| FAQs Montana Car/Truck/Motorbike Insurance
FAQ
There are several kinds of coverage available to
motorists including liability coverage, comprehensive
coverage, collision coverage, medical payments coverage,
under insured coverage and uninsured coverage. These are
explained below:
What is Medical Payments or "Medpay" coverage?
What is Liability Insurance?
What is Uninsured or Underinsured Motorists coverage?
What is covered by my Comprehensive coverage?
Collision Insurance
General
Insurance Concerns