Insurance Policies Are Contracts:

All insurance policies are contracts between you and your insurance company. The language of the policy dictates your rights. When you have a question, your policy is the place to look for answers. Unfortunately, most policies are hard to understand. At the law office of Large and Associates, we want you to know your rights and we help you understand them.

Kinds Of Coverage:

Property Damage - This coverage pays for damage to the property of others. It may include someone else's car, a fence that you destroy, or other property damaged in an accident that is your responsibility.

Collision - Collision coverage pays for damage to your car caused by collision (less any deductible). If you have a new car, or an expensive car, collision coverage may be a major part of your insurance cost.

Comprehensive - Comprehensive coverage pay for losses due to theft, fire, vandalism and glass breakage.

Uninsured / Underinsured - This coverage will reimburse you for your losses if someone at fault has no insurance or has less insurance than needed to make you whole. (This coverage is very important in our state since automobile liability insurance is not mandatory.)

Bodily Injury Liability - This pays others for losses from an accident, which is your fault. This is the most expensive (and necessary) coverage on most policies.

Medical Payments - This coverage pays for medical expenses you or your family incur as a result of an auto accident. It also covers passengers in any automobile you may be driving, regardless of fault.

Policy Limits:

This is the maximum amount the insurance company can owe for a loss. The amount actually paid by the company will be based on your legal damages and cannot be more than the limits of your policy.

Recommended Policy Limits:

Anyone can make a driving error that results in serious injury to someone else. Given the risk of serious injury, and the costs of medical care, we recommend that everyone carry the following minimal limits. (If you can afford more - get it!)

Property Damage = $50,000

Bodily Injury = $100,000 per person; $300,000 per accident

Medical Payments = $50,000

Uninsured = $100,000 per person

Underinsured Coverage = $300,000 per accident

We are often asked the same questions about auto insurance. Naturally there are differences between policies, and you should check your policy to see that these answers apply to your situation.

Will I be covered if involved in an accident while driving someone else's car?

Yes, your responsibility for injury to others, or for damage to other autos will generally be covered. There may not be coverage for the damage to the vehicle you're driving unless the owner purchased Collision coverage.

Can my son or daughter, covered under my policy, drive someone else's car and still be covered by my policy?

A son or daughter can drive someone else's car and still be covered by your policy, if he or she is a resident of your household and has reasonable belief that he or she is entitled to use the vehicle being driven.

What should I do if I have an accident?

You should immediately report all accidents, however slight, to the police and your insurance company. The parties involved should receive from each other the name, address, license number, plate number, insurer, date and time of accident, and the names and addresses of witnesses. Your insurance company should be notified before you authorize repairs to your car.

What if the other driver is at fault and has no insurance?

If you have uninsured motorist coverage your own insurance company will step in and pay as if they were the guilty driver's insurance company. If your case is filed in court, your insurance company will hire a lawyer to defend the other driver and will pay any amounts the court orders the guilty driver to pay. Naturally, the insurance company only has to pay amounts up to the policy limits you purchased.

Will my policy pay for a rental car if my car is damaged?

This varies from policy to policy, but typically car rental is paid for the period between the accident and repair, or until such time as the vehicle is appraised as a total loss. Insurance adjusters will typically offer to pay only the least expensive rates available for rental.

If my car is totaled, will insurance pay off my car note?

Not necessarily, your recovery will be for the actual cash value of the car not the amount owed. The term "actual cash value" refers to what it would cost to replace your damaged vehicle with one similar in condition and mileage. Conditions such as un-repaired previous damage and tire wear are all considered in determining actual cash value. If your car has been financed, the actual cash value may be much less than the money owed.

What is the meaning of "subrogation" when applied to my automobile insurance?

When your insurance company pays you for a loss caused by another driver, the company may recover the full amount of their payments made from that other party. This also means if your insurance company pays you, you will have to cooperate with them as they sue the other party. You must repay your insurance company any amounts they have paid you if your claim against someone else is successful. There are some situations where the subrogation interests at an insurance carrier can be waived or defeated altogether. These are complex issues that require the advice of an attorney.

Will use of my car in a car pool be covered?

As long as the carpool is not intended as a business operated for profit, insurance protection is not affected. If you use your car in a typical share-the-ride pool where everybody takes turns driving, or if one person drives all the time and only collects for expenses from the passengers, his or her policy provides regular coverage. However, car-pooling results in an increased number of passengers in the car, so you should consider increasing your liability limits.

What happens if I'm in an accident and don't have any insurance?

Tennessee does not require that drivers have insurance, but does require that they be financially responsible for any accidents in which they are at fault. If a driver without insurance is at fault, that driver must post a bond to protect the injured party or have his driver's license revoked. The process of revoking a driver's license is involved, but anyone can call Tennessee Department of Safety, Financial Responsibility Section for more information. (615)741-5668

Notice:

Each case is different and different facts may yield a result you would never expect from reading this brief Web page. The information on this Web site cannot replace the careful consideration of personal factors and changes in the law, which may apply to your legal problem. While this information may help you, do not rely on it as the final answer to a legal question.