understanding how car insurance works after accident can help ensure you have the right coverage in place and avoid surprises if you make an insurance claim.
To avoid paying out of pocket for accident-related expenses
When you’re at fault for a crash that causes bodily injury or property damage, your liability insurance can help cover the medical bills and repair costs of others.
If you’re sued for causing the accident, liability insurance also pays for your legal defense costs.
Without sufficient liability insurance, you could be on the hook for any expenses that exceed your policy limits.
To pay for the injuries of you and your passengers
If you or your passengers suffer injuries after an accident, car insurance can help pay for doctor visits and surgeries. After being in an accident, the last thing you likely want to deal with is a hefty hospital bill.
To pay for your own vehicle damage
From mother nature to road debris, countless hazards can damage your car. While state-mandated liability insurance can pay for repairs to other drivers’ vehicles in the event of an accident, having proper coverage for your own vehicle can help pay for vehicle repairs.
What Does Car Insurance Cover?
An auto insurance policy is usually a combination of several coverage types. While some are usually mandated by law, others are optional. For this reason, auto insurance companies let you customize your policy to fit your needs and budget.
Here are some standard car insurance coverage options and how car insurance works after accident?
Liability insurance
If you’re responsible for an accident, liability insurance covers the cost of medical treatment for injuries and repairs for property damage you cause to others. It can also cover your legal costs such as attorney fees if someone sues you for damages after an accident.
You’ll generally want to buy enough liability insurance to cover what you could lose in a lawsuit. While most states require liability insurance, the exact limit requirements vary by state.
Collision coverage
Collision coverage applies to your own vehicle after a crash. No matter what your car hits—such as another vehicle or object—collision coverage can help pay for the cost of repairs. If your vehicle is totaled, collision coverage pays you the actual cash value of your vehicle, minus any deductible.
Comprehensive coverage
Car damage doesn’t always come from crashes. Damage can also result from theft, vandalism, or mother nature. For example, if a tree falls on your vehicle while it’s parked in your driveway, comprehensive car insurance can pay for repairs. If your vehicle is a total loss, comprehensive would pay you for the value of the vehicle at the time of the incident, minus your deductible.
What Is a Car Insurance Deductible?
A car insurance deductible is the amount deducted from your car insurance claims check. Let’s say you submit a $2,000 damage claim and your deductible is $500. The insurance company will send you a check for $1,500.
Selecting a higher deductible lowers your premium because you’re assuming more of the cost if you submit a claim.
How Is Car Insurance Priced?
Many considerations go into calculating the price you pay for coverage. Here are some typical factors used by insurance companies for calculating the price of car insurance.
FREQUENTLY ASKED QUESTIONS
Q. What happens after I file the claim with my Insurance company?
A. Your insurance company will contact you for detailed information regarding the loss and may take a written or recorded statement. An examination under oath can sometimes be requested. As part of the investigation, other drivers and witnesses may also be contacted. If you have medical payments or an uninsured motorist claim, you must provide documentation of your loss (injuries, medical expenses, lost wages, etc.).
Q. What should I do if the insurance company does not contact me?
A. A claim representative should contact you within a reasonable period of time after you report the loss. However under certain circumstances, the insurance company can take up to 15 days to contact you. If you do not hear from anyone, call your agent or insurance company for assistance. If they are not responsive, or you believe there is an unreasonable delay in settling your claim, contact the Department of Insurance.
Q. How does the insurance company evaluate vehicle damage?
A. A qualified adjuster or appraiser usually inspects the vehicle damage. The adjuster or appraiser then writes an estimate based on the initial inspection. If further damage is found during the repair process, the shop will contact the insurer to get approval for the additional cost of repairs. Keep in mind the insurer may send out an adjuster to re-inspect the additional damages. If the damage is relatively minor, the company may instead ask you to submit competitive repair estimates. Remember, it is your responsibility to sign and authorize the shop to repair your vehicle once you are satisfied with the final estimate and repair facility.