You may have heard of property and casualty insurance. The first part deals with material things like furniture, houses or cars. The last part, accident insurance, deals with the provision of liability insurance. Let's put it this way. You are driving through the city center at 40 mph and for some reason you hit the car next to you, damaging the exterior of the car. The driver also suffered minor injuries. In this case, accident insurance pays for car repairs and medical expenses for the driver's injury.
In short, accident insurance pays for you if you are convicted of an accident that could damage someone else's property or bodily harm
How does it relate to home and auto insurance?
It's no secret that accident insurance is part of home and auto insurance that offers liability coverage.
Kind of confusing, right? Let's put it this way.
Alex backed up on the way to his office. As he backed out of the driveway, he ended up colliding with a car belonging to his neighbour David. The truth is that Alex is responsible for the crash, intentional or not. Since he was at fault here, he was obliged to pay David compensation for the damage to his car. This is where accident insurance comes into play. Accident coverage from Alex Auto Insurance will cover losses in this situation.
How to File an Accident Insurance Claim
While the process varies by insurance company, some things are fairly standard. If you are the culprit, the claim will go to the other side. It's important to note that auto and home liability claims do not include deductibles. This allows insurance companies to pay all costs for confirmed claims. However, the confirmation of the claim is subject to the limitations agreed upon at the time of the agreement.
If you are the person who suffered an injury or property damage, you will need to work with the perpetrator's insurance adjuster to resolve the issue. They may pay you directly or in some cases through a third party.
Do I Need One?
There is no second opinion that everyone should have accident insurance. Also, it is no longer a matter of choice, as it is the rule in most states. Some states even add personal injury protection to the list of required mandatory insurance policies.
The Bottom Line.
Adequate accident insurance is important whether or not it is required by law. In addition to the financial protection it provides, it also prevents you from paying out of pocket if you end up hurting someone or damaging their property. It is only recommended to increase the number as much as possible to increase financial protection