Auto Liability Insurance: A Savior In Hit-And-Run Scenarios?

If you're the victim of a hit-and-run, your auto liability insurance may help cover the cost of repairs and injuries. However, this depends on your policy and state. In most cases, the at-fault driver is legally responsible for car accident-related losses, but if you can't track them down, you'll likely have to rely on your own car insurance to help with expenses.

Collision coverage

In the event of a hit-and-run accident, collision coverage can help cover the cost to repair or replace your vehicle after paying your deductible. This is especially relevant if the responsible party cannot be found, as their liability coverage won't be available to cover your damages. Collision coverage is generally optional but may be required when you have a loan or lease on your vehicle.

It's important to note that collision coverage does not include damage to other people's property or vehicles. Additionally, it does not cover medical expenses related to injuries resulting from the accident. Other types of coverage, such as uninsured motorist bodily injury coverage, medical payments coverage, and personal injury protection, may be necessary to provide comprehensive protection in the event of a hit-and-run accident.

Uninsured motorist bodily injury (UMBI)

In the case of a hit-and-run accident, the fleeing driver is typically considered "uninsured" by insurance companies. UMBI coverage can, therefore, be crucial in helping to cover the costs of medical treatments and lost wages resulting from injuries caused by a hit-and-run driver. It can also provide compensation for pain and suffering, which is not typically covered by health insurance plans.

Additionally, UMBI coverage can be beneficial if you are in an accident with an underinsured driver. This means that the at-fault driver does not have sufficient insurance coverage to pay for all the damages or injuries they caused. In such cases, UMBI can help cover the additional medical expenses that exceed the at-fault driver's liability limits.

It is worth noting that UMBI coverage is not mandatory in all states, but it is highly recommended for all drivers. Even in states where it is not required, the risk of being involved in an accident with an uninsured or underinsured driver is significant. According to the Insurance Information Institute, nearly 13% of drivers countrywide do not have auto insurance, and this number can be even higher in certain states.

When considering UMBI coverage, it is important to review the specific requirements and options available in your state. In some states, UMBI coverage may be mandatory, while in others, it may be optional or not offered at all. Additionally, the coverage limits and deductibles can vary depending on your state and insurance provider.

To summarize, UMBI coverage plays a vital role in protecting you and your passengers financially in the event of a hit-and-run or an accident with an uninsured or underinsured driver. By having adequate UMBI coverage, you can ensure that you have the necessary funds to cover medical expenses, lost wages, and other related costs without having to pay out of pocket.

Medical payments (MedPay)

Medical Payments Coverage, or MedPay, is an add-on to an auto insurance policy that covers expenses related to vehicular accidents. It applies to a variety of expenses relating to injuries sustained in an automobile accident, including medical payments such as health insurance deductibles and co-pays, visits to a doctor or hospital, X-rays, surgery, and ambulance fees. MedPay covers you and your passengers, as well as any pedestrians you may injure, and even if you are injured as a pedestrian or a passenger in another vehicle.

MedPay is supplemental to your regular health insurance, and the rules and regulations vary by jurisdiction about which is the primary payer for various treatments and medical expenses. In some states, MedPay is an optional add-on to your car insurance policy, while in others, it's required. In a few states, MedPay cannot be purchased because personal injury protection (PIP) is required instead.

MedPay can help cover costs in a variety of situations, such as if you're hit by a car while crossing the street, or if your spouse is struck by a vehicle while riding their bike. It can also help with the medical bills if one of your passengers experiences back pain following a car accident.

The types of services that MedPay can cover include treatment of injuries, including medical, dental, surgical, and chiropractic care, as well as ambulance fees, X-rays, prostheses, nursing, and even funeral costs following a fatal crash. MedPay can also cover health insurance deductibles or copays. In some cases, MedPay coverage may extend to non-relatives who are passengers in your vehicle at the time of an accident.

However, it's important to note that MedPay has its limitations. It will not cover costs above your policy's limit, wage reimbursement if injuries force you to miss work, childcare costs due to accident injuries, or treatment for injuries to other drivers in a crash. Additionally, MedPay is not designed to cover treatment for injuries or health problems unrelated to a car accident.

Personal injury protection (PIP)

PIP is required in some states and not offered in others. The minimum coverage amount and maximum coverage limits are set by state governments and insurance companies, respectively. For example, in New York, the basic No-Fault coverage limit is $50,000 per person, while in Florida, the minimum PIP coverage is $10,000. PIP coverage limits are usually no more than $25,000.

PIP is an important component of an auto insurance plan, especially in the event of a hit-and-run accident, as it can provide financial protection for medical expenses and other related costs, regardless of whether the at-fault driver is identified. If you are involved in a hit-and-run accident, PIP can help cover your medical expenses and other related costs, such as lost wages and funeral expenses. It is important to review your auto insurance policy to understand your specific coverage and whether PIP is included.

Uninsured motorist property damage (UMPD)

UMPD covers repair costs to fix your car and any extra costs if the other driver doesn’t have enough property damage liability insurance. It can also cover damage to your home or other property. In some states, UMPD is required, while in others it is optional or unavailable. It's important to note that UMPD may not cover hit-and-run accidents in all states, and there may be a requirement to identify the at-fault driver before coverage applies.

The key difference between UMPD and collision coverage is that UMPD only covers damage caused by an uninsured or underinsured driver, whereas collision coverage applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. Collision coverage is generally optional but may be required if you're leasing or financing a vehicle.

Even if you have collision coverage, it's worth considering adding UMPD to your policy. While collision coverage will protect you in a variety of scenarios, UMPD offers additional protection specifically for accidents involving uninsured or underinsured drivers. This can be crucial, as approximately one in eight drivers are uninsured, and many others have insufficient coverage.

Frequently asked questions