doctor z
07-22-2009, 09:51 AM
Unfortunately , most of us have been or will be involved in some type of car accident in our lives . Here are some insurance terms you should be aware of in order to make the incident as financially painless as possible .
1. Subrogation - this clause allows your insurer to recover from you what they have paid for if you successfully collect from the other party . For example , assume you were hit and Carl clearly was at fault . In the course of all of this , your insurer paid you $500 for a motel and use of a rental car . When you finally settle with Carl's insurer for $5,000 , your insurer can and will come back to you to collect their $500 from those proceeds . Therefore , always account for what your insurer may have in the case before you settle .
2. Deductible - this is the amount you pay first if the car is damaged in an accident . If you have a $500 deductible , and it costs $750 to replace a scraped bumper , you pay $500 , the insurance company pays $250 .
3. Medicals - this is usually the last amount listed of the numbers on your coverage sheet . Many used to have only $5,000 on medicals . Be aware that this term covers everyone who had medical expenses in the accident if you were at fault . Given todays medical costs , it seems $50,000 should be your minimum , and that may not be enough .
4. Uninsured coverage - this clause kicks in if the party that hits you had no insurance to pay for the damages . Given the cost of cars and repair work today , that is probably a good thing to have , since you will end up paying for the repair work yourself if the party at fault has no assets or insurance .
5. Assumption of Risk exclusions - your policy may very well exclude coverage if you are involved in any type of racing activity . So if you take your car to the local strip (if one is ever built around here) , and you lose control and slap it sideways into a barrier , your repair costs would not be covered . Make sure you carefully review this type of coverage issue with your carrier if you get involved in any off-road activity of this type .
Different facts can cause a lot of unusual legal and coverage situations . Send me an email or give me a call if I can help .
1. Subrogation - this clause allows your insurer to recover from you what they have paid for if you successfully collect from the other party . For example , assume you were hit and Carl clearly was at fault . In the course of all of this , your insurer paid you $500 for a motel and use of a rental car . When you finally settle with Carl's insurer for $5,000 , your insurer can and will come back to you to collect their $500 from those proceeds . Therefore , always account for what your insurer may have in the case before you settle .
2. Deductible - this is the amount you pay first if the car is damaged in an accident . If you have a $500 deductible , and it costs $750 to replace a scraped bumper , you pay $500 , the insurance company pays $250 .
3. Medicals - this is usually the last amount listed of the numbers on your coverage sheet . Many used to have only $5,000 on medicals . Be aware that this term covers everyone who had medical expenses in the accident if you were at fault . Given todays medical costs , it seems $50,000 should be your minimum , and that may not be enough .
4. Uninsured coverage - this clause kicks in if the party that hits you had no insurance to pay for the damages . Given the cost of cars and repair work today , that is probably a good thing to have , since you will end up paying for the repair work yourself if the party at fault has no assets or insurance .
5. Assumption of Risk exclusions - your policy may very well exclude coverage if you are involved in any type of racing activity . So if you take your car to the local strip (if one is ever built around here) , and you lose control and slap it sideways into a barrier , your repair costs would not be covered . Make sure you carefully review this type of coverage issue with your carrier if you get involved in any off-road activity of this type .
Different facts can cause a lot of unusual legal and coverage situations . Send me an email or give me a call if I can help .