Car Accidents and Insurance Law

Car driving is a necessity for many in the United States. All states require drivers to carry a minimum level of auto insurance. If caught driving without car insurance, you can face serious fines, traffic tickets, driver's license suspension, and jail time. If you're in an auto accident, you can be personally liable for medical bills and property damage for any other driver involved.

Your auto insurance policy is your security in case of a motor vehicle accident. Car insurance is essential, regardless of whether you're at fault, an innocent party, or a hit-and-run victim. But how does your insurance policy help if you are in an accident?

State Car Insurance Laws: At a Glance

State automobile insurance laws generally set minimums for financial responsibility. Drivers usually need liability coverage for bodily injury (per person and incident) and property damage. Some states also require a minimum coverage amount for uninsured and underinsured motorists. These limits range from $20,000 to $100,000 per accident for injury liability. Coverage is generally less per accident for property damage liability.

For instance, Florida requires $10,000 in property damage liability per accident and $10,000 in personal injury liability coverage. Illinois requires at least $25,000 in bodily injury liability per person and $20,000 in property damage liability coverage. Illinois also requires $50,000 in uninsured motorist coverage per accident.

When You Have an Accident

After an auto accident, ensure you and any passengers are safe. Call the police to report the accident; your car insurance company will want a police report. Request medical attention, even if you don't feel injured. Some injuries may not show right away.

Get the other driver's car insurance information, regardless of who is at fault. Ensure you have their insurance carrier's name and policy number.

Contact your auto insurance company as soon as possible. The insurance company will assign you a claims adjuster to investigate the accident. They review your coverage limits and any applicable deductibles. Your adjuster will get the wheels moving so you can recover.

At Fault State or No-Fault?

How your auto insurance works after a car accident depends on whether you're in an at-fault or no-fault state.

If you're in an at-fault state, your insurance adjuster will investigate the accident to determine who is at fault. The auto insurance of the driver at fault will pay for property damages, medical bills, and other accident-related issues covered by the insurance policy.

If you're in a no-fault state, you must carry personal injury protection (PIP) as part of your auto insurance. Your insurance handles paying for your property damage. You will pay your deductible, and your insurance will pay the rest for your repairs and medical bills.

Uninsured Motorist Coverage

If a motorist has inadequate or no insurance coverage, uninsured motorist coverage (UIM) helps fill the gaps. Without it, you may not receive compensation for injuries or vehicle damage following an accident where an uninsured or underinsured driver is at fault. Some states require uninsured motorist coverage, but others offer it as an add-on to basic policies. UIM can reimburse medical expenses, lost wages, passenger injuries, and vehicle damage.

What Does My Car Insurance Policy Cover?

Liability insurance compensates for injuries or vehicle damage to other motorists. State laws set minimum policy limits for liability coverage for bodily injury and property damage to others.

Your insurance will pay up to your policy limits for injuries and property damage when an auto accident happens. Liability insurance policy coverage includes:

• Bodily injury: This is what your insurance company will pay when others suffer injury or death when you're at fault for an accident. This includes payment of medical bills for the injured person or restitution to family members if someone dies.
• Property damage: When you're at fault, the insurer will pay for the property's damage and the cost of repairs.

Other types of auto insurance coverage you can buy include:

• Personal injury protection (PIP): The insurer pays for injury claims and other damages passengers claim.
• Collision coverage: Even if the insured is at fault, the insurer will pay for any vehicle damage, sometimes extending to other property.
• Comprehensive coverage: This covers much more than accidents. It typically includes damage from fire, theft, vandalism, or other such acts. It's often required for new cars financed through a third party.
• Medical payments coverage: While your health insurance can cover your medical needs following an accident, they will usually try to gain reimbursement from your car insurance company.
• Car rental reimbursement: Rental car reimbursement is helpful if your car isn't drivable or needs repairs.

These coverages will impact your insurance rates. Speak to your insurance agent about the advantages of including these coverages.

If you have a loan on your vehicle, you must have guaranteed asset protection (GAP) coverage. GAP insurance helps pay your lender when your car is a total loss after an accident.

Protect Your Rights After an Accident: Talk to An Attorney

Being involved in a traffic accident is scary, especially if you're injured or damage your vehicle. While your insurance will help, they aren't necessarily watching out for your best interest. An attorney specializing in car accidents can review your case and provide valuable legal advice.