Understanding Your Car Insurance Coverage
Automobile insurance policies cover more than just your responsibility for an accident. The usual policy is really a “bundle” of separate insurance coverages that provide important protection for you, your family members and your passengers. Some of these coverages are automatically included in your policy, while others are optional. As a Connecticut personal injury lawyer who has handled many car accident cases, I know how important it is to have sufficient insurance limits. The following is a brief description of the kinds of coverage that an auto insurance policy may cover.
For example, let’s assume your case is worth $400,000.00. and you have uninsured/underinsured coverage of $300,000.00 on your vehicle. If you were to collect the full policy limit of $100,000.00 from the at-fault driver, you would only be able to collect an additional $200,000 from your own policy for a total recovery of $300,000.00. This is because standard underinsured coverage allows your auto insurance company to take a “credit” for the $100,000.00 paid by the at-fault driver’s insurance. With conversion coverage, however, your company does not get to offset the amount paid by the at-fault driver towards its limits of coverage. In the above example, you could collect the full $300,000 from your own underinsured coverage, plus the $100,000.00 from the at-fault driver, for a total of $400,000.00.
Medical payments coverage. This optional coverage and provides insurance for payment of your medical bills if you are in a car accident (regardless of fault). This is an optional coverage that, as a car accident personal injury lawyer in Connecticut, I highly recommend, especially if you do not have major medical insurance or have a high deductible.
Collision coverage covers damage to your car caused by collision with another vehicle or object or by your car turning over. There is almost always a deductible which you must pay if you repair or replace the car.
The contents of this article are taken directly from a Connecticut Insurance Department publication and is for general information only.
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At the Law Offices of John J. LaCava, LLC, we have been helping put lives back together for more than 35 years. If you were injured in a motor vehicle accident, we will review your insurance coverage and advise on the options for you to recover maximum injury compensation.
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