3 Common Accident Scenarios: Will Your Auto Insurance Cover It?

The whole purpose behind buying auto insurance is to ensure you are covered financially if you are ever involved in an accident. The problem is that too many people choose to purchase auto insurance policies that do not offer quite as much coverage as they think. This can lead to people making the painful discovery that they are not covered at a time when they need that coverage most. You can avoid finding yourself in this same position by taking the time to ask yourself whether or not your auto insurance covers you in each of the following three scenarios. If the answer is no, it is time to meet with your auto insurance agent and make some changes to your policy.

You Are Involved In An Accident Where You Are Found To Be At Fault

Imagine for a moment that you are at fault for causing an accident with another driver or are involved in a single-car accident that results in damage. Does your auto insurance policy cover the cost of repairing your own vehicle in this situation? Unless your policy includes collision coverage, the answer to this question is no. This is because standard liability coverage only covers repairs to the other driver's vehicle while collision coverage is necessary to cover the cost of repairs to your own vehicle. 

Your Vehicle Is Hit By A Driver With No Insurance

Imagine for a moment that your vehicle is hit and damaged by another driver who has no insurance coverage. Does your auto insurance policy provide you with coverage for this situation? Unless your policy includes uninsured motorist coverage, the answer to this question is no. Adding this coverage to your policy will allow you to file a claim against your own policy if the other driver in your accident does not have any insurance coverage. This can help you to avoid the lengthy and often unsatisfying task of seeing damages as part of a civil lawsuit against the other driver. 

The Max Payout On The Other Driver's Insurance Policy Is Not Enough To Cover The Value Of Your Car

Imagine for a moment that another driver hits your vehicle and has an active insurance policy. You file a claim against their insurance and the insurance company readily accepts liability. The only problem is that the maximum payout allowed by the other driver's coverage is less than the actual value of your vehicle. Does your auto insurance provide you with additional coverage in this situation? Unless your insurance policy includes underinsured motorist coverage, the answer to this question is no. Adding this coverage to your policy will help to ensure you are able to recoup all of your losses after an accident even if the other driver does not have adequate coverage. 

For more information about auto insurance, contact a local service.

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