The answer to this question depends on whether or not the insurance company is on the hook to recieve or dish out a payment after an accident.  If you are in an accident without any injuries and it’s the other guys fault, then your insurance company will probably be fine for you. They will expect and pursue the other insurer to make sure all claims are paid and your vehicle is repaired or replaced.

However, if you are injured in that accident, it’s a different animal all together.  Insurance companies will do everything in their power to downplay your injuries and offer well below what you deserve to settle the incident.   They will often make a very prompt offer, well below what is due, in order to dangle some “quick cash” in front of you. Don’t make the mistake of accepting these low ball settlements, even if you are in dire need of cash and medical care.  It’s much better for you, the victim, to understand insurance policies (in general) and quickly hire an experienced law firm to represent you in a court of law.

On the first point of understanding what a traditional insurance policy contains, we’ve included a link to a good article that covers the basics.  It’s better to review this before an accident, and also it’s better for you if you have the proper types and amount of coverage for your personal situation.

See the link below and read “19 Car Insurance Terms You Need to Know”

If you own and operate a vehicle, you are legally required to carry some sort of car insurance (or proof of financial responsibility) in almost every state. While the laws regarding coverage types and limits vary from state to state, you’ll need to at least meet the state minimum coverage requirements no matter where you live. Yet, with so many car insurance companies to choose from, it can be difficult for a new buyer to select the policy that is best suited to their needs.

Of course, navigating the world of car insurance can be a confusing endeavor for those who are unfamiliar with the terminology. The problem is that the true value of your coverage resides in the details. Although the terminology may feel foreign, it pays to familiarize yourself with some of the most basic car insurance definitions so that you can properly compare different auto coverage policies. We’ve created a list of some of the most important terms to understand and watch out for when making your next car insurance purchase.

19 Car Insurance Terms You Need to Know
The Basics

Let’s start with the basics, shall we? Here are a few terms that you definitely need to understand before purchasing any type of insurance product, including auto insurance.

Premium  – This is the fee you pay to the insurance company for the right to be covered by their insurance product. With auto insurance, your premium is often listed as a 6-month cost for coverage. Typically, you can choose to make these payments monthly, quarterly, or in 6-month increments. Many companies will give you a discount if you decide to pay it all upfront.
Deductible – The deductible represents the amount of money you will need to pay out-of-pocket for any damages you incur. You’ll pay your deductible prior to any reimbursement from the insurance company. Typically, you’ll have several tiers of deductibles from which to choose. The higher the deductible, the lower your premium costs will be.
Named Insured/Primary Driver – This is the person (or persons) who are covered to drive the vehicle under the insurance policy. Most of the time, this includes all members of the household who are old enough to drive. “Occasional drivers” are drivers who drive the vehicle occasionally and are also covered under the policy.
Policy Period or Term – This represents the time period for which the insurance policy stays in effect.
Fault and Limits

The main reason you carry auto insurance is for protection against huge out-of-pocket costs due to an accident. However, the amount your insurance company will pay is determined by who is at fault and your liability limits.

At Fault – This definition is pretty straightforward. “At fault” describes the person (or persons) who were at fault for any accident. Typically, the individual found to be at fault (or their insurance company) will pay for the majority of damages to each vehicle.
Liability Limits –  Although you may be covered by car insurance, your policy doesn’t include a blank check. Each policy sets a limit on the amount of money it will pay for damages and injuries. These can vary from policy to policy (and from company to company). Most basic liability coverage is 25/50/25, which means that your insurance company will pay up to $25,000 per injured person, $50,000 per incident, and $25,000 for damaged property. Of course, you can raise your limits, which will also raise your premiums.
Types of Car Insurance Coverage

Not all car insurance policies are created equal. While the terms of insurance vary by company, the terms of coverage may vary within the company, as well. Most car insurance companies provide at least 3 levels of coverage. These are the most common.

Liability Insurance – Liability coverage is automobile insurance that covers property damage and injuries to another party that are result of an accident that was your fault. Essentially, this is required in every state in one form or another. While most states specifically require you to obtain liability insurance, other states require drivers to show “proof of financial responsibility,” effectively making liability insurance required everywhere in the U.S.

Read the rest of the article at the link below

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