Helping The Hurt Blog

How Car Insurance Effects Your Car Accident Lawsuit

Written by Helping the Hurt Team | Sep 19, 2018 1:57:25 PM

Throughout the United States, it is illegal for drivers to not have Auto Insurance.

The penalties for not having auto insurance can range from receiving a ticket to having your vehicle's registration revoked to having your license suspended for several months.

No matter what state you live in, the penalty for getting caught driving without auto insurance will also include a hefty fee.

So, if everyone has auto insurance, then how does the insurance coverage effect a potential car accident lawsuit?

This can be a complicated question to answer because there are so many different types of coverage and coverage options that are available to drivers.

Every auto accident case is unique and the type and amount of insurance coverage is a major factor that makes speaking with a personal injury lawyer valuable to accident injury victims.

The main ways that Insurance affects Car Accident Injury cases are as follows:

  • The value or amount of coverage that the drivers involved in the accident are covered for by their policy.
  • Whether the Driver's have Med Pay.
  • Besides coverage amount, what else does each driver's policy limit cover?

Table Of Contents

Value of the Insurance Policy

If you have ever purchased auto insurance, you understand that different policies offer different amounts of coverage.

The greater the amount of coverage offered by the policy, the more expensive the insurance premiums are for the driver.

Besides the insurance premiums being more expensive, the more coverage that is available from a policy, the greater the amount of financial settlement can be awarded to accident victims from a Personal Injury Lawsuit.

Nowadays, most auto insurance policies have fixed limits of coverage.

Drivers will usually purchase a policy from an insurance provider that provides a monetary coverage amount for each different type of coverage purchased.

In a standard policy, the amount of coverage usually does not cover close to the number of damages that can occur in an accident.

That is why people are advised to by further coverages with higher coverage amounts.

One of the common types of coverage that people get is Bodily Injury Liability, with coverage amounts usually either 20/50 or 100/300.

In a 20/50 policy, the 20 represents $20,000.00, which is the amount that is covered for a single person injury, while the 50 represents $50,000.00, which is the total amount that the policy will pay out for injuries sustained in the accident.

The same goes for the 100/300 policy, where $100,000.00 is the max payout for single person injuries, and $300,000.00 is the max total payout for any number of injuries.

It is important that if you are a policyholder, to understand the amount and types of coverage you have purchased.

It is also vital to discuss your policies with your accident attorney so that they can determine how much fair compensation you are owed from the at-fault driver. 

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Does the Policy Include Med Pay?

Med Pay is a common type of coverage that drivers purchase when they buy auto insurance. Although it is not required, it can be a very valuable asset if you are ever involved in a traffic accident.

If you are involved in a motor vehicle accident and are injured, Med Pay can cover your medical expenses that are not covered by your health insurance or cover your bills in cases where the other driver is not insured.

For example, if you are injured in a motor vehicle accident that causes you to have copays for doctors appointments, your med pay coverage would pay for these.

Furthermore, if the other driver's insurance is disputing the auto insurance claim and you have medical bills, med pay can go toward paying those bills until the case is resolved with their auto insurance company.

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What Else Does the Policy Cover?

Within an auto insurance policy, there are many different types of coverages that can be included.

The value of a financial settlement can change depending on the coverage limits the drivers involved in an accident purchased.

  • Liability Coverage - required in most states, this coverage includes vehicle damage and bodily injury coverage, which pays for another person's medical expenses, injuries, and damage to property if you are at fault.
  • Collision Coverage - this coverage helps to pay for property damage and damage done to your vehicle if you are in an accident with another vehicle or a fixed object.
  • Comprehensive Coverage - this type of accident coverage is used to cover losses that occur because of an even besides an accident. The types of events that could be included are theft, vandalism, fire, or animal collisions.
  • Uninsured/Underinsured Motorist Coverage - this type of coverage provides financial protection for you if you are hit by an uninsured driver.
  • Med Pay - this is an optional coverage that covers the cost of medical treatment after an accident if you or anyone else in your vehicle is hurt, however, the amount of coverage available is usually quite small.
  • Personal Injury Protection (PIP) - PIP is similar to Med Pay, but covers more expenses such as lost wages, rehabilitation expenses, funeral costs, medical bills, and replacement services.
  • Gap Coverage - Gap coverage is an optional insurance coverage that provides financial compensation for the amount of money between the actual cash value of the vehicle, and the amount of money still owed to pay off the vehicle.

Depending on the extent of your coverage and which of the above types of coverage levels are included in your policy, the financial settlement amount that you are entitled to will be affected.

Contact Helping the Hurt for a Free Consultation

The best way to understand how your insurance policy will affect your accident claim is to understand the type of coverages and amounts you bought and discuss your policies and the car accident with an experienced personal injury attorney.

Car Accidents can be complicated situations, especially when victims are unsure what type of insurance coverage they have and what type of insurance the at-fault party has. 

If you have been involved in a car accident and need help with the claims process and want to know your legal options, it is best to hire an accident lawyer as soon as possible. 

Dealing with insurance adjusters and trying to file a personal injury claim on your own can be very complex, but with the help of an experienced attorney, you can navigate this legal process with ease. 

At Helping the Hurt, we have an expert team of auto accident lawyers who have many years of experience helping accident victims receive a fair settlement for their losses.

If you want to file a claim for compensation and need help dealing with the auto insurance provider, we have an experienced car accident lawyer who can help you.

Click on the link below and get a free legal consultation with an Auto Accident Attorney in your area today.