You've caused an accident and now you're worried about the cost of repairs and injuries. Will your auto insurance policy pay out in the event of an accident that was your fault? Unfortunately, this isn't a question with a yes or no answer as it varies depending on what type of insurance you have.
Liability Cover for the Third Party
You must have insurance to cover third parties at the bare minimum. Bare minimum auto insurance is liability coverage which will pay out for injury and repair needs of a third party. This could be the driver of another vehicle or a passenger in your vehicle.
Every state has the requirement for liability insurance, but there will be minimum limits that you will need to abide by in your specific state. There are different ways limits are set, whether per accident, per injury, or per property. If you live in a no-fault state, the other driver will need to have their own personal protection insurance to cover their medical costs.
This coverage will not help repair your damage or cover costs of your injuries. You will need to get other types of coverage.
Collision Coverage for Car Repairs
When you want to protect your car against collisions that are your fault, you will need to get collision coverage. This is a popular type of insurance when cars are worth more than the insurance policy and there is a deductible involved, which you will need to pay before your insurance policy pays out.
This will only cover the costs of repairs. It doesn't include injury cost.
Medical Payments Coverage for Your Own Injuries
While there are many accidents where you can walk away, there are others where you will struggle with injuries. When this is the case, you will need to invest in medical payments coverage. This will only cover the costs of your medical payouts, and only up to a certain limit set by your policy provider.
This won't cover out of work costs. This is only necessary in a state where personal injury protection isn't a requirement by law.
It is important to check your current coverage to make sure it is enough in the event of an accident. If you have only chosen the minimum, you will not have enough to cover the costs of repairs to your car or your own medical costs. You will, however, be able to cover damage to the third party. Talk to an agent, like Wyatt Insurance Agency, for more help.