How Insurance Works

How Insurance Works

Figuring out how insurance works can be a headache if you’ve never been in a wreck. We’ll help you understand your policy and the policy of the at-fault party.

Auto accidents are treated under tort law. The at-fault driver is responsible for medical expenses, lost wages, and other costs caused by the accident. Generally, insurance coverage is very important in determining the at-fault driver’s ability to cover these expenses.

Coverage Minimums?

State laws require drivers to carry minimal levels of insurance before they hit the road. Even so, minimum requirements for liability coverage vary state by state. Let’s take a look at some examples of state minimum coverages:

  • Alabama – 25/50/25
  • Georgia – 25/50/25

For instance, if the person who caused the accident resulting in your injuries carries the minimum in Alabama, your medical bills, lost wages, and other damages related to the accident would be covered up to $25,000. The second number represents the total dollars that would be paid for all bodily injury claims in the accident, in this case, $50,000. The final number of $25,000 is the payment limit for damage done to another person’s property resulting from the accident.

Other Coverages?

Insurance policies may contain a number of optional components. The minimums above effectively cover injuries and property damage for the person (or persons) who are NOT at fault. Therefore, additional coverage is required to pay for the claims of the person who caused the accident. As a result, many drivers add medical payments or uninsured motorists coverage to their policies.

The legal teams at Petro Accident & Injury Attorneys carefully review the insurance policies of everyone involved in an accident. We look into all available avenues for full recovery of damages in your injury case.