What Does Your Insurance Cover In A Personal Injury Case?

Protect Yourself in Cases of Personal Injury

In the vast majority of accidents, the parties involved have insufficient insurance coverage to pay for damages. While many of us assume this refers to the large number of American consumers who are either uninsured or have minimum-coverage policies, the truth is, some consumers are learning the hard way that when it comes to auto insurance, the terms “full coverage” mean different things to different people.

If you’re concerned about how your own coverage will fare in the event you should become involved in an auto accident, here are a few things you should discuss with your insurance agent.

Check Your Liability Coverage

When you asked your insurer for “full coverage,” your insurer heard that you wanted both collision and liability. This says that if you are at fault in an accident, your insurance will cover damage to your vehicle, as well as the other vehicles involved. To be fully informed, consider the worst case scenario, which is that your vehicle will strike a luxury car and the damage will be so extensive, your insurer will mark it “totaled.” You don’t have to prepare for something as unlikely as hitting a $3 million Lamborghini or a $2.5 million Bugatti Veyron, but a new BMW can range between $50,000-$70,000, with rarer sports cars like Porsches and Ferraris exceeding $100,000.  If your full coverage insurance only offers liability of $10,000, you’re severely shorting yourself.

Bodily Injury

The bodily injury part of your liability coverage takes care of any medical costs associated with injuries sustained in the accident. This is generally a per-person amount, depicted as two numbers separated by a forward slash. For instance, 50/100 bodily injury coverage means your insurer will pay $50,000 per person injured, with a limit of $100,000 for the total incident.

The danger in not having enough bodily injury coverage is that you may find yourself a party in a lawsuit. The more assets you own, the more important it is to ensure you’re protected against a potential lawsuit.

Extras

Does your auto insurance cover you if you rent a car? If your car is under repair for weeks after an accident, will a rental car be covered? These small extras make a big difference long-term. You may find adding options like these provides a minimal increase in your monthly premiums.

It’s important to make sure you have the auto insurance necessary to protect yourself against potential liability. Think ahead to the possible consequences of an accident and be sure you won’t regret

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