Car Accident step by step process Part 16: Understanding Policy Limits

You are hurt in a car accident.  You have car repairs, medical expenses, you cannot work...your car insurance should pay, right?  Yes they should BUT what they pay is based on you.  It's called policy limits and you decide what they will be when you get car insurance.




For example:  In Colorado all driver are required to carry $25,000/$50,000 but what does this mean?

The first number is easy:  This is the number that is allowed per person in a car accident. The second number is the tricky part...this number is the TOTAL amount that is paid per occurrence.  What this means is if there are four people hurt in a car accident the $50,000 is divided between the four; $12,500 per person.  This number is regardless of how many people are hurt.  Imagine a five car pileup.....12 people are injured....this is not a lot of money to go around.

Now comes the uninsured/underinsured  (UM/UIM) coverage.  In Colorado you can waive this in writing but for the few extra dollars it is well worth the money.  My personal example; I was hit by a person who carried only the required amount 25/50.  $25,000 didn't even come close to what I needed for my injuries.  This is where my UIM (underinsured motorist kicked in and my insurance company paid the difference.  

I will admit until I needed it, I didn't understand it....by then, it's too late.  After my car accident and the information provided to me by my Attorney, Carol Zeisler, I changed my policy.  When I went in to discuss this with my agent I was surprised at the little difference it made in my premium amounts.  

No one wants to be in a car accident.  Most of us take care when driving so we aren't involved in a car accident....but they happen no matter how much care you take when driving.  One trip to the grocery store, to work or going home.....five seconds later your life can change.  

Ask yourself this:  would $25,000 pay for a lifetime injury in your life?  Know your policy, know what it means to you and if you are ever in a car accident....hire an Attorney. 




Like Zeisler & Associates, Attorney at Law, PC on Facebook or visit their website.

Pueblo Office: 113 W. 12th Street  (Map it)

Colorado Springs Office:  422 E. Vermijo Ave., Suite 412 (Map it)

Car Accident step by step process Part 15: Understanding your insurance dec page

This one is fun.  Pull out your declaration page for your auto insurance and see what is actually covered and what it means:

This is a general overview of the definitions of what auto insurance really means.  For a clear understanding call your agent for details.  Know what your insurance will pay for, cover and will not BEFORE you get into a car accident. 



Liability Coverage/Bodily Injury Liability (Some know it as Liability; BI)
You are not covered:  Let me explain; This type of policy covers OTHER people's bodily injuries or death in which you may be found responsible.  This could be THEIR medical bills, loss of income, pain and suffering.  HINT:  Have enough to cover yourself against in a lawsuit so your personal assets are protected.     Again, this type of coverage does not cover you or other people on your policy.  Required by most states.

Property Damage Liability (PD)
This type of policy covers you if your car damages someone else's property; most cases their vehicle but it could be their home/fence should you drive through it.  It will also provide you with a legal defense if they file suit against you.  Required by most states.

Physical Damage Coverage (Comp and Coll) or Comprehensive Coverage
Covers your vehicle and the damage to other vehicles in which you may have caused.  This usually covers stolen vehicles or damage from outside forces.  It will pay to have your vehicle (and others) fixed (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Collision Coverage (Coll)
This is when someone or something else hits your vehicle.  This coverage will fix your vehicle (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Underinsured Motorist Bodily Injury (UNDUM)
Covers you, members of your household and your passengers for injuries and/or death caused by another person's negligence.  This coverage pays when the negligent person does not have enough coverage through their policy.

Uninsured Motorist Property Damage (UMPD)
This coverage is for your property when it is damaged by a negligent person who does not have insurance.  If you do not have collision coverage (Coll) you may have a limit on how much is paid for repairs.  If you do have collision coverage than this would pay for your deductible only (in some States...please check your State for complete details).

Underinsured Motorist Property Damage (UNDPD)
Covers your property when the negligent party does not have sufficient coverage on their policy.  As with the Uninsured Motorist coverage some states have a max this will pay for and if you have collision, this will pay for your deductible (in some States).





Like Zeisler & Associates, Attorney at Law, PC on Facebook or visit their website.

Pueblo Office: 113 W. 12th Street  (Map it)

Colorado Springs Office:  422 E. Vermijo Ave., Suite 412 (Map it)

Lending your car to your friend

We've all done this...either lent it out to a friend or borrowed one from them.  No problems, right?

Here's the problem.  You lend your car to your friend.  Your friend is in a car accident.  Who's responsibility is it for the damages?

Unfortunately, in most cases, you are as the owner of the car.  You will need to file a claim with your insurance company and you will be responsible for the deductible.  Okay, your friend says he/she will cover the deductible because they feel horrible.



It gets worse....a claim has been filed on your auto insurance and we all know what that means. Possible higher premiums because we know that Insurance Companies only want perfect drivers.  

Now it gets worse:  We've talked about understanding your policy and what it covers.  Let's say you have the minimum (Colorado) $25,000/$50,000.  Your friend who was driving your car had two other people in the car with them when the accident occurred. Now each person is entitled to the first number $25,000 max BUT since there were three in the car....the $50,000 kicks in and now that is divided between the three.  We talked about Single vs. Multi-Car accidents so let's assume this one was a multi-car accident.  Your friend hit a car that had two people in it.  Now that $50,000 is split between the five of you.  I don't know about you but my car accident medical bills far exceeded $10,000.  

