When a car accident happens, one of the first things you may do is review your auto insurance policy. However, upon reviewing your policy, you may confused by terms like “limits,” “bodily injury,” “medical payments,” and “underinsured”?
First, bodily injury liability coverage refers to the coverage you have through your insurance company in the event that you are found liable in a car accident. In sum, this coverage is the amount up to which (i.e., limit) your insurance company will pay out should you be sued by an injured party or parties as a result of an accident.
If you have a car accident lawyer, he/she will explain that this is vital coverage to understand. If you are in a car accident but the fault is that of another driver, then that driver’s bodily injury coverage will apply to you and your injuries. Thus, this driver’s bodily injury coverage is the amount up to which you can sue the at-fault driver’s insurance company.
Second, medical payments coverage refers to the coverage that you have through your insurance company for car accident related medical expenses regardless of fault – that is, whether you caused the accident or you were involved in an accident caused by another driver. This is important coverage to have given the rising cost of medical treatment and also the prevalence of high deductible insurance plans in which the patient shoulders the bulk of medical treatment costs. With medical payments coverage, a Milwaukee WI car accident lawyer can advise you how to use this coverage the most effectively.
Finally, underinsured (UIM) and uninsured (UM) coverage refers to coverage you have through your insurance company for yourself in the event that you are in a car accident due to the fault of another driver, but the other driver has inadequate or no insurance coverage. Even though it is mandatory to have automobile insurance in Wisconsin, any car accident lawyer can give you an example of a client who hit by someone, who unfortunately did not have insurance.
After an accident, dealing with an insurance company may be the last thing on your mind, but call a car accident lawyer to get the right information about insurance coverage. As any car accident lawyer will tell you, you should fully understand the terms of your auto insurance policy before an accident occurs. Only then will you be sure to have the right and adequate amount of coverage
Thanks to our friend and co-contributors from Hickey & Turim, S.C. for their insight into auto insurance policies.