After A Wreck: What Property Will Auto Insurance Replace?

If you've been in a car accident, you're probably wondering what happens next. The first thing to do is to stop and move out of the way of traffic if it's safe to do so. If there are any injuries, call 911 and get medical personnel to the scene. You should also call the police, who will prepare a report that will help determine which driver was at fault. You should then exchange details with the other driver, including names, addresses, phone numbers, license plate numbers, driver's license numbers, and insurance information. You should also take photos of the damage and get the names and contact details of any witnesses. Once you have all this information, you can contact your insurance company to report the accident and start the claims process. Depending on the circumstances, you may be able to claim against the other driver's insurance or your own.

The other driver's insurance company will pay for property damage if they are at fault

If the other driver is at fault for the accident, their insurance company should pay for your car repair, medical bills, and a rental car. If the other driver's insurance company refuses to pay the full amount or pay at all, you can file a claim with your insurance company, which will then try to recover the money from the other driver's insurance company.

You are not legally required to speak with the other driver's insurance company. If you do choose to speak with them, be cautious about what you say and what information you provide. The other driver's insurance company will try to get you to say something that might make it easier for them to pin the fault for the accident on you. They will also try to get you to accept a quick, low settlement before you understand the extent of your injuries or the damage to your vehicle.

If you have any severe injuries, have incurred medical treatments worth more than $2,000, have had to take time off work or school, or there is a dispute over who is at fault, it is best to seek legal advice before speaking with the other driver's insurance company. A lawyer can handle all communications with the other driver's insurance company and protect you from tactics that may undermine your claim.

Your insurance company will pay for damage if you are at fault

If you are at fault for the damage to your vehicle, you have the option to pay for the repairs yourself or make a claim against your own insurance policy's collision coverage. If you choose the latter, your insurance company will pay for the damage, but your premium may increase as a result, costing you more money in the long run.

When you make a claim, the first thing you need to do is report the accident and initiate the car insurance claim process. After that, the insurance company will usually have your car inspected. If the car is drivable, you may be asked to bring it to a drive-through inspection station. If not, an inspector will typically come to wherever the car is located.

The insurer will then provide an estimate of the damages, which may or may not be sufficient to cover the cost of repairs. Although the insurer may recommend a mechanic, you have the right to use your preferred mechanic. Once you have the insurer's estimate, you can ask your preferred mechanic if they will accept it. If they think the estimate is too low, they may agree to call the insurance adjuster to discuss it directly.

It's important to understand your insurance policy before you need to file a claim. Review your policy to determine what is covered and what is excluded. Familiarize yourself with the declaration page, which typically includes information such as the description of the vehicle covered, the name of the person covered, the premium amount, and the deductible. Knowing these details in advance can help you avoid costly mistakes and navigate the claims process more effectively.

Additionally, keep in mind that any insurance company, whether it's your own or the other driver's, is generally only required to pay up to the value of your vehicle at the time of the accident, also known as the "actual cash value." If the repair costs exceed this value, the insurer may declare the vehicle a total loss, pay you the actual cash value, and take possession of the vehicle.

If the other driver is uninsured, your uninsured motorist coverage will pay for repairs

Uninsured motorist coverage is especially useful if you have an expensive vehicle or require extensive repairs, as the other driver's insurance may not be enough to cover the costs. In addition, if you are injured in the accident, your health insurance may not cover all your medical expenses, and you may need to pay out of pocket for long-term care or lost wages. Uninsured motorist coverage can help cover these additional costs, including medical bills for both you and your passengers. It can also provide compensation for pain and suffering and cover the cost of a rental car while your vehicle is being repaired.

In some states, uninsured motorist coverage is mandatory, and it is highly recommended for all drivers, even if it is not required in your state. The reason for this is that nearly 13% of drivers countrywide do not have auto insurance, and this number rises above 20% in some states. Without uninsured motorist coverage, you could be left footing the bill for repairs and medical expenses if you are in an accident with an uninsured driver.

It is important to note that uninsured motorist coverage has a lower deductible than collision coverage, which you would typically use to claim for repairs if the other driver was insured. This means that with uninsured motorist coverage, you will have to pay less out of pocket before your insurance company covers the remaining costs.

Overall, uninsured motorist coverage provides valuable protection and can give you peace of mind in the event of an accident with an uninsured or underinsured driver. It ensures that you are not left financially burdened by repairs, medical bills, and other expenses that may arise following a wreck.

Collision coverage ensures reimbursement for vehicle damage

Collision coverage is an optional insurance coverage that pays to repair or replace your car if you collide with another vehicle or object such as a lamp post or a curb. It also covers damages caused by uninsured or underinsured drivers. If you lease or finance your car, your lender will likely require you to have collision coverage.

If you are at fault for the accident, collision coverage ensures that you will be reimbursed for your vehicle damage. If the other driver is at fault and does not have enough insurance, you can also make a claim against your own collision coverage. However, if the other driver is at fault and has enough insurance coverage, you would not typically make a claim against your own collision coverage.

If you decide to make a claim under your collision coverage, you will need to pay a deductible, which is often between $500 and $2,000. The amount of your deductible will be subtracted from the amount that your insurance company pays out to you. For example, if your car repairs cost $5,000 and you have a $1,000 deductible, your insurance company will pay you $4,000.

If you make a claim under your collision coverage, your insurance company may be able to recover your deductible from the other driver's insurance company if the other driver was at fault. However, this is not guaranteed.

It is important to note that collision coverage only pays for damage to your vehicle and does not cover personal injuries or damage to personal property inside your car. Additionally, collision coverage will not pay for car damage from non-traffic events, such as extreme weather or theft.

Comprehensive coverage pays for damage caused by something other than a collision

Comprehensive coverage is an optional coverage that protects your vehicle from damage caused by something other than a collision. It is often referred to as "other than collision" coverage. This includes damage caused by weather events, such as hail, floods, or tornadoes, as well as falling objects, such as tree limbs. Comprehensive coverage also includes theft, vandalism, and accidents involving animals. For example, if you hit a deer while driving, the damage to your car would be covered under comprehensive coverage.

Comprehensive coverage is ideal if you want protection against unforeseen events and peace of mind while driving. It can be added to almost any type of vehicle insurance, including auto, motorcycle, boat, and RV insurance. It is also usually required by lenders if you lease or finance your vehicle.

Unlike some coverages, you don't select a limit for comprehensive coverage. The maximum payout is based on the actual cash value of your vehicle at the time of the accident, minus your selected deductible. This means that comprehensive coverage will not pay more than the current value of your vehicle. If you have an older vehicle, you may want to consider whether you need comprehensive coverage, as it is typically limited to the car's actual cash value.

Comprehensive coverage is particularly useful if you live in an area with a high risk of extreme weather events or car thefts. It can provide financial protection in the event of unexpected damage or loss of your vehicle. However, it is important to note that comprehensive coverage does not cover damage caused by collisions with other vehicles or objects, normal wear and tear, or personal belongings inside your car.

Frequently asked questions