What Insurance Covers After an Accident

Understanding What Your Car Insurance Covers After an Accident

When you buy car accident insurance, it is usually out of obligation. You know it’s important on the off-chance that you are in an accident, but the odds of you thinking about your policy on a day-to-day basis are slim to none. Once you have an accident, however, that quickly changes. Suddenly, you’re not sure how much of your costs the insurance covers. Liability, collision and gap insurance provide you with different types of coverage.

What Does Liability Cover?

Liability insurance is for the damage that you cause to others. For example, if you were at fault, your insurance has to pay for the damage to the other person’s car or person. Liability may cover bodily injury and property damage.

Personal injury protection coverage will cover your expenses, regardless of your fault. If you have personal injury protection, this is also known as no-fault insurance.

What Does Collision Coverage Pay For?

Collision coverage is optional coverage that doesn’t consider a fault. When you have collision coverage, you have to pay a deductible. If you have a high deductible, you will have lower premiums. When you have this form of coverage, it may cover pothole damage and other accidents.

If you have comprehensive coverage, this will help you in the case of a natural disaster or if your car is stolen or vandalized.

What Is Gap Insurance?

Gap insurance is a necessity when you have a new car. Your car’s value begins to depreciate from the moment that you drive off of the lot. It will depreciate a lot faster than your loan. This means that you most likely owe more than the car is worth.

If you are in an accident and your car is totaled, you may not receive enough money to pay off your loan. You could be saddled with a car loan and no car. This is where gap insurance comes in. Many leasing companies require that you have gap insurance because it protects their loan if you were to get into a car accident.

If you’re unsure about what your insurance will pay or if you’re in dispute with the other driver’s insurance agency, pick up the phone and set up a free consultation with a car accident lawyer, like the attorneys at Tuttle Law, P.A., as soon as possible. He or she can help you determine the settlement you deserve and will fight in your corner to ensure that you receive the appropriate compensation.