Auto Insurance Coverage

Posted on March 19, 2009 by Paula Strand

Understanding Auto Insurance Coverage

Considering how easy it is to buy insurance these days, it isn’t surprising that many people aren’t familiar with what their policies actually cover. Many people apply for and receive insurance online, or over the phone, and when they get their policies they simply place the policy in a filing cabinet without even reading it. And even if they do read it, they have to dig through pages and pages of dense legal jargon that they probably won’t understand.

As a result, many Americans have the wrong idea of what sort of insurance they have, or what sort of accidents or incidents will be covered under their policy. The consequences of this lack of understanding can range from annoying (having to go out of pocket for car repairs) to financially devastating (finding that your insurance will not cover the majority of your medical bills.)

Your best defense against getting one of those uncomfortable surprises is to KNOW rather than ASSUME what sort of coverage your policy provides. To that end, here is a list of the types of coverage that are on most regular auto insurance policies and what they mean.

 

Property Damage Liability: If you get into an accident and it is your fault, this sort of policy handles any damage that you do to someone else’s property. It is important to note that while some policies cover damage done by your car no matter who is driving, others do not, so it’s best to contact your insurance company to determine whether or not you are covered.

Bodily Injury Liability: This is coverage that provides for any injury claims that are made against you in the event of an accident where you are at fault. But this does not mean that the insurance company will cover EVERYTHING. Most policies offer the bare minimum of what the state requirements are, and if the medical bills of the people involved in the accident go beyond that amount, you can be on the hook for the rest. Contact your insurance company to see if you need more coverage than the state minimum.

Uninsured/Underinsured Driver Protection: In Virginia, it is completely legal for people to drive without insurance. All they have to do is pay a fee every year to the DMV, and that allows them to drive on the roads without any coverage. This makes things obviously difficult if you get in get into an accident with an uninsured driver. Many policies offer protection in the event that you get hit by someone who is uninsured, and, even more importantly, they also offer coverage in the event that you get hit by someone who doesn’t have ENOUGH insurance. (Remember those state minimums that we were talking about?) This is yet another reason for you to pencil in some time to call your insurance company to see what sort of coverage that you have.

Collision Insurance: This covers damage to your car, as simple as that seems. You would be surprised how many owners of older cars are surprised to find out that whey they were able to opt for the lowest possible insurance costs, they lost the coverage for their own cars. If you want your car to get fixed in the event that you get into an accident, you should have collision insurance.

Comprehensive Insurance: What happens if your car gets stolen? What happens if a tree falls on it? What happens if it catches on fire, or if someone SETS it on fire? This is where comprehensive coverage comes in.

Personal Injury Protection: Do you know how much a stay in the intensive care ward costs? It varies from state to state, but you can bet that the state minimum insurance levels won’t keep you in there for long. Personal injury protection is extra coverage that could go a long way towards easing the enormous costs of recovery and rehabilitation. A lot of personal injury protection policies also allow for lost wages and, if they are needed, benefits and compensation for the surviving family members.

Insurance needs might vary from person to person, but as attorneys who represent injury victims in the D.C. area, we can tell you that not knowing exactly what sort of insurance coverage you have is a sure way for your insurance company to take advantage of you.

If you aren’t sure what sort of coverage and benefits you are eligible for, the insurance companies aren’t going to go out of their way to let you know. Their usual plan is to offer settlements that are only worth pennies on the dollar for what your actual damages will be, especially if there are medical costs. This is one of the many reasons for you to contact an experienced attorney in the event that you get into an accident.

To learn more about auto accident issues, please read our auto accident page, or watch our auto accident video by Jason Fernandez.

Greenberg and Bederman have been serving the injured of the Washington, D.C. area for decades, and we take pride in helping those who have been injured in car accidents get the compensation that they need and deserve.

If you or a loved one has been injured in a car accident in Maryland, the District or Northern Virginia, contact Greenberg and Bederman for a free legal consultation today.

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