What Will My Insurance Cover After A Car Accident?
Many people aren’t aware whether their insurance will provide for them after a car crash. Unfortunately, there’s no simple answer to this question. How much your insurance will cover depends on many factors such as what kind(s) of insurance you have, your deductibles, the extent of your crash, and whether you live in a no-fault or a fault state.
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Below, we’ll go over a few key factors that determine how much your insurance will cover after a crash. You’ll also discover the things you should do after a car crash to ensure you receive full damages.
How Does Car Insurance Work?
Car insurance was designed to help you recover financially in the event that your car is stolen, damaged, and/or you are injured in an accident. Usually you will have to pay a monthly premium for this insurance.
There are three main areas car insurance covers: property, liability, and medical. Property insurance covers damage to your car and expenses for a stolen vehicle. Liability, on the other hand, covers legal expenses for physical and/or property damage to others.
Lastly, medical insurance covers exactly what it sounds like: hospital expenses after a car crash. Medical insurance also sometimes covers lost wages at work and/or funeral expenses if applicable.
The Basics Of Deductibles
Although you’re paying premiums every month for insurance, your insurer won’t start giving you money right after your car crash. First, you’ll have to pay a pre-arranged fee known as a “deductible.”
A deductible refers to the amount you have to pay before the insurance company kicks in. After you pay this deductible, your insurance company should handle the rest of the expenses.
Some states offer what’s known as personal injury protection (PIP), which is designed to cover hospital costs, rehab, and lost wages after a car wreck. Today, a few states like Hawaii, Florida, and New York require citizens to have PIP. These are called no-fault states and we’ll discuss them in more detail below.
In many states such as California, PIP is optional. If you don’t decide to purchase PIP, you will have to use your standard medical and auto insurance after a crash.
Usually you won’t have to pay this deductible right away, especially after a serious crash. Please know the deductibles required on your auto insurance plan and ensure you’ll be able to handle that financial responsibility in the event of a crash.
Who Pays For An Auto Wreck?
Figuring out who pays for what after a car crash can be tricky. The major determining factor is whether you’re in a no-fault or a fault state.
As mentioned above, all states that require a PIP are known as no-fault states. This no-fault system was created to avoid going through costly legal battles of trying to determine blame after a crash.
With a PIP policy, both parties involved in a car crash receive financial assistance from their insurance. The catch is that injured clients cannot file lawsuits unless the injuries reach a certain monetary or verbal threshold.
As you probably already guessed, monetary thresholds have to do with the amount of money you spent after an accident. If your medical fees are above the pre-determined threshold amount, then you can file a lawsuit.
Verbal thresholds have to do with the extent of your injuries after a crash. Usually this applies if you suffer a traumatic injury, disability, or a permanent disfigurement. This could also include funeral expenses for those who were killed in a car crash.
In fault states like California, however, people have the right to sue after a car crash. In those cases, you'd file a claim against the at fault party and their insurer should pay you. If they don't you'd need to sue and it's best to speak to an attorney.
Although if you've been in a car accident with an uninsured driver you hopefully have uninsured motorist coverage. will When assigning fault, California follows the comparative negligence system.
This system assigns a different percentage of fault to each driver depending on the nature of the crash. This means defendants are only responsible for the damages that meet the amount of fault they’ve been charged with.
To better understand California’s comparative negligence system, please read through the state’s Civil Code §1714.
What To Do After A Crash?
Hopefully you’re never involved in a car crash. If you are, however, you should keep these tips in mind to ensure you make it out alive and are able to obtain the damages you deserve.
Safety First
Immediately after a crash, move your car to a safe area away from traffic and put your hazards on. After you’re safely in park, get out of your vehicle if possible and put out any cones or hazards you may have.
You should then check to make sure others involved in this crash are OK. Even if they don’t seem to be seriously injured, it’s important to immediately call 911 for legal purposes. Calling the police will bring a neutral third party to the scene of the crash, which is very helpful in legal proceedings.
Avoid Apologizing And Arguing
When interacting with others involved in this crash, be careful not to say you’re sorry. Although this might seem cold, apologizing for a crash could later be used against you in a court of law. It’s equally important not to lose your cool after a car crash. Simply remain calm and ask if everyone is OK.
Gather The Information You Need
After you’ve ensured everyone is OK, it’s time to exchange insurance and contact information. A few key pieces of info you should get from the other driver include his/her name, phone number, home address, email, insurance carrier, insurance policy number, license plate number, and the make and model of the car.
It’s also a good idea to take down info on the police officer that’s on the scene of your accident. This includes the officer’s name, badge number, and the number for their police office. You should also ask for a copy of the official crash report and your crash report’s number.
If possible, take as many pictures of the crash scene as you can. These will help your insurance company and/or lawyer down the line.
Don’t Be Afraid To Call A Personal Injury Lawyer
Auto insurance is a necessity for drivers in the contemporary world. Just because you have insurance, however, doesn’t mean you can’t file personal injury claims if you feel you’ve been mistreated. Many law firms are experienced handling auto accident cases. Please don’t settle for less than what you deserve; if you feel you are being mistreated by your insurers, then call a personal injury lawyer.
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