Should I Use My Car Insurance Or Health Insurance If I’m Involved In A Car Accident?

Car or vehicle insurance is required in most states. Driving without valid car insurance may be grounds for criminal and administrative sanctions ranging from confiscation of your driver’s license to a fine or imprisonment. Car insurance serves as protection against liability or damage in the event of being involved in a car accident. If you are involved in a car accident and you damage another person’s vehicle or property, the insurance will pay for any liability which may be filed against you. Similarly, damage suffered by your vehicle can be claimed against the insurance policy. Depending on the terms of the policy, injuries arising from car accidents can also be claimed. If you are involved in a car accident and you have both car and health insurance, it is better to use your car insurance.

There are six kinds of coverage in a basic car insurance policy. These are: bodily injury liability, property damage liability, medical payments or personal injury protection, collision, comprehensive, uninsured/underinsured motorists’ coverage, and extras like roadside support.

Health insurance, on the other hand, covers employment related medical conditions. Although it is not required for employers to furnish their employees with adequate health insurance, many have opted to offer it as an incentive for recruitment. Hence, most health insurance policies are taken out by employers for the benefit of their employees. Claims on health insurance are restricted to conditions or ailments listed as employment related. The policy itself provides the list of such illnesses or injuries. Car accidents are generally not claimable or reimbursable under health insurance, unless expressly stated in the policy or the car accident occurred while in the performance of work related duty.

Under car insurance, if you injure and individual or damage their property as a result of a car accident, the policy prescribes a limit to the amount of coverage you have. This is usually printed in a sequence of three numbers, like 20-30-40. This set out the limits which are $20, 000 in bodily injury per individual, $30,000 in bodily injury per accident, and $40,000 in damage to property per accident. As it is a State’s duty to maintain order, it often requires a floor level for liability insurance, whether it is for physical harm or property damage. Costs of personal injury lawsuits and other legal expenses arising from a car accident are also covered by the policy.

The policy is also liable for physical harm caused to others whether or not that person is your passenger, the passenger of the other vehicle or a pedestrian. Damage to property liability includes repair, replacement, or refurbishment of the property you damage as a result of the accident. This is not limited to the damage to vehicles involved in the accident but also to other stationary objects such as fences, posts, or buildings. Moral damages, which are the compensation for pain and suffering experienced by the injured party, may be claimed against the policy, subject to a certain limit. In some cases, unearned income, which is the income lost by an injured individual who cannot work due to the injuries they have sustained in the accident is also claimable against the policy, subject to a particular limit.

In case the financial liability incurred is more than the limit provided in the policy, the excess must be paid from your own pocket. The policy can only pay for the maximum amount provided; all other claims must be paid by you.

Whether you are filing a car accident claim or are having a car accident claim filed against you, it is highly recommended that you consult an auto accident personal injury lawyer in your area in order to learn your rights and learn what actions are best for you to take.

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