The Role of Insurance Companies in Car Accident Cases

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If you are involved in a car accident injury claim, your insurance company, along with a car accident attorney, will play a pivotal role in influencing the result of the claim and the settlement. They are critical in determining the affectees’ financial coverage, liability, and compensation.

Insurance companies provide financial safety for the damages caused by unforeseen car collisions. They help mitigate the devastating consequences of car accidents by defending the insured against claims regarding the accident and paying the affected party for their medical expenses and property damage to avoid legal complications. Continue reading this article to learn how to navigate the dynamics of insurance companies and the central elements of your legal process in a car accident case.

Types of Insurance Coverage

Many different types of insurance coverage come into play in different situations. Most car accident cases with one or more injured individuals fall under the following general types of coverages:

1.   Liability Insurance

Every state requires you to submit evidence of liability insurance before allowing you to drive a new vehicle. This type of insurance covers any bills, damages, injuries, or even death of another driver caused by you.

Liability insurance only allows monetary compensation until a specific limit; you must pay for any additional damage costs over this limit directly from your pocket. Liability insurance is further divided into:

  • Bodily Injury Liability (BIL): it includes coverage of the medical expenses of the victim party
  • Property Damage Liability (PDL): this covers any damage to a vehicle or public infrastructure, including fences, mailboxes, and buildings due to the accident.

2.   Collision Coverage

Another type of insurance is collision coverage, which pays for replacing or repairing your car damaged in a car accident. If you are leasing or renting a car, the lender requires you to submit evidence of your collision coverage to ensure vehicle recovery in case of an accident. A deductible is the amount deducted from your insurance claim check. The higher the deductible you choose, the less you will have to pay the insurance rate.

3.   Comprehensive Coverage

Comprehensive coverage is insurance that covers all damages to your car that are not caused by a car accident involving another vehicle. This includes a windshield damaged by hail, windstorms, earthquakes, theft, fire, vandalism, animal contact, or other falling objects. Filing a claim under comprehensive coverage often requires evidence, along with collision coverage by lienholders.

Role of Insurance in Claim Settlement

If you want your insurance company to handle the claim, you must inform them of the accident as soon as possible and provide an accurate account of the incident. They will then assign an insurance adjuster to the case to investigate the claim and determine each driver’s liability percentage.

Their investigation can include assessing any pictures and videos of the site, your vehicle, or the accident, if available. They will interview all the drivers involved and the eyewitnesses to compare the testimonies.They might also refer to the police report, medical records, hospital bills, or even social media accounts to determine the extent of the injuries inflicted.

The insurance company will determine who was at fault based on their investigation.  If it is revealed that the other party is involved, they will contact their insurance company for compensation. If you are found to be responsible, they will offer the victim a certain amount as settlement money based on the severity of damage and fault.The insurance company can write off your car if the repair cost exceeds the vehicle’s worth. The company will then cover the cost of purchasing a new car according to their limits and policies.

Endnote

The settlement by an insurance company involves several steps, including the prompt reporting of the accident followed by a thorough investigation. They will then offer the settlement amount based on the liability and the severity of the damage caused. It is crucial to ensure transparent communication and reporting of the accident to get proper documentation and the smooth progress of the settlement process.