Car Wreck Insurance- Understanding a car insurance policy
What kind of insurance do I need before the car wreck happens?
Most people don’t understand automobile insurance policies. As a matter of fact, most attorneys do not either. An automobile insurance policy is a legal contract; a contract between you and your insurance company to protect you in case of a car accident. In addition, the terms of that insurance contract act like a photograph when a car accident occurs. You can’t add anything to that photograph once the accident occurs and the insurance company can’t take anything out of that photograph either. So the most important question is what kind of automobile insurance do you need, to protect you and your family, before the car wreck ever occurs?
How do I read a car insurance policy?
The first step is to understand how your read an automobile insurance policy. Most automobile insurance policies will have what is known as a declarations page. The declarations page is a brief summary of your insurance coverage and it will usually contain terms like “bodily injury” or “uninsured motorist coverage” followed by numbers such as 25,000/50,000 or 100,000/300,000.
In regard to these numbers, the first number, 25,000 for example, represents the maximum that insurance company will pay out to any one person under that coverage. The second number is the maximum that insurance company will pay out to everyone injured in the car wreck no matter how many people might have been injured. So now that we know how to read the declarations page, the question becomes what kind of insurance coverage do we need to protect our families?
What kind of car insurance protects my family?
All insurance policies will have what is known as “bodily injury coverage” or “liability coverage”. This coverage applies when you were at fault for the car wreck. In essence, it means that your insurance company will defend you from the claims presented by the injured person(s) in the car wreck. However, what about protecting your family from a car wreck that was not caused by your or a family member?
For car accidents that were not your fault, your automobile insurance policy should have the following insurance coverage to make sure you and your family are protected: 1) no-fault coverage; 2) uninsured motorist coverage and; 3) underinsured motorist coverage.
What is Kentucky no-fault insurance?
In Kentucky, the no-fault coverage is automatic. It essentially provides everyone in your vehicle with $10,000 of medical expense and lost wage coverage no matter who caused the car accident or how it occurred. So yes, even if you are at fault for the car accident, you can make a claim against your no-fault insurance for your medical bills up to $10,000.
What is Uninsured and Underinsured Motorist Insurance?
Uninsured motorist coverage provides you with the means of presenting your personal injury claim, against your own insurance company, when the at-fault driver was operating his vehicle without insurance in violation of the Kentucky traffic laws. Underinsured motorist coverage provides an extra layer of insurance coverage. Essentially, when the at-fault driver does not have enough insurance coverage to satisfy the full value of your personal injury claim, underinsured motorist coverage allows us to make a claim against your own insurance coverage for additional funds, even though we have recovered all of the insurance coverage on the at-fault driver.
What is the best car insurance to have?
A good car insurance policy should have at least 100,000 per person of uninsured and underinsured motorist coverage.