Victims of auto accidents can face insurmountable medical bills, property damage, and wage loss. For most victims, the financial recovery process starts with the insurance company. Hence, understanding the role of insurance in auto accident settlements will aid the victim in protecting his/her rights or in receiving appropriate compensation.
How Insurance Affects Your Claim?
Insurance coverage generally dictates how much compensation, if any, will be awarded after an accident. The type of system governing accident settlements may vary from state to state; it may be either “at-fault” or “no-fault”. In an at-fault state, the driver responsible for the accident is accountable for payment of damages through his/her insurance. In contrast, under a no-fault system, each driver must look to his/her own insurance to pay for injuries sustained, irrespective of fault, leaving open the possibility for claims for only serious injuries.
Types of Coverage That Matter
In any settlement, various types of insurance policies will come into play. Liability coverage pays for damage caused by the insured to others, while collision coverage pays to repair damage to your own vehicle. Medical payments or personal injury protection may cover immediate treatment. Your uninsured or underinsured motorist coverage will become significant if the driver who caused the accident does not have enough insurance to cover all your damages.
Negotiating With Insurance Adjusters
Insurance companies are for-profit, and many times they want to minimize payoffs. Since adjusters may challenge the seriousness of your injuries, challenge the medical expenses, or give a quick, low settlement offer, it will help to know these tactics. Supporting the claim with enough documentation of your injuries, expenses, and lost income goes a long way toward ensuring equitable treatment.
When Legal Support Becomes Important
An attorney can make the difference in complex cases or when the damage award exceeds policy limits. A lawyer may communicate with insurers on your behalf, search for alternative avenues of compensation, and pursue litigation when negotiations get stalled.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles, California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. Visit www.teninalaw.com for more information. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.