Types of Auto Insurance Coverage

Nearly every state requires its drivers to have some form of auto insurance coverage. However, some drivers may not be aware of the protections offered by their policies. The terminology involved in writing auto insurance policies can be confusing to non-professionals. When drivers are involved in accidents, they may not be aware that they lack sufficient auto insurance coverage to compensate them for the damages. An examination of the policy, along with a basic knowledge of insurance jargon, can help drivers determine if they will be covered in an accident

Auto Insurance Coverage: Payments

Most policy holders are familiar with the payments they need to make to maintain their auto insurance coverage. Insurance carriers call these payments “premiums.” Policy holders can pay their premiums in monthly, quarterly, or semi-annual increments. Some drivers may not know about another set of payments tied to their auto insurance coverage. Standard policies also contain language regarding “deductibles.” The deductible payment is the amount the policy holder must pay out-of-pocket before the policy’s auto insurance coverage begins. Policies with lower premiums often have higher deductibles, and vice versa.

Auto Insurance Coverage: Vehicle Protection

Each policy comes with a different level of auto insurance coverage. A minimum “liability” policy covers damages from an accident that was the policy holder’s fault. This level of auto insurance coverage may not compensate drivers for damages to their own vehicles in an accident. For this type of protection, drivers need a “collision coverage” policy. A “comprehensive coverage” policy covers damages to the vehicle resulting from collisions, fire, theft, vandalism, and weather-related incidents.

Auto Insurance Coverage: Injury Protection

Another vital component of auto insurance coverage is injury protection. A “personal injury protection” policy will compensate anyone injured in an auto accident, including the insured driver, passengers, or pedestrians. Some states offer “medical payments coverage,” which offers limited auto insurance coverage for the driver and anyone else injured in an accident. Policy holders can also purchase “uninsured motorist” or “underinsured motorist” policies for protection against drivers with little to no insurance.

Auto Insurance Coverage: Claims Process

While most drivers depend on their auto insurance coverage to see them through such serious accidents, insurance carriers may be reluctant to pay out legitimate claims. Each time an insurer pays out a claim, that payment represents damage to their profits. Some insurance providers will take steps to deny or underpay claims, regardless of the level of auto insurance coverage the customer has purchased. When these denials occur, the driver may consider consulting with an experienced auto insurance attorney.

Source: DoughRoller

Get Answers For Your Auto Insurance Lawsuit Questions

To find out how we can answer your questions about auto insurance lawsuits, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your auto insurance lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.

NOTE: This blog post is a news story and is not an endorsement of Arguello Law Firm by any party mentioned herein.