Policyholders are not always clear about all the details in their car insurance policy.
Major feature of present-day policy: fault or no-fault
Most states mandate the driver’s possession of liability insurance. That ensures coverage of property damage of injuries in the vehicle that was hit by the responsible driver. In those states, the driver that has been blamed for the collision must cover the damages that were suffered by the other driver.
Still, certain of the policy’s features could determine the final outcome. The defendant’s insurance company would only pay up to the limit that has been stated on the company’s policy. If that policy were to have a high limit, then the insurer’s representatives might work hard to keep the damages as low as possible.
Some states have a no-fault insurance policy. In those states, the company that has insured the damaged vehicle must pay the bills, for repairs and medical treatment, regardless of who was at fault. That provision holds true, unless the victim has sustained a severe or catastrophic injury. In that case the victim could sue the responsible driver.
Options available to buyers of car insurance
Uninsured motorist option: The vehicle owner that has such an option could place a 1stperson claim with his or her own insurance company, if an uninsured motorist were to collide with that owner’s vehicle.
That personal injury lawyer in Bedford know that claim should ensure payment of the money spent on treating the injuries sustained by the driver and any occupants. It would not cover damage to the vehicle. Still, if the same vehicle owner had purchased comprehensive coverage, then that should cover the cost of any repairs.
Underinsured motorist option: The vehicle owner that has paid for that option has the right to ask his or her insurance company to make up the difference, if, following an accident, the other driver’s insurance has failed to cover all of the option-holder’s damages. Like the comprehensive coverage, the uninsured motorist option has a stated limit.
Insurance companies have created a rule about that same limit. The limit on the underinsured motorist option cannot be greater than the one on the comprehensive coverage. Insurance companies do not want their policyholders to pay a small amount of money for a policy with a low limit, and then supplement that with an underinsured motorist option that has a high limit.
Policyholders do have a chance to supplement either of the options that were described above. That supplement comes in the form of personal injury protection (PIP). That adds to the amount of money that could be coming from the company with the policyholder that had chosen to purchase an uninsured motorist option, or an underinsured motorist option, or both.