What Are Six Common Auto Insurance Mistakes?

Posted On November 6, 2017 In Helpful Information

After a car accident, you may assume that your insurance company has your back and will provide the compensation that you or a loved one will need to recover. Unfortunately, this is often not the case because insurance companies are primarily concerned with making a profit. It is a common mistake to blindly rely on insurance providers after a car crash. However, there are other auto insurance mistakes that include:

1. Lacking UM/UIM coverage: Uninsured/underinsured (UM/UIM) coverage can help pay your medical bills and other crash-related expenses after being hit by an uninsured or underinsured motorist. Without this coverage, you may not receive what you need to recover physically and financially from the crash.
2. Neglecting PIP coverage: Personal injury protection (PIP) coverage can help pay for medical and rehabilitation expenses after a crash. It can also help cover funeral costs and some lost income. In Texas, insurers are required to offer PIP coverage to policyholders. However, you can reject PIP coverage in writing. Insurance companies may promise you lower payments if you forgo this coverage. You should always ensure that your policy has PIP coverage.
3. Not knowing who is covered: You should know who is covered by your insurance policy. If you live in a family where multiple people are using the same vehicle, then you should know whether they are considered permissive drivers by your policy. This is just one example of why you should know who is covered.
4. Buying the bare minimum: In Texas, the minimum liability limit for an auto insurance policy is $30,000 for each injured person. You should never buy a policy with the bare minimum in coverage. Catastrophic injuries from car accidents, such as a spinal cord injury, could incur millions of dollars in expenses depending on the severity.
5. Using your vehicle for commercial purposes: Many insurance policies have a clause that prevents you from using your vehicle for commercial purposes. If you are using your vehicle for commercial purposes and get into a wreck, you may not be covered.
6. Choosing Med Pay over PIP Med Pay coverage has certain weaknesses that could end up costing you after an accident. If your policy has Med Pay coverage, then hospital bills would be covered after an accident. However, Med Pay does not cover lost income from your injuries or hospitalization. It is also subject to subrogation, meaning that whatever Med Pay covers could be taken out of your eventual settlement.

Can A Car Accident Attorney Help Me Avoid Auto Insurance Mistakes?

These are mistakes that you could be at risk of making with your own insurance provider. However, there are also mistakes that you could make after a car accident with the at-fault driver’s insurance company. Talking with an insurance adjuster from the at-fault driver’s insurance provider could be a huge mistake. If an adjuster does call you after an accident, they will likely ask for your permission to record the phone call. Whatever you say to that adjuster could be used against you at a later date to reduce compensation from your settlement.

You should hire an attorney after an accident to facilitate communication with insurance adjusters working for your and the at-fault driver’s providers. The attorneys at Mike Love & Associates, LLC can also review the details of your insurance policy and could help protect your interests after a car accident.