Car Insurance can not only save you but both the parties, depending on the situation. While on the road, car insurance is your protector. It mainly gives liability, underinsured and uninsured, and medical coverage. All of these come as a boon when something unfortunate happens. So, in this article, let’s see the role of car insurance in a car accident?
In this article, we will see the various types of coverages and their role in saving you. So, let’s start!
What Is Liability Car Insurance?
In simple words, if you in your negligence hit somebody with your car, you have to pay them the repairs and medical expenses. Liability insurance helps you do that. Liability insurance helps you pay the other party’s costs. Similarly, if they are at fault, you can ask them for your losses.
But there is a catch. Suppose your loss is worth $150,000. But the other party has insurance worth only $100,000. Then, in this case, you can get only $100,000 from the other person. So, what about the rest?
Well, for the rest, either you have to pay from your pocket, or the underinsured coverage comes to your rescue. The claims adjuster has no obligations to hear you if your demand exceeds the insured limit. Your assessment of what should be the payout does not matter in such cases.
Thus, your uninsured or underinsured coverage helps you in such matters.
What Is Underinsured Car Insurance?
As discussed in the above example, Underinsured Car insurance covers you if the party at fault does not have enough liability coverage.
You buy this coverage for yourself from your insurance company. And if you are a victim of a car accident and need to put up a claim for underinsured car insurance, then you put it to your insurance company.
What Is Uninsured Car Insurance?
Uninsured car insurance protects you when you get involved in an accident, and the second party does not have any insurance at all. In such a case, you will have to pay for your expenses on your own. Also, there is hardly any point in pursuing them, as those who don’t own car insurance don’t have money to pay you either.
This coverage is very similar to underinsured car insurance, in the sense that you buy it for yourself, and when you need it, you put a claim to your insurance company.
Limitations of Underinsured And Uninsured Car Insurance?
Though both are a boon for many, there is a limitation to both car insurance coverages. You can purchase only that much underinsured and uninsured coverage as you have liability coverage. For example, if you have $100,000 worth of liability coverage, you can buy only $100,000 uninsured and underinsured coverage.
How To Know If The Other Driver Is Insured?
Well, this is the tricky part. Let’s understand this step by step:
Step 1: Step 1 is obviously to call the police. Now the police will see to the matter. They will demand the car registration, driver’s license, and insurance information from both/all the drivers. In many states, the law requires to mention the the insurer on the car’s registration.
But now, what happens is that the police do not respond or are late in reaching the spot. This situation takes us to the next step.
Step 2: Now, you are on your own. What you can do in this situation is to ask the driver to produce that information. You can try to ask the driver their insurer or the insurance card or the car’s registration. Whatever you feel fits the situation.
But now, the driver can always refuse to produce the information. In such a situation, follow the next step.
Step 3: The last resort you are left with is to note the driver’s license number and the car’s license plate. Now, you can report these to the police and let the police do the digging.
Step 4: The last step is a small silver lining for you. Insurance companies in some states have a database of the insurers and drivers. So, you can just report the accident to your insurer and hope that an agent will call you up in a few days.
How To Claim Your Car Insurance?
So, now that we have seen the role of car insurance in a car accident. The article cannot be complete without a step-by-step guide on how to claim car insurance.
Step 1: The first step is definitely to check yourself. Check how injured you are. Don’t move if you are seriously injured and call or ask someone to call 911.
Step 2: If you are somewhat OK, check if your co-passengers are OK. If they are not, call for help.
Step 3: If all is OK. Move to the sidewalk or the side of the road. You and your car can be a hazard to the rest of them on the road. But if your vehicle is not safe to drive, leave it there are get yourself to safety.
Step 4: Call the police. However big or small the accident is, calling the police is mandatory by law in some states. The police fill an accident report, and you may anyway need it while filing the claim. If the police can’t come, you must go to the nearest police station and get a report filled.
Step 5: Also, turn the engine off and the hazard lights on. This will help others on the road to slow down.
Step 6: Once you make sure that no one is injured, make sure to exchange information from the other driver. III recommends that please do not discuss the fault from the other driver. The claims adjuster will look into it and arrive at a decision.
Step 7: Ensure the documentation is proper. Note the officer’s name and badge number. Also, ask them where you can get a copy of the report. Then take pictures of the scene and the damage. Lastly, take the name and addresses of the witnesses involved and the other party.
Step 8: Notify your insurance agent right from your accident scene. This way, they can tell you whatever they will need to process the claim and secure from further worries.
Car insurance can sort out all your expenses once an accident occurs. But it would help if you were prompt in filing car insurance. The more you delay the filing of the insurance claim, the more difficult it gets for everybody. Thus, we would advise you to call an agent right at the accident spot.
So, this was all in our guide about the role of car insurance in a car accident. We hope you liked the article and that it was informative. But if you have any doubts, then please drop them below in the comments section. We will be glad to answer.