What is accident compensation?
Accident compensation is the delivery of money (typically by an insurance company) to an injured party in a car accident. Accident compensation is awarded to those individuals, who upon investigation (conducted by the underlying insurance company), is proven to not be at fault for causing the wreck.
The accident compensation, when delivered to the victimized party, is meant to recoup the losses accrued from the damages imposed to either the vehicle or physical injuries suffered. The accident compensation is thus used to repair the damaged automobile or used to satisfy the medical bills necessary for healing bodily injuries.
Types of accident compensation:
Whenever a party causes an automobile accident, their underlying insurance policy will cover the damages sustained by the victimized party. That being said, although money is not paid out of pocket by the individual at fault, through the delivery of accident compensation, their respective insurance premiums will invariably increase.
There are various types of accident compensation; for instance, bodily injury liability insurance will cover the costs of damages done to the injured party, while a property damage liability insurance policy will cover all damages placed on someone’s vehicle or property. Collision coverage, another form of accident compensation, will cover the damages placed on the aggressor’s motor vehicle as a result of the car accident.
Proof and accident compensation:
Before any party can receive accident compensation, the insurance companies must investigate the accident to elaborate on liability issues; accident compensation will not be paid to a party unless the insurance company can prove the other party was at fault or was negligent in their actions. For example, if an individual runs through a stop sign or runs a red light and then hits a car, the individual who broke the traffic laws will be at fault and his or her insurance company will be forced to provide accident compensation to the victimized party. In other instances, when both cars have broken a traffic law that results in a car accident, both parties may be ruled liable.
Considerations and accident compensation:
Those involved in a car accident that is uninsured or underinsured may still receive accident compensation for injuries suffered if they purchase uninsured motorist coverage. Although some states will require users of motor vehicles to purchase uninsured motorist coverage, the majority of jurisdictions do not place such a mandate on individuals. That being said, if a person settles with an uninsured driver privately, he or she may no file another claim with her insurance provider.
The amount of car accident compensation will vary based on the severity of damages present in the accident. Those accidents that take the form of fender benders, meaning a party sustains minor damages, may initiate accident compensation privately or “out of pocket.” In these scenarios, the individual at fault will provide accident compensation to the damaged party based on an assessment of damages that the individual receives from a mechanic or auto body shop.