When you've been in a car accident, and are about to "make the call" to the insurance company, it helps to have some idea what kind of coverage you have on your car. Almost every policy provides the following coverage or something like it:
- Medical Payments or Personal Injury Protection (PIP). Pays for injuries to occupants of your car, regardless of fault, and sometimes pedestrians. PIP is commonly referred to as "No-fault" in states where it exists.
- Bodily Injury Liability. Pays for Injuries to anyone (except the driver of your car) if your car causes the accident.
- Property Damage Liability. Pays for damage to other cars if you are at fault. This coverage also pays for damage to stationary objects (houses, fences, power poles, etc) if your car damages them.
- Uninsured/Underinsured Motorist. Pays for Injuries to you or passengers in your car if you are not at fault and the responsible person is unknown or does not have enough insurance to pay your claim.
If you chose to add them, you may have these coverages:
- Collision – covers damage to your car from it’s impact with other vehicles or stationary objects
- Comprehensive – covers damage to your car caused by factors other than collision (eg, vandalism, theft, flood, falling objects, etc
- Substitute Transportation – pays for you to rent a car while yours is being fixed or replaced.
Collision and comprehensive coverage typically cover anything that is permanently attached to the vehicle, like spoilers, antennae, fog-lights, etc. Personal items that happen to be in it but which are not part of the car (tools, CDs, toys, etc) are not. Coverage for these items is usually provided by your homeowners or renters insurance. Stereo and other sound equipment, if permanently installed, is generally covered under the auto policy.
If you have an accident while driving someone else’s car and there is insurance on the car, that insurance provides coverage (in most states). If there is no insurance, and you have your own car with insurance, your insurance may step in to cover the car you were driving.
There is usually a limit to how much your policy will pay for injuries and liability. These are called “Policy Limits” and they are shown on your Declarations Page, which is attached to your policy when you buy it. Collision and comprehensive coverage usually pay for the actual cost to repair the car, up to its market value. Substitute Transportation pays up to a fixed amount per day, such as $30, usually for a maximum of 30 days.
Remember that this is a broad outline of what is usually covered. When you speak with the adjuster who is handling your claim, he or she should explain these provisions in detail. You can also contact your agent or check your policy.
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