Auto accidents can leave victims facing significant financial burdens, including medical bills, vehicle repairs, and lost wages. Understanding what insurance can cover after an accident is essential for protecting your rights and ensuring you receive the compensation you deserve. 

With varying insurance laws across different states, navigating auto insurance coverage can be challenging – that’s why consulting car accident lawyers after an accident is crucial. Below, Craig Swapp & Associates will break down key aspects of auto accident insurance, state-specific requirements, and the importance of having the right coverage.

Statistics of Auto Insurance Claims

According to the Insurance Information Institute (III), auto insurance claims are a common consequence of vehicle accidents. 

In recent years, especially in 2022:

  • The average bodily injury claim was $26,501.
  • The average property damage claim was $6,551.
  • Fatal accident claims often involve significantly higher payouts due to the severity of damages.
  • Claims related to uninsured or underinsured drivers account for a substantial portion of disputed settlements.

These statistics highlight the financial risks associated with car accidents and the importance of adequate auto insurance coverage.

Types of Auto Insurance Coverage

Understanding the different types of auto insurance coverage can help you make informed decisions about your policy. Each type serves a unique purpose and covers specific aspects of an accident.

Bodily Injury Liability Coverage

This coverage pays for medical expenses, rehabilitation, and legal costs if you are found liable for someone else’s injuries in an accident. It also helps cover long-term care costs and any legal fees associated with lawsuits arising from the accident.

Comprehensive Insurance Coverage

Comprehensive coverage helps pay for damage to your vehicle caused by non-collision events, such as theft, vandalism, natural disasters, or falling objects. It also includes protection against damage caused by wildlife collisions.

Gap Insurance Coverage

Gap insurance covers the difference between the actual cash value of your vehicle and the amount you still owe on your car loan if your car is totaled. This coverage is especially important for new car owners who might owe more on their loan than the car’s market value.

Medical Payments Coverage 

MedPay covers medical expenses for you and your passengers, regardless of who is at fault in the accident. It also provides coverage for ambulance fees, surgeries, and follow-up appointments.

Property Damage Liability Coverage

This coverage pays for damage you cause to another person’s property, including their vehicle, fences, or buildings. It may also cover rental car expenses while repairs are being made.

Personal Injury Protection (PIP)

PIP is similar to MedPay but often includes additional benefits such as lost wages and funeral expenses. In some states, it is mandatory and offers broader coverage, including mental health support for accident-related trauma.

Uninsured/Underinsured Motorist Coverage

If you’re hit by a driver without insurance or insufficient coverage, this type of policy ensures you can still receive compensation for your medical bills and damages. It also covers hit-and-run accidents, providing crucial protection in unpredictable situations.

Auto Insurance Requirements in Each State

Auto insurance requirements are determined at the state level, and understanding these differences is essential for drivers to ensure compliance and adequate protection. Each state sets minimum coverage limits, and failing to meet these requirements can result in fines, license suspension, or financial liability in the event of an accident.

Below are the minimum requirements for some states: 

Utah

  • Bodily Injury Liability: $25,000 per person / $65,000 per accident
  • Property Damage Liability: $15,000 per accident
  • Personal Injury Protection (PIP): $3,000 per person

Idaho

  • Bodily Injury Liability: $25,000 per person / $50,000 per accident
  • Property Damage Liability: $15,000 per accident

Washington

  • Bodily Injury Liability: $25,000 per person / $50,000 per accident
  • Property Damage Liability: $10,000 per accident

Colorado

  • Bodily Injury Liability: $25,000 per person / $50,000 per accident
  • Property Damage Liability: $15,000 per accident

Arizona

  • Bodily Injury Liability: $25,000 per person / $50,000 per accident
  • Property Damage Liability: $15,000 per accident

These minimum requirements are designed to cover damages or injuries you may cause to others in an accident. However, they may not fully cover all expenses, especially in severe accidents. Therefore, many drivers opt for higher coverage limits and additional types of coverage for enhanced protection.

Importance of Having the Right Auto Insurance Coverage

Having adequate automobile insurance coverage is crucial to protect yourself financially after an accident. Without sufficient coverage, you may be left covering significant expenses out of pocket. 

Proper coverage ensures you can:

  • Pay for immediate and ongoing medical bills
  • Repair or replace your vehicle, including covering deductibles
  • Cover lost wages and potential loss of future income
  • Handle legal expenses if lawsuits arise
  • Address long-term disability care costs, including home modifications or medical equipment
  • Secure compensation for emotional and psychological trauma related to the accident

Investing in an adequate auto insurance policy tailored to your needs can prevent long-term financial consequences. Additionally, regularly reviewing and updating your policy can help ensure it aligns with your current financial situation and lifestyle.

Legal Options if Insurance Coverage Is Exhausted

Insurance policies have coverage limits, and once these are reached, victims may face financial shortfalls. When policy limits are exhausted, exploring additional legal avenues becomes essential to recover full compensation.

Filing a Personal Injury Lawsuit

If the at-fault party’s insurance coverage is insufficient, filing a personal injury lawsuit can provide a legal pathway to recover damages. This process may cover medical expenses, lost income, property damage, and non-economic damages such as pain and suffering.

Seeking Compensation from Additional Liable Parties

In some cases, multiple parties may share liability for the accident. For example, vehicle manufacturers, government entities responsible for road maintenance, or other negligent drivers might also bear responsibility. Identifying and pursuing compensation from these additional parties can increase the chances of full financial recovery.

Exploring Underinsured Motorist Coverage

Underinsured motorist (UIM) coverage is an important safeguard in these situations. If the at-fault driver’s insurance policy doesn’t fully cover your damages, UIM coverage from your own insurance policy can help bridge the financial gap.

Pursuing Damages for Emotional Distress

Severe accidents often cause emotional and psychological trauma. Filing a claim for emotional distress can compensate victims for anxiety, depression, or PTSD resulting from the accident.

In complex cases where multiple legal options are viable, consulting experienced car accident lawyers can help determine the most effective strategy for pursuing compensation.

Insurance companies are often focused on minimizing payouts, which can result in denied or undervalued auto claims. When disputes arise, having experienced accident lawyers on your side can make a significant difference. 

At Craig Swapp & Associates, our injury lawyers have extensive experience handling auto accident insurance claims and disputes. If you’re facing difficulties with an insurance claim, we’re here to help. Call us at 800-404-9000 or contact us online to schedule your free consultation.