The level of auto insurance coverage a person has depends on the type of policy they buy. There are three types of auto insurance: collision, liability and medical. Those types, as well as the differences between at-fault and no-fault rules, will be discussed in the article below.
Common Auto Insurance Types
• Collision: If a person is in an auto accident in Honolulu, HI, collision insurance pays for the damage to their vehicle, but it does not pay the other person’s damages.
• Liability: This type of coverage pays for damages arising from the other party’s personal injury or property damage.
• Medical: Here, the policyholder’s bodily injuries are covered.
Most jurisdictions require a minimum coverage amount, and some only require liability coverage. A Honolulu accident attorney can help clients learn about state coverage requirements and how those requirements can affect a case.
No-Fault vs. At-Fault Rules
Every jurisdiction has different laws that determine responsibility for an auto accident. In no-fault jurisdictions, it makes no difference who causes an accident; each driver’s insurer pays their damages. In at-fault situations, the responsible party’s insurer pays claims for both parties.
Accidents Caused by Under- or Uninsured Drivers
In some cases, victims are involved in accidents with drivers who are either uninsured or underinsured. If this occurs, the plaintiff can use several strategies to cover their damages.
• Uninsured motorist coverage: Most insurers offer underinsured and uninsured motorist coverage. This auto insurance pays for the policyholder’s damages if the other party lacked sufficient insurance.
• No-fault laws: In these areas, the plaintiff’s insurer pays their damages, even in cases in which the other driver had no insurance. However, if the loss exceeds the policy limit, the victim can make no further recovery without suing the other driver.
Does a Victim Need a Lawyer?
Insurance companies sometimes deny legitimate claims. If this occurs, the policyholder will likely be forced to bring legal action against their insurer or the other driver. Hiring an auto accident attorney with Autoaccidentattorneyhonolulu.com can greatly simplify the process, and local lawyers know Hawaiian rules. By hiring a local attorney after an auto accident in Honolulu, HI, the customer can be on an equal footing with the insurance company.
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