If you have been in an auto accident, you have suffered injuries and damages. The other party has also suffered losses. You will probably be wondering who covers those damages and how your insurance will come into play.
The state laws in which the accident takes place and how the accident occurs as well as who is at fault will help determine liability for the crash and whose insurance will pay for which damages.
The state laws regarding insurance coverage requirements vary. Most states do require that drivers have liability coverage if they are operating a vehicle on public roadways. The minimal amount of liability coverage that you are required to maintain can vary though.
Liability insurance is designed to cover damages if you are at-fault for a crash and then liable for the damages that are caused.
However, there are differences in liability coverage. Property damage liability covers the damage to the vehicle. The amount that a state requires you to have could vary. For example, some states require $15,000 in coverage, but others may require $25,000.
You should talk with your insurance agent about this coverage because many vehicles could exceed those coverage amounts if they are considered a total loss.
General liability is the coverage that covers the other damages that could result from an accident, such as medical expenses, lost wages, pain and suffering, mental anguish, permanent scarring and disfigurement, and anything related to your personal injury.
The state may require a minimal of 25/50 coverage, which is a maximum payout of $25,000 per person and up to $50,000 per accident. Medical expenses can add up fast, so you want to make sure you have enough coverage.
If an accident victim’s damages exceed the coverage provided by the at-fault driver’s liability insurance, then he or she can file a claim with their own underinsured/uninsured motorist coverage.
Then, if they have damages that exceed their underinsured coverage protection, then a lawsuit can be filed against the at-fault driver and then a judgment can be obtained against them. State laws dictate how those additional funds can be recovered.
Every day thousands of drivers and passengers are injured on the nation’s roads. To ensure they don’t suffer financially as a result of an accident, car insurance takes away that uncertainty and is there when you need it.
However, there is one thing you need to remember. Car insurance policies last for 12 months and they aren’t automatically renewed. You have to make the move yourself to pay the premiums every year on time.
Some well known insurers, not unlike Nationwide, may offer up to 10 days grace period. This gives you those extra few days to pay what you owe to cover you for the next 12 months.
If you pass that grace period you will likely lose your right to claim if you have an accident. If the accident isn’t your fault you will need to contact a personal injury attorney who will work on your behalf to obtain personal injury compensation from the at fault driver’s insurer.
What’s a Grace Period?
An insurance grace period is a specified amount of time allowed to make the next payment after the premium’s date has expired. The grace period is typically 10 days depending on the state the policy holder is still covered.
If you have a Nationwide insurance policy, or most any other insurance policy, you will find the grace period on the insurance policy. You will need to ensure your policy has been renewed by the time the grace period has expired.
How Does a Crash Affect Your Auto Insurance?
Because an insurance policy can be an expensive part of a car driver’s annual budget, many drivers don’t tell their insurer of an accident, even if their car and themselves are injured in an accident. They fear that their premiums may rise the next year.
This isn’t always the case and typically rests on the specific insurance company. There are a number of factors insurers take into consideration when increasing the premium of a policy holder’s insurance such as:
- the seriousness of injuries and vehicle damage in an accident;
- whether the policy holder caused the accident and if he or she didn’t the premium should remain the same. but in a no-fault state both insurance companies are expected to share the costs in an accident so there is a higher chance of the premium rising;
- being a loyal customer with a history of safe driving may see the premium staying the same if an unexpected accident takes place;
- some insurers provide accident forgiveness as a way of rewarding good drivers so if they have an accident for the first time a premium increase is unlikely to take place immediately.
Who Pays The Damages?
If you have been involved in an auto accident, you will want to know who pays the damages. The damages should be covered by the at-fault driver’s auto insurance company. But there are situations in which the at-fault driver may not have enough coverage to take care of your damages.
In those cases, you will need to file a claim with your own insurance company to take care of the difference.
Sometimes drivers have no-fault insurance or collision coverage. If the other driver won’t admit that they are at fault, and their insurance won’t accept liability. It could be bad news, and it could leave you wondering how to cover your damages.
If you file a claim with your no-fault insurance or the collision coverage, it should cover the costs associated with your vehicle damage regardless of who is to blame.
So, if you have collision coverage and you are at fault for the crash, your car damages should be covered. Your liability coverage would take care of the costs associated with the damages and injuries of the other driver or parties involved.
Anytime you are involved in an accident, you should stay on the scene of the crash and call the police. You will need to make sure an accident report is filled out.
The accident report will serve as the foundation for your car crash injury claim. You should maintain through documentation and other supporting evidence, such as medical bills, medical records, damage repair estimates, tow bills, rental car receipts, and witness statements. You should get photos of the accident scene and of the damages caused by the crash.
Maintain a file of all the supporting evidence and documentation so you can make sure that you can prove what losses you suffered because of the auto accident in question. Medical bills, medical records, photos, proof of missed work and lost wages, the accident report, and witness statements are a necessity for your claim.
You May Need an Accident Lawyer
If you have been involved in an auto accident, you have suffered damages. You should consult with a personal injury attorney who handles auto accident injury cases in your area. Your lawyer will investigate the accident and determine what happened. Often, accident injury attorneys could discover things that went overlooked or unnoticed during the initial investigation.
When you hire a lawyer, you will not have to pay anything upfront. Instead your lawyer will work on a contingency basis, which means that your attorney will not be compensated until you received payment for your damages.
If you are involved in a vehicle accident and it wasn’t your fault you will need an experienced personal injury attorney to help you file a personal injury claim against the person who caused your accident. Complete the Free Case Evaluation found on this page to talk with a personal injury lawyer.
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*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Nationwide, or any other party, you may not be entitled to any compensation.
