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The Different Types of Car Accident Insurance Explained

Over 140 million workers commute to work each day, a number that steadily keeps growing. With more and more cars crowding the roadways, chances are high that you’ll be in a car accident at least once. Crashes aren’t limited to rush hour. People indulge too much at parties or on special holidays and then get behind the wheel, making the roads unsafe.

When you’re in a crash, it’s too late to start thinking about what type of car accident insurance is available. Keep reading to learn about your options before you really need it.

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Liability Insurance

Liability coverage is the portion of your policy that pays for other’s injuries in an auto accident that you cause. Liability coverage has several different aspects to it, including property damage you cause to the other party in an at-fault accident. However, the portions relevant to personal injury claims are bodily injury liability limit per person injured, and bodily injury liability limit per accident.

Most states won’t let you drive a car without liability insurance, which covers the basics in case you’re at fault in a collision. It’s always a good idea to carry coverage beyond what your state requires, just in case. The more protection you provide for yourself and your assets, the better.

Comprehensive Insurance

The majority of drivers- around 77% – purchase both liability and comprehensive insurance. Comprehensive is just like the name suggests – it covers a wide range of incidents. Get comprehensive insurance to cover losses due to bad weather, theft, damage from hitting a large animal, and more.

Underinsured/Uninsured Motorist Protection

Other drivers might not have as much coverage as you do, or any at all. Under-insured or uninsured motorist protection covers damages to your car in case you’re in an accident with someone who has little to no coverage. In South Florida, this type of insurance is critical since the amount of uninsured motorists on the road is so high.

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Collision Coverage

Whereas liability insurance takes care of damage to someone else’s property, collision coverage takes care of your own. When you hit something like a fence or another car that’s covered, a collision takes care of any damages to your vehicle. In some cases, collision coverage will pay out the amount your car is worth if it’s declared totaled.

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Personal Injury Protection (PIP)

One of the shortcomings of auto liability coverage is that it does not cover your own personal injury expenses. For those benefits, you’ll need a policy with personal injury protection (PIP) or medical payments coverage, depending on what the carrier calls it. Also referred to as no-fault car insurance, PIP pays for your medical bills after a car accident, no matter who was at fault.

With PIP, other expenses due to your accident may be covered, depending on your policy details. For example, if you need to pay for childcare, or are rendered unable to work full time after a collision, PIP can cover those expenses.

Some states require PIP coverage to protect motorists from the delay associated with personal injury claims and to reduce the amount of litigation related to car accidents. Generally speaking, PIP may limit your right to sue other parties. Depending on your state’s laws, you might not be able to sue if you make a PIP claim unless serious injury or death occurred, or your damages exceeded a coverage limit.

Clearly, the interaction between auto insurance and personal injury claims can be complicated. Car insurance agents can only tell you so much about the personal injury process. For in-depth questions, you need to talk to a personal injury attorney. For a free consultation about your car accident-related personal injury claim, give us a call at 1-800-ASK-FREE.

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Rental Reimbursement

Speaking of auto insurance coverage types that handle payments due to accidents, consider rental reimbursement insurance. After an accident, depending on the severity of the damage to your vehicle you need a way to get around. Rental reimbursement covers the cost of renting a vehicle while yours is in the shop. Planning for these expenses when you can easily work them into your budget alleviates much of the stress a car accident can cause.

Types of Car Accident Insurance: Which is Right For You?

There are a lot of options to pick from when it comes to types of car accident insurance. Your choice is dependent on what’s required by law in your area and what you think your needs will be. While it might be pricey, your best bet could be purchasing more coverage than is necessary. It’s always better to not need it and have it than to need it and not have it.

Have you been in an accident and aren’t sure what to do next? Contact us as soon as possible and speak with an experienced lawyer today!