Remember, in most cases, your insurance covers the car not the driver.  (Which really bothers me because it it the driver's credit and claim history that helps determines the premiums...but who am I, right?)  There are some occasions (check your state and insurance policies) that once your insurance has reached policy limits that your friends' insurance may kick in.  

Other factors that you need to consider:  

• Negligence:  If you lend your car to someone you know SHOULD NOT BE DRIVING (example: intoxicated) and they cause an accident which results in death.....you may be at risk for a wrongful death suit.
• Comparative Negligence:  Assigning blame through percentages.  If you auto insurance policy covers other drivers the claim may be split between your policy and the other vehicle's policy.  (Check your state and your policy)

When the policy limits have been exhausted the injured parties can now sue you personally.  Do you own a home?  Do you have any assets?  If you do they are vulnerable to a lawsuit.  All because your friend needed to borrow a car.  

I'm not saying don't lend your friend your car.  I'm saying if you do you need to know what responsibility you may have if there is a car accident.

Please check with an Attorney to know what your rights, responsibilities and possible outcomes of this situation may be.  Remember your auto insurance is there for your protection; just in case.....but they fight the claims.  Your best protection is knowledge and the best way to know your rights is to speak with an Attorney.


Like Zeisler & Associates, Attorneys at Law, PC on Facebook or visit their website for more information.

Been involved in a car accident?  Tell me your story.

The information provided here is not to be construed as legal advice.  Please consult an Attorney if you have any questions.  General questions about Colorado Personal Injury can be asked here and Carol Zeisler will gladly assist you in the proper direction for your situation. 

What does your declaration page for you auto insurance really says

This one is fun.  Pull out your declaration page for your auto insurance and see what is actually covered and what it means:

This is a general overview of the definitions of what auto insurance really means.  For a clear understanding call your agent for details.  Know what your insurance will pay for, cover and will not BEFORE you get into a car accident. 



Liability Coverage/Bodily Injury Liability (Some know it as Liability; BI)
You are not covered:  Let me explain; This type of policy covers OTHER people's bodily injuries or death in which you may be found responsible.  This could be THEIR medical bills, loss of income, pain and suffering.  HINT:  Have enough to cover yourself against in a lawsuit so your personal assets are protected.     Again, this type of coverage does not cover you or other people on your policy.  Required by most states.

Property Damage Liability (PD)
This type of policy covers you if your car damages someone else's property; most cases their vehicle but it could be their home/fence should you drive through it.  It will also provide you with a legal defense if they file suit against you.  Required by most states.

Physical Damage Coverage (Comp and Coll) or Comprehensive Coverage
Covers your vehicle and the damage to other vehicles in which you may have caused.  This usually covers stolen vehicles or damage from outside forces.  It will pay to have your vehicle (and others) fixed (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Collision Coverage (Coll)
This is when someone or something else hits your vehicle.  This coverage will fix your vehicle (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Underinsured Motorist Bodily Injury (UNDUM)
Covers you, members of your household and your passengers for injuries and/or death caused by another person's negligence.  This coverage pays when the negligent person does not have enough coverage through their policy.

Uninsured Motorist Property Damage (UMPD)
This coverage is for your property when it is damaged by a negligent person who does not have insurance.  If you do not have collision coverage (Coll) you may have a limit on how much is paid for repairs.  If you do have collision coverage than this would pay for your deductible only (in some States...please check your State for complete details).

Underinsured Motorist Property Damage (UNDPD)
Covers your property when the negligent party does not have sufficient coverage on their policy.  As with the Uninsured Motorist coverage some states have a max this will pay for and if you have collision, this will pay for your deductible (in some States).

Zeisler & Associates, Attorneys at Law, PC on Facebook or visit their website for more information.

Tell me about your story...did you learn too late about your auto insurance policy?

Understanding Policy Limits

You are hurt in a car accident.  You have car repairs, medical expenses, you cannot work...your car insurance should pay, right?  Yes they should BUT what they pay is based on you.  It's called policy limits and you decide what they will be when you get car insurance.





For example:  In Colorado all driver are required to carry $25,000/$50,000 but what does this mean?

The first number is easy:  This is the number that is allowed per person in a car accident.  The second number is the tricky part...this number is the TOTAL amount that is paid per occurrence.  What this means is if there are four people hurt in a car accident the $50,000 is divided between the four; $12,500 per person.  This number is regardless of how many people are hurt.  Imagine a five car pileup.....12 people are injured....this is not a lot of money to go around.

Now comes the uninsured/underinsured  (UM/UIM) coverage.  In Colorado you can waive this in writing but for the few extra dollars it is well worth the money.  My personal example; I was hit by a person who carried only the required amount 25/50.  $25,000 didn't even come close to what I needed for my injuries.  This is where my UIM (underinsured motorist kicked in and my insurance company paid the difference.  

I will admit until I needed it, I didn't understand it....by then, it's too late.  After my car accident and the information provided to me by my Attorney, Carol Zeisler, I changed my policy.  When I went in to discuss this with my agent I was surprised at the little difference it made in my premium amounts.  

No one wants to be in a car accident.  Most of us take care when driving so we aren't involved in a car accident....but they happen no matter how much care you take when driving.  One trip to the grocery store, to work or going home.....five seconds later your life can change.  

Ask yourself this:  would $25,000 pay for a lifetime injury in your life?  Know your policy, know what it means to you and if you are ever in a car accident....hire an Attorney. 

Next conversation will be about MedPay.  Hope you stay tuned.


Like Zeisler & Associates, Attorney at Law, PC on Facebook or visit their website for more information

Please tell us about your story.