Liability insurance is mandatory in most states to drive legally and register your car. However, there are many drivers who do not follow the law or who drive in states that do not require this kind of auto insurance. Even if you are hit by an uninsured driver, you may be covered by your own insurance, depending on what type of coverage you have on your car.
The best type of coverage for this type of situation is uninsured motorist auto insurance. This kind of policy provides coverage to pay for damages to your car and for bodily injuries when someone who does not have insurance causes an accident. Uninsured motorist coverage falls into two categories – property damage and bodily injury. Property damage refers to damages to your car or other property as a result of the accident. Bodily injury refers to injuries you or your passengers receive as a result of an accident.
In some cases, the person who hits your car may have liability insurance, but the limits on the policy are not high enough to pay for the expenses associated with the accident. If, for example, there are major injuries, many minimum coverage liability policies are entirely inadequate to pay for hospital bills, treatment bills or rehabilitation that may be required. Underinsured motorist coverage pays for amounts that exceed the other driver’s policy. As a result, with this kind of auto insurance coverage, you can know that your property damage or medical bills will be paid even if the other person does not have enough insurance.
Generally, collision auto insurance pays for damages to your car if you cause an accident. It can also pay for repairs to your car if the party responsible for the party is unclear. If you have an accident with someone who does not have liability insurance or you are unsure who actually caused the accident, you may want to file a claim if the damages are significant. It may be that your collision coverage will pay for repairs to your car. Collision car insurance does not pay for medical treatments for injuries received in an auto accident.
Comprehensive car insurance does not pay for damages received if your car is involved in an accident, regardless of who is at fault. Comprehensive only pays for repairs to your car that are not due to accidents, such as natural disasters, theft, fire, flooding or hitting an animal.
Personal injury protection auto insurance is mandatory additional car insurance in over a dozen states. This kind of car insurance is also sometimes called “PIP,” “medical payment insurance” or “no fault insurance.” PIP is used to pay for treatment for injuries sustained in an accident, regardless of who is at fault. No fault insurance pays for a wide range of associated expenses, including hospital bills, doctor fees and rehabilitation services. It is also applied to claims for lost wages due to an accident and legal fees.
There are certainly ways to potentially protect yourself if someone causes an accident and does not have auto insurance or does not have enough insurance. Legally, if a person causes an auto accident, they are financially responsible for paying the expenses associated with property damage and injuries received by that accident. As a final option, you can sue the person for damages in civil court. However, this process often takes years to pursue. A better solution is to purchase uninsured and underinsured motorist car insurance.