There are 4 types of car insurance coverage options you should know about in order to protect yourself from unforeseen complications related to paying for your medical expenses and other costs associated with a car accident in Indiana through the assistance of one of Indianapolis’ traffic accident lawyers.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage
Indiana law requires all drivers to carry liability insurance of $25,000 per person and $50,000 per vehicle, but not everybody does.
If you’re involved in an accident and the motorist is uninsured or his or her coverage is insufficient to cover the cost of your medical expenses, you are responsible for the balance. To protect yourself and your loved ones in the event of such an accident, insurance companies offer optional coverage extensions called uninsured motorist (UM) and underinsured motorist (UIM) coverage.
If your car accident in Indiana is the result of another’s negligence and they lack insurance altogether, your provider will cover the costs under your uninsured motorist (UM) policy up to the pre-determined limits of your policy’s coverage; if the motorist had insurance but not enough to cover your costs, your underinsured motorist (UIM) coverage will cover the balance up to your policy’s limit.
These protections only exist if you opt-in for the additional coverage from your insurance provider – otherwise, the burden of covering those costs is entirely on you.
Medical Payments Coverage
Most people don’t realize that costs from an accident caused by someone else will not be paid as they are incurred – that won’t happen until the case is completely settled, which can take months or years. In the meanwhile, your costs are stacking up, negatively affecting your credit, and hampering your life.
However, many auto insurance providers offer additional optional coverage in the form of medical payments coverage that pays for medical expenses related to an accident up to a certain limit (specified in your policy) with no deductible or co-payment. For the most part, this coverage is fairly inexpensive, and can be the difference between financial security and dire straits after a serious car accident in Indiana involving injuries.
GAP Insurance
Guaranteed auto protection (GAP) plans cover the difference between what your insurance will pay if your vehicle is stolen or destroyed and what you owe on the vehicle.
For instance, if you have recently purchased a vehicle and owe $15,000 on it, and your insurance company will only pay $12,000 if it’s destroyed, you are stuck shouldering the $3,000 difference. GAP plans can be very useful additions to a current policy if you owe more on your vehicle than you would otherwise receive from your insurer.
If you are facing complications with your insurance provider or after a car accident in Indiana, a team of Indianapolis traffic accident lawyers can assist you with your claim. Be sure to team with Indianapolis traffic accident lawyers who are well-versed in car accident claims involving insurance discrepancies.
