Applicable Coverages

Liability in Car Accident Case Claims

Liability coverage pays for bodily injury and property damage for which any covered individual becomes legally responsible. A personal automobile policy covers the driver or any family member while using any automobile or trailer, and any person using their covered automobile with their permission.

In North Carolina, the minimum amount of Property Damage coverage on a liability policy is $25,000. This can be a real problem for newer vehicles or if multiple vehicles are involved in your car accident because, unlike bodily injury liability, the total liability coverage available is $25,000 - not per vehicle.

Collision

Collision is defined as physical damage to a covered vehicle caused by an impact with another vehicle or object. This coverage pays either the cost of vehicle repair, or the Actual Cash Value of your automobile, whichever is the lesser.

It is frequently easier for you to go through your own insurance company to pay for property damage. Your company will pay the damages and then subrogate against the liability carrier; the liability carrier will have to pay back your insurance company. The downside to this is that your deductible will apply; however, you can usually recover the deductible amount from the liability carrier within a few weeks.

Collision can essentially act as Underinsured Motorist coverage for property damage if your collision coverage amount exceeds the at-fault vehicle's property damage coverage amount, and the damage to your vehicle exceeds the at-fault vehicle's property damage coverage amount. Use of Collision does not assign insurance points, so it does not trigger an automatic increase in your premiums.

Uninsured Motorist

If the at-fault vehicle does not have valid insurance, you may be able to file property damage under their Uninsured Motorist Coverage. Uninsured Motorist coverage will provide protection when an uninsured driver, who is at-fault, injures you or another covered individual through physical contact between your vehicles. It also provides property damage coverage. Recovery under Uninsured Motorist coverage requires physical contact between the cars. Use of Uninsured Motorist coverage does not assign insurance points, so it does not trigger an automatic increase in premiums.

Underinsured Motorist

Underinsured Motorist coverage will provide protection when an underinsured driver who is at-fault for a car accident causes injury to a covered individual, but does not provide coverage for property damage. An underinsured driver is one who has liability limits that are less than your Underinsured Motorist limits, and not enough to cover the losses of the people the underinsured driver injures in an at-fault accident. The Underinsured Motorist coverage will pay a maximum of the difference between the other driver's Liability limits and your Underinsured Motorist limits.

Gap Coverage

A gap car insurance policy insures you for the difference between what you owe on your car and what your insurance company says it's worth. Gap coverage is frequently offered by automobile leasing companies as part of newer car loans, but not explained by salesmen as anything more than a charge that will increase your car payment.

Gap insurance is important because standard comprehensive and collision auto policies only cover your car's "fair market value," which can be as little as 80% of what you paid for your car, starting the minute you drive it off the lot. If your car is declared a total loss as a result of an accident, you could become responsible for the other 20% (or more) of your loan's value. If you have gap coverage, it will cover the difference between the fair market value of your car and your loan payoff amount. It will not replace a down payment on a new car or other expenses. Gap coverage typically moves very slowly and only pays off a month or more after the liability insurance has paid its portion.

Car Accident Case Review

Once we receive your information, we will route your inquiry to our car accident injury team. Every effort will be made to contact you within one business day. You will never be obligated to hire a car accident lawyer. For immediate help call us now, toll-free, at 1-866-780-3551.