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Basic Car Insurance Types to Help You Claim

It’s a good idea after a car accident to review your Car insurance Canada to verify your coverage. You may have been told by your agent what you are entitled to. However, you can verify this yourself. It is a sign that a reliable insurer with a great reputation will be a wise investment.

Each car insurance company offers the basic coverage types. These coverages are required in different states. Some optional coverage types can be a smart buy.

Liability insurance

The most basic coverage available for all vehicles is liability insurance. This insurance is required in the event that you are found guilty of hitting someone, a car, or running over a gnome in a garden. Liability insurance covers victims’ claims for damages like medical expenses, property damage and pain and suffering.

Although most states require minimal liability coverage, the amounts can vary. California car insurance requires that one person injured in an accident receives $15,000 minimum coverage. Florida’s car insurance requirements are lower, at $10,000 for injury coverage for one person in an incident. This coverage could prove inadequate in light of today’s litigious society and medical costs.

For amounts exceeding your auto insurance, you can be sued. A high level of auto insurance can be a good way to protect yourself and your assets if you have savings and assets.

If you are sued for something that is not covered by your policy like a car accident, liability insurance will pay for your legal defense.

An umbrella policy is a type of insurance that covers more than $500,000 in assets.

Collision insurance

Collision insurance can be optional, unless it is required by your car loan or lease. Collision insurance covers damage to your car if you strike an object, such as a pole, or another vehicle. According to the Insurance Information Institute, 75% of auto-insured drivers have collision insurance.

Comprehensive coverage is often included in collision insurance packages. You will need to purchase them both. Comprehensive coverage is optional, unless it’s necessary for a car lease or loan. It includes theft, hail, vandalism, and fire as well as miscellaneous hazards like hitting a deer, or driving through water that has overflowing creeks.

Auto insurance policies that are no-fault

Some states have no-fault auto insurance laws. This means that you don’t need to prove who is at fault to get insurance payments for minor injuries. Instead of filing a lawsuit, each party is paid by their insurer. These claims are covered by personal injury protection.

Personal injury coverage

Personal injury protection (PIP), is often combined with a no fault law. It covers the cost of medical treatment for injuries sustained in a car accident, regardless of fault. However, no-fault laws do not eliminate the possibility of being sued, especially if the accident caused serious injuries or death.

Sandra Watts, an insurance consultant, says that “true no-fault” accidents are rare. “Unless an accident happens in a no fault state, some percentage [of the blame] will be assigned to each party involved. This usually results in one party being predominant at fault.”

Common Reasons Why Auto Claims are Denied

Sometimes, the process of filing auto insurance claims proves to be frustrating. These are the most common reasons for denial of claims:

The accident could have been avoided or prevented

If the insurance company believes the accident could have been avoided, such as allowing an unlicensed driver to operate your vehicle, it may deny the claim.

You haven’t filed a claim in the time allowed

Customers should file claims as soon possible to insurance companies. It’s a good idea to file claims as soon as possible, before the damage is exacerbated or witnesses disappear. States may have set deadlines for filing claims. These could range from one to twenty years.

Refusing to receive medical care

You may not be able to assess the extent of your injuries immediately after an accident. If you delay seeking treatment for injuries, your insurance company might be suspicious. This could lead to an investigation or even a denial.

After an accident, it is important to be able to present the facts. If you aren’t sure what happened, don’t speculate or accept responsibility at the scene. The claims process is not the place to get too chatty. Do not share too much information. It could affect the outcome of your claim.

What to do if your auto claim is denied

Ask for the reason why your auto insurance claim was rejected in writing. It is important to find out the exact reason for the denial and how you can appeal it. You could be wrong or they could be right.

Examine the evidence and submit a letter explaining how it contradicts the insurance company’s decision. You may need legal advice if you are uncomfortable disputing the denial.

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