Your insurance policy can have a significant impact on the claim process, in the sense that it is important for you to understand what are the key coverages, especially UM/UIM in states where these coverages are not required.

Let’s not forget that under your insurance policy, your insurance company has a duty to defend you legally against any liability and compensate you for any injuries sustained in the event of the accident. However, your policy might have some limits, for instance, in California, the minimum policy is $30,000 per incident, in the sense that if you are liable for $25,000 in an accident, your insurance company will fully cover the claim.

Here are the type of coverages outlined in your insurance policy and how they can affect your claim process:

• Liability Coverage:if you’re at-fault, it includes property damages and bodily injury coverages. In simple terms, it insures damage caused to another person’s property by your vehicle, also injuries sustained by another person because of the accident (medical bills, lost wages, pain and suffering, etc). However, for your own losses, you would definitely need other coverages since this one only insures the other party’s losses.

• Collision Coverage: regardless of fault, collision insurance covers the damages caused to your vehicle. It is important to note that this coverage only insures damage caused to your vehicle and not damage to other vehicles or objects, or for bodily injuries sustained in the accident. In this case, you would be subject to deductible, and right after that, the benefits of insurance cover the rest. To illustrate this, per California Law, you have a policy with collision (500$ deductible), you were hit by an uninsured driver, so you file a collision claim for $3,000 in car damage, so you end up paying $500 and the insurance will cover the remaining $2,500.

• Comprehensive Coverage: In events other than collision, such as theft, vandalism, weather events, falling objects,etc. This helps cover damage to your vehicle. 

• UM/UIM Coverage: Required in most states, in case there is an incident where the driver at-fault is uninsured or underinsured, UIM OR UM can cover the gap of the liability up to your policy limit.

• Personal Injury Protection (PIP): Regardless of fault, in no-fault states (Florida, Hawaii, Kentucky,etc.), this could help you cover medical expenses and sometimes lost wages, the policy limit varies depending on the state. For instance in Florida, it could go up to $10,000.