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Insurance CoveragesWhat is covered and how it is coveredNot only you need to know how to read the policy, but you also must understand the insurance coverages put forward in your auto policy. Your insurance coverages are the promises your insurance company makes to you in exchange of a premium (a payment). When you gamble, you are betting that something good will happen (you will get that lucky number) in order to get a pay out. My point: insurance companies have the odds against you, and just like casinos they are turning record profits. They do this by reducing cost in different areas of the auto claim. It is not unusual to see an insurance company trying to nickel and dime you (or your body shop, chiropractor, medical doctor, tow truck driver, rental car provider, etc.) on what is rightfully yours. Therefore, you need to know your coverages and insurance terms, and what exactly they mean. These pages will explain the insurance coverages, terms, and definitions in simple terms. It is important to note that the objective of all insurance coverages is to indemnify the wronged party. Indemnification means “to put the person back in the position they would be if the accident never happened.” Basically, they have to make you whole again. Achieving true indemnification is very difficult and sometimes impossible. No one can make the accident disappear or make a bodily injury go away. The insurance company will try to put the injured victim as close as possible to that position they were before the accident by making monetary payments. Insurance companies use this concept against you. In other words, they will use it to tell you "the purpose of insurance is put you back to the same point you were before the accident, not to make you better off.” They will argue that because of this concept, they can depreciate your damages. They will tell you that your car did not have “new parts.” You had a used vehicle and therefore they will put you “back on the same position” you were. A used vehicle had used parts. When there is an insurance claim against you, your insurance company covers that person (the claimant). Some states also require Personal Injury Protection and Medical Payments coverage. However, remember that these coverages are the bare minimum coverages. Every other coverage is optional.
Automobile Liability Insurance or Liability Page 1 Comprehensive Coverage (Protection Against Loss to the Auto) Page 1 Restoration Coverage
Insurance Clauses and TermsYour policy will be filled with legal language that can be confusing. Insurance companies have very big underwriting departments (the people that sit and write these policies) so they can control every term of a claim. I have included a list of the most common clauses and explained how they are used. In addition, there is a list of other terms that are not classified like the ones above, but they are all over your policy. There are some concepts that although they are not in your policy, they will be applied by state law. I will note which ones those are when pertinent. The following list is in alphabetical order (not order of importance or how they appear in your policy).
Actual Cash Value or ACV Duty to Cooperate Clause Mandatory Arbitration Clause
Reservation of Rights Concept
Subrogation of Rights Clause Part I |
Call a Personal Bodily Injury ClaimsMaking a bodily injury claim or personal injury claim can be
frustrating. Insurance adjusters are very much at the defensive when a car
accident yields soft tissue injuries and headaches.
You have certain rights and duties to ensure coverage for your medical bills, pain and suffering, and medication. Learn more at our Bodily Injury Claim Page. Total Loss ProcessThe total loss process can
be very complicated and it can certainly leave you making payments in a car that
you not longer have.
Insurance companies have structured the process in such manner that you cannot (or it's very difficult) to dispute the Fair Market Value of your car. Learn more about the total loss process. | |||
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