The Different Kinds of Insurance Coverage
Click each kind of coverage to learn more about it
The one thing about an accident that almost everyone is unprepared for is the cost of all the damages resulting from the accident. These costs can come about in many different forms; they can come in the form of lost wages, medical bills, damages to your vehicle, and even the services you hire to get your way of life back.
Having the looming shadow of financial instability cast over you is something nobody is ready to deal with, even less so after suffering something as traumatic as a car accident. Ironically, insurance companies do nothing to help make the process easier, only causing more mental anguish by complicating the process by spreading your compensation among different protections.
Getting compensated by the insurance companies requires understanding first where each portion of your compensation comes from because, to get fully paid after an accident, you won’t only be dealing with your insurance but also the insurance of the other party.
That is why it’s crucial to understand the different kinds of coverages and what situations they protect you in, but before we get into that, we need to go over some basics. If it all seems too complicated, a lawyer can help simplify the process; call now for a consultation; otherwise, keep reading to learn more about the different coverages offered.
The Basics of Insurance
An insurance policy is a document that outlines the terms and conditions of your agreement with the insurance company. It details your terms, what you pay to the insurance company every month, represented by the premium, and the maximum amount covered, called a policy limit, for damages that result from certain events, including an accident. The insurance covers the policyholder or person who owns the insurance policy in these events, some types of coverage compensate the policyholder’s damages, and other types of coverage pay for the other party’s damages. After the policyholder pay’s the deductible, they must pay a specified amount before their insurance helps them with the covered costs.
The premium, policy limits, and deductible are specified when you sign the contract outlining your policy; they cannot be changed after you sign these terms. Remember that while your policy has its own set of conditions, those of the other drivers also have separate terms and conditions that outline a crucial portion of your possible compensation.
Since policies differ significantly, a good lawyer will get a copy of both the driver and your insurance policies and examine them thoroughly to determine how to compensate you for your damages. Get a free consultation, and we can review your case now.
Body Injury Coverage
Body Injury or BI pays for the medical costs of people injured in an accident where you were at fault, but it does not cover the policyholder. To get this kind of compensation, you would first need to have been in an accident where you were injured and not found at fault; then, you would file a claim against the other driver’s insurance company.
Now suppose you were found at fault; the driver of the other vehicle has the right to seek compensation from your own insurance company by filing a body injury claim against your insurance provider. Additionally, because you were found responsible, you would have no right to file a body injury claim against the other drivers without disputing liability, which can be difficult.
A BI’s policy limits can be from $10,000.00 up to a million. Most of the time, the holders of those big policies are commercial vehicles used in activities such as trucking and ride-share services. Nonetheless, if you were not at fault and have medical damages, you should seek a lawyer willing to file a body injury claim to ensure you maximize your compensation.
Personal Injury Protection
Personal injury protection or PIP is a kind of coverage that every driver is required to have in the state of Florida. PIP is always $10,000.00 because the state government wanted to “reduce payment delay for injured drivers, as well as limit the utilization of the court system” with these kinds of cases.
You should use your PIP benefits before going after different parts of the policies for compensation for your medical damages, as they can deny you a portion of your payment for not using your PIP first. The reason is somewhat complicated, but if you are interested in the specifics, you can read more about it here.
The primary purpose of PIP is to pay for your medical damages, regardless of who was at fault. This is where the term “no-fault” comes from because regardless of fault, you are entitled to coverage for a small number of medical services even if you were found at fault for the accident.
PIP comes from your insurance provider; everyone has it because it’s required by law in Florida. PIP can also cover part of your lost wages due to injury and household services you had to hire because you could not physically do them.
Uninsured/Underinsured Motorist Protection
Uninsured/underinsured motorists’ coverage assures you get compensated if the other driver does not have enough coverage to cover your losses or if the other driver has no coverage at all. UM comes from your insurance provider; you must do it, which usually entails a higher monthly premium.
There are two kinds of UM: uninsured motorist protection covers you if someone does not have insurance to cover your damages, and underinsured motorist protection foots the bill when the other party’s insurance company is not enough to cover your losses.
The value of UM coverage has to be equal to or greater than your BI coverage, so that means you can have coverage ranging from as low as $10,000.00 up to a million.
Property Damage Protection
PD stands for property damage, and it is the part of the policy that covers injuries that result from an accident. It is similar to BI because it covers damages to the other party but not the policyholder.
PD’s limits range from as low as $5,000 up to $100,000.00. If you had damage due to an accident, you need to make sure the other party has PD; then, you can file a claim covering damages to your property, which means your vehicle and anything in the car when the accident occurred.
Policies Vary Widely
Although it would be ideal to be fully covered after an accident, the type of coverage a policy may have varies. That is why it is best to have someone familiar with insurance policies review each so you can get the maximum compensation you deserve.
Our lawyers have decades of experience with a wide variety of insurance policies, as they have been fighting with the most significant insurers to get the compensation our clients deserve. Call now and get a free consultation.