Not only you need to know how to read the plan, but you also must understand the car accident insurance coverage’s put forward in your auto policy.
Your insurance coverage’s are the promises your insurance company makes to you in exchange of a premium (a payment).
This premium is what ensures coverage for you, the program holder and the insured, in case of an vehicle insurance claim.
Remember car insurance is a business, and a very profitable one. If you really think about it, auto insurance is another form of gambling, just backwards.
When you gamble, you are betting that something good will happen (you will get that lucky number) in order to get a pay out.
With automobile insurance it is just the opposite, you are betting that something bad will happen (a vehicle car crash) in order to get a payout.
My point: automobile insurance firms have the odds against you, and just like casinos they are turning record profits.
insurance firms often increase those profits by paying less than they have to.
They do this by reducing cost in different areas of the automobile claim.
It is not unusual to see an insurance company trying to nickel and dime you (or your body shop, chiropractor, medical doctor, tow truck driver, rental car provider, etc.) on what is rightfully yours.
Therefore, you need to know your coverage’s and car accident insurance terms, and what exactly they mean. These pages will explain the auto insurance coverage’s, terms, and definitions in simple terms.
It is important to note that the objective of all vehicle insurance coverage’s is to indemnify the wronged party. Indemnification means “to put the person back in the position they would be if the accident never happened.” Basically, they have to make you whole again.
Achieving true indemnification is very difficult and sometimes impossible. No one can make the chance event disappear or make a bodily injury go away.
The insurance company will try to put the injured victim as close as possible to that position they were before the car crash by making monetary payments.
Most car insurance coverage’s are targeted or designed to do that. To put the wronged party back on the position they were before the collision.
car accident insurance firms use this concept against you. In other words, they will use it to tell you “the purpose of vehicle insurance is put you back to the same point you were before the accident, not to make you better off.”
They will argue that because of this concept, they can depreciate your damages. They will tell you that your vehicle did not have “new parts.”
You had a used vehicle and therefore they will put you “back on the same position” you were. A used car had used parts.
State legislators have made law to carry certain insurance coverage’s; however, you are only required to carry liability automobile insurance.
When there is an car accident insurance claim against you, your car insurance company covers that person (the claimant).
Some states also require Personal Injury Protection and Medical Payments coverage. However, remember that these coverage’s are the bare minimum coverage’s. Every other coverage is optional.