Difference Between Car Insurance Policies

To understand what the difference is between auto insurance policies offered by different companies requires an understanding of a couple of concepts. First, medical payment coverage varies the most. This is coverage which pays for reasonable and necessary medical expenses for injuries caused by any vehicle, anywhere. It covers all occupants in the insured vehicle. It also covers all family members of the insured that live in the household, for injuries caused by any vehicle, anywhere, whether in a vehicle, or even as a pedestrian.

How Medical Payments Provisions Vary

While all other coverages in auto policies work the same way, the medical payments provisions of different policies can vary quite a lot. The first thing is the number of years of coverage. Some companies offer coverage for only one year from the date of the accident. In serious injuries, where surgery could result more than a year after, say due to a deteriorating herniated disc in the back, or where plastic surgery is needed to revise a scar (plastic surgery is usually done more than a year after an accident), this would not help. Other companies offer coverage for 3 years. This is a major benefit. As I said, scars take a year to "mature" and plastic surgeons will not want to do any surgery on scars for more than a year. Also, health insurers will usually decline coverage for plastic surgery to improve one's appearance. So, having the longer period of coverage is important for this reason alone. Then there are other types of injuries, such as major dental injuries that can result from a major collision, or even a minor one if the injured person was a pedestrian and was thrown to the street. Health insurance will never pay for restorative dental work, which can run into tens of thousands of dollars. So, having the medical payments coverage is the only way to get the work that is needed and have it paid for at the time. Suing a defendant who caused the accident might result in a settlement fund down the road, in some cases 2 years or more, but it will not provide the money to get the needed dental work in the months following the accident.

Another way that these medical payments provisions vary is that some are reimbursable while others are not. That means that if a claim is made against an adverse driver that caused the accident, and a settlement is reached which provides money for the injured party, that the medical payments benefits which were used will have to be repaid from the settlement to the car insurance company. Some policies offer medical payments coverage which is not reimbursable. That means that whatever amount is recovered in a settlement can be kept and nothing has to be paid back to the auto insurance company.

The final way in which these policies vary is the available limits of the coverage. Some companies will offer only $5,000, or $10,000 maximum. That is not adequate in the case of necessary dental restoration of many teeth, or major plastic surgery to revise scarring. Other companies will offer as much as $100,000 coverage for medical, which includes dental and even mental health coverage (such as for PTSD or phobic reactions).

The most important benefit of medical payments coverage is that it pays for the needed care when it matters most, i.e. soon after the injury. And, it pays for things that health insurance will not cover. It is best to buy the largest amount of medical payments coverage you can find. Dollar for dollar, it is inexpensive coverage. And rememer, it follows all the family members everywhere they go. If a child is run over while on a trip to Europe, it will pay. When a bus ran out of control and hit a house, injuring my client who was asleep in bed, it paid!

Policy Limits Vary

Another way policies are different is the available limits of coverage. Some companies offer a maximum liability limit of $100,000 per person and $300,000 per accident. Other companies will go as high as $500,000 single limit coverage. This is important to understand, since you want to protect your home and other assets against a catastrophic loss. Your own budget for living expenses is a major concern, but protecting your family assets is a big one. Consider buying the highest limits you can afford.

Protecting yourself and your family from uninsured motorists is another major concern. You should buy as much protection as you can for your family. The way insurance companies work, they will require you to buy the same amount of liability coverage (to protect others) as uninsured motorist coverage.

Additional coverage can be purchased on top of your auto policy, if you buy the highest limit, called an umbrella policy. It can be in multiples of one million dollars. Be sure to ask if it includes coverage over the UM, or uninsured motorist coverage, as most of the time it does not. But carriers will provide that extra protection for an additional premium.

After a car accident, or any accident involving a motor vehicle of any type, it is best to call a lawyer to find out your rights and possibly help you make your claim. It is always free to have a consultation and you can call 24/7. Save our toll-free number for an emergency of this type. You can even remember it: 1-800-97-LAWYER [1-800-975-2993].