If someone borrows my car and crashes it, does my insurance apply, or insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits. If a child goes to college with mom or dad’s car, are they covered under Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary is on finance, and its value is now less than the amount you owe, then yes you need gap insurance.
Like a healthy body, a healthy car insurance policy consists of a number of moving parts working in harmony. We'll examine a car accident scenario to explain how the individual parts of a policy, from coverages to deductibles to limits, work together to settle a claim and protect your finances. Car accidents happen — that's what insurance is for. To give you an idea of how your coverage operates when you need it most, let's say you give your insurer the following info when filing a claim. "A deer jumped in front of me during a yellow light.
Then I slid into the median, where my car struck a lamppost. Once the dust settled, I checked on everyone: The family in the car — a man, woman, and their 2 kids — seemed OK but I couldn't be sure. They decided to play it safe and headed to the hospital. For my part, my neck was throbbing something fierce.
Let's take a look at how a sample policy could work. Your bodily injury (BI) liability coverage or the other driver's personal injury protection (PIP) coverage Since you (and not the deer, unfortunately) were found at-fault in the accident's police report, you may be held liable for third-party medical-related expenses after the crash. In most states, BI is a required coverage. Your insurer would likely pay up to the chosen per-incident limit in this case.
Medical payments coverage can work in conjunction with or in place of your health insurance to help cover the costs of your post-accident medical care. In no-fault states, your personal injury protection could kick in to cover your post-accident medical expenses. And in Pennsylvania, your pain in the neck could be covered by As the other half of the liability coverage package, property damage helps cover other cars' repairs as well as any other property property (up to your policy's limit) when you're at fault in an accident. While liability coverage aids others, collision can help pay to repair or replace your own car in a scenario like this one.
Collision coverage is generally optional unless required by a loan or leasing company. When you have this optional coverage on your policy, all you need to do is call the number on the back of your ERS card. We can help you get a tow to a nearby repair shop. Adding rental car coverage or CarMatch Rental Coverage™ to your policy can help you pay for a rental car while your car's in the shop. This should give you a general idea of how coverages can help pay for certain aspects of the post-accident process.
It's always worth clarifying that the above scenario is just an example, and your specific circumstances (the crash, fault, your policy's coverages, etc.) can affect how your car insurance works after an accident. Policies, like customers, are unique. To get more in-depth detail about all of your coverage options, including your limits and deductibles, visit our Get a clear understanding of what you'll pay out of pocket before certain coverages kick in.
The subsequent cost of some items submitted for consideration has been a cause for concern over recent years as this has caused an increase in the premium costs, contrary to the general duty of all involved to mitigate the cost of claims. Also, the recent craze of "Cash for crash" has substantially raised the cost of policies. This is where two parties arrange a collision between their vehicles and one driver making excessive claims for damage and non existent injuries to themselves and the passengers that they had arranged to be "in the vehicle" at the time of the collision. Another recent development has seen crashes being caused deliberately by a driver "slamming" on their brakes so that the driver behind impacts them, this is usually carried out at roundabout junctions, when the following driver is looking to the right for oncoming traffic and does not notice that the vehicle in front has suddenly stopped for no reason. The 'staging' of a motor collision on the Public Highway for the purpose of attempting an insurance fraud is considered by the Courts to be organised crime and upon conviction is dealt with as such. Lerner, Michele (20 September 2011). "Auto repair insurance pledges to pay your breakdown bills" .