Common Types of Auto Insurance Claim Damages in California

California has a compulsory automobile insurance system. This means that all drivers and automobile owners must have liability insurance coverage for their autos at all times when operating on California roadways. The purpose of this compulsory system is to require coverage to ensure the recovery of money damages against negligent drivers who cause accidents. What follows is an outline of the types of damages that a valid California liability policy could pay for in the event of an accident.
The types of damages collectable under an automobile insurance policy are based on those damages recoverable under the current common law and statutory law. In other words, a person can collect anything on an automobile insurance claim that could potentially be collected as though the underlying tortfeasor (negligent driver) were sued in a court of law and lost. This is because the carrier would be required to defend a lawsuit against their own insured in court should litigation commence for an act covered under the insured's policy. Therefore, the types of monetary damages under the policy naturally grow out of the remedies for negligence available in legal proceedings. Here they are:
r>1) Property Damage (or PD for short): This is the simplest type because all that a person must do is look at the automobile before and after the accident. A body shop is able to calculate the cost of replacement parts and labor to bring the car back to normal condition. Usually this is a simple calculation. In cases of "total loss" where it costs of repair are more than the value of the car after repair, the carrier will just pay the owner the value of the car after repair.

2) Bodily Injury (or BI for short): This is a little more complex than PD because it often takes expert medical opinion to prove damages. The injured party will need seek medical documentation for their injuries as soon as possible and keep a consistent treatment plan with the appropriate medical professionals. This will substantiate that the harm resulted from the crash. Merely stating that pain exists is generally not enough to collect money at trial without a strong doctor opinion about the onset of an injury. Some injuries are more apparent than others, so be vigilant to get a doctor examination as soon after the accident as possible to document and treat the health condition.

3) Lost Wages (Present and Future): When work is missed due to physical and/or emotional trauma resulting from any form of car, truck or vehicle crash, wages are usually lost. The law allows for the collection of these lost wages from the party who caused the crash. Be certain to obtain documentation of missed work as well as documentation by a doctor as to why it was missed. Including documentation from a doctor and from the employer is extremely important, or risk having the lost income claim denied.

4) Pain and Suffering or Loss of Enjoyment: These are knows as general damages and they are awarded at trial for the general suffering and mental anguish that one goes through as the result of bodily and mental harm. They are not tangible and not easily calculated by any scientific method. But as a rule of thumb, lawyers use a multiplier of the past and future medical expenses to come up with a figure to pitch to the jury. In the past, the generally accepted rule was 3x the medical expenses. In todays climate, the reality is that 1x to 2x will be collected on an insurance claim settlement before the filing of a lawsuit.