You almost can’t turn on the radio or the television without hearing an ad from a car insurance company. They love to brag about how quickly they pay out claims and how they cover even the craziest situations.
Insurance companies spend so much on advertising because they want to drive public opinion about their brands. Otherwise, all you would hear would be complaints from those left with bills after making a covered claim.
After a crash, someone hurt in a wreck or coping with massive property damages will need to file an insurance claim. How much will insurance cover after a collision?
The coverage of the other driver determines your compensation
Liability-based insurance can protect you. If you don’t cause a crash, you don’t have to worry about your premium increasing after a collision. However, you are also dependent on the amount of insurance the other driver decided to carry.
Unfortunately, there are many drivers carrying the mandatory minimum amount of coverage and nothing more. The state requires $25,000 worth of property damage coverage. Drivers will also have a minimum of $25,000 worth of bodily injury liability protection, which doubles if a single collision hurts two or more people.
Insurance adjusters can negotiate settlements that are equal to the maximum coverage for the claim, depending on the losses someone suffers. However, the company will never pay more than the maximum amount of the policy and will try to pay less than that if possible. If your losses exceed the coverage the other driver has, you may have to look into other options for compensation, such as a personal injury lawsuit.
Learning more about car insurance can help you protect yourself after a car crash hurts you or wrecks your vehicle.