Personal Injury

3 Types of Commonly Overlooked Insurance Coverage

Most people know they are entitled to payment for damages from the person who caused the car accident.  If that person has proper insurance coverage, then payment will typically be made by their insurance company, assuming the accident is clearly their fault and there is no disagreement on damages (there is almost always disagreement on damages).

On the other hand, most people are not aware there are other insurance policies that often times will provide coverage (money) for damages suffered from a car accident.  Three policies that are commonly overlooked are:

1) Medical Payment Coverage or “Medpay”— medpay coverage is not required by law; however many people pay for it as part of their premium and do not realize it.  Medpay coverage is money that is available through your own auto insurance carrier for payment of medical bills if you are injured in an accident.  This is money YOUR insurance company will pay toward medical bills.  It depends on the situation; however often times this money must be paid back out of any settlement you reach with the individual who caused the accident.

2) Uninsured Motorist Coverage—uninsured motorist coverage is money that is available to you by your own insurance company if you are injured in an auto accident by a person without insurance.  In Nebraska, the minimum amount of uninsured motorist coverage someone will have is $25,000.00.  Again, this means if you suffer injury from a car accident, and the person who caused the accident is uninsured, you will have at least $25,000.00 in coverage available to you from YOUR insurance company.

3) Underinsured Motorist Coverage—underinsured motorist coverage is similar to uninsured motorist coverage, but as the name implies, underinsured motorist coverage applies when you are injured by a person who does have car insurance; however, that person’s insurance is not enough to compensate you fully for your injuries.  In example, if you are severely injured by an individual who only has $25,000.00 in liability insurance coverage, once you have been offered all $25,000.00, you can then seek additional compensation from YOUR own insurance company.  Same as uninsured motorist coverage, if you have auto insurance, you will have at least $25,000.00 in underinsured motorist coverage available to you.

The above is a brief description of potential auto insurance coverage that may be available to you if you are injured in a car accident.  In practice these issues can be much more complicated.  Be careful when handling an injury claim, and if you have been seriously injured in a car accident, it is always best to at least speak with an accident injury lawyer before making any decisions regarding settlement.

Chandler | Conway

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