You have been involved in an automobile accident. You and your health are the most important things, and you need to concentrate on that. Now is not the time to figure out you don’t have enough insurance, or that your insurance won’t cover the things you need them to. Many people do not understand the terms utilized by insurance companies or what impact not having a specific type of insurance can mean for you and your family. Below are terms, definitions, and explanations that may assist you in making the correct decisions for you and your family:
Bodily Injury: An injury sustained by a person.
Bodily Injury Liability Coverage: Pays damages for bodily injury or death resulting from an accident for which you are at fault and, in most cases, provides you with a legal defense. This coverage is subject to the terms, limits, and conditions of your policy contract. Bodily Injury Liability Coverage is the portion of the policy that you will make a claim against if another driver injures you.
Claim: An insurance claim is when you request your insurance company to pay you after a loss. If your insurance company validates the claim, payment will be issued.
Declarations page: The page of a policy that shows the names and address of the insurer, the time a policy is in force, the amount of the premium, and the amount of coverage.
Do you know how to read your declarations page? What does it mean if your liability insurance shows 25,000/65,000? This means that if you are in an accident, and the accident is your fault, the victim can make a claim against your insurance policy for maximum recovery of $25,000 per individual, $65,000.00 per accident. For instance, if there were five people injured in the accident, they could not each recover $25,000.00 – even though that is the individual policy limit. Instead, the policy has a cap of $65,000.00. Thus, each individual is limited to that amount of recovery to be distributed between the five of them.
Deductible: The amount of the damage or loss you’re responsible for before your company pays on a claim. Higher deductibles allow insurance companies to offer reduced premiums. Lower deductibles will increase the amount of the premium you will pay.
Uninsured: This is your portion of the policy that covers you if the other person involved in an automobile accident does not have insurance.
Underinsured: Underinsured insurance comes not to play when the person you are involved in an automobile accident
Personal Injury Protection: Personal Injury Protection, also known as PIP coverage or no-fault insurance, covers medical expenses regardless of who’s at fault. It can often include lost wages, too. This coverage could help even if you’re not in your car. Say you’re injured by a vehicle while walking or riding your bike, even riding in someone else’s car — depending on the state, PIP may have you covered up to the limits you choose.
In Utah, the minimum coverage for Personal Injury Protection is $3,000 per person for medical coverage, $1,500 per person for funeral expenses, a $3,000 death benefit, and $250.00 per week for lost wages or 85% of your income. There is also a $20.00 per day reimbursement for household services should you need to seek those.
