Accident Insurance Company
Reader’s Question:
Is it okay not to report to my accident insurance company an accident in which a suspended licensed driver drove my car and the incident was not his fault? Will the at-fault driver’s insurance company cover the damages to my car even if the driver’s license was suspended?
Tina
Chicago IL
First of all, a driver whose license was suspended is not allowed to be driving a car and could be facing some serious problem if he/she was found by the authorities driving without license especially if they were at-fault. However, in your case, you may not be obliged to tell your insurance company about the minor accident but it is wiser to let you report the incident that your car was involved in.
The at-fault driver’s accident insurance company should cover all the damages to your vehicle even if the driver’s license of the other party was suspended. Try to collaborate and contact their insurance company to find out how much they will cover for the damages. The driver of your car, with a suspended license, would have faced some serious penalties once the police were called out to the scene and reported him for driving without a license.
Accident Health Insurance Cancellation
Reader’s Question:
Does the insurance company have the right to cancel my car insurance and accident health insurance policy and take my car if it is totaled?
Mark
Honolulu Hawaii
Generally, whatever is stated or specified in your insurance policy, an insurance does not possess any rights whatsoever unless stated otherwise by your state’s insurance regulatory entity. The laws and procedures regarding accidents such as accident health insurance and car insurance accidents differs from state and insurance companies.
If they declare a total loss on your car then the company will decide if the insurance reimbursement will be for the total loss or just for the repairs only. You are left with two options, to let them pay for the total loss and they will confiscate the car or you can take the money they will offer and pay for the repair yourself, but if they total the car, this option is not available. However, you may negotiate for a price with the company but it should be less than the totaled car.
The insurance company cannot cancel your policy simply because your car is totaled. But if you have made multiple claims and has had numerous accident histories, the company has the right to evaluate and cancel a policy. They can also do this in the event where your car is no longer insured.
There are also laws that protect policyholders that will protect them from unfair cancellation of policy in which case they may have to option to offer you to renew your insurance.
Accident Health Insurance
Reader’s Question:
Does an auto insurance policy also pay for your medical bills aside from my accident health insurance?
Brandon
Salt Lake City, UT
Your accident health insurance, in the event of an accident will pay for medical coverage up to a limited amount only depending on your policy. Most state laws do not require coverage of personal injury so medical coverage is normally not included unless requested by the consumer. The amount that a company will cover for medical bills is only $5,000 for which some may find this not enough.
In the US, you you probably belong to either the “No Fault States”, in which they make it compulsory for drivers to be insured with no fault insurance which will provide security against accidents; it also includes personal medical bills. The second is the “Tort States”; these are the states that require drivers to carry the liability auto insurance to third party drivers related to vehicle accidents.
Among these cases however, you should also take time to discuss if the insurance policy does cover your medical bills aside from your accident health insurance. Always double check with your insurance company the extent of the coverage.