Many people wonder what happens if another driver makes an auto insurance claim against their policy. Before the matter can be settled, an investigation is conducted to determine which driver was at fault. That person, through his or her insurance company, is responsible for paying for damages to property as well as personal injury claims.
An investigation is conducted even when the accident occurs in a no-fault state. In that situation, each driver involved in the accident would make a claim to his or her own auto insurance provider. If the level of damages caused exceeds the amount of coverage available, an injured person may have the right to sue the at fault driver for the difference.
The insurance company will want to determine which driver was at fault in any case. That person will have the accident recorded on his or her driving record and may have to pay higher insurance rates when the policy is up for renewal. If the level of damage caused is severe enough, the at-fault driver’s insurance company may refuse to renew the policy.
Settling the Other Driver’s Claim
The other driver would submit a claim to your auto insurance provider. This would include an estimate for damages caused in the accident as well as medical bills, rehabilitation expenses and lost wages. If the injured person is allowed to make a claim for pain and suffering, this would be added to the other items listed in the claim.
Your insurance company would attempt to settle the claim on your behalf. Negotiating with the insured person would be done behind the scenes and without any direct input from you. The insurance company’s adjuster would be involved in this process.
Legal Action Following an Accident
If your auto insurance provider is unable to resolve the other drivers claim, he or she may take legal action against you. If you are suited to collect damages under your auto insurance policy, the insurance provider will appoint a lawyer to represent you In any legal proceedings. The insurance company is only required to pay damages up to the policy limit that you had in place at the time of the accident.
In a situation where the level of damages caused in the apps exceeds your policy limit, you would be responsible for paying the difference personally. For this reason, it is very important to choose your level of coverage carefully to ensure that you are not a position where you have to pay out personally following a car accident.
Shop Around for Best Auto Insurance Rates
To find affordable auto insurance coverage that provides you with adequate protection, make a point of shopping around before making a buying decision. Existing auto insurance customers should review their coverage and get quotes from different providers before renewing their policy when the term expires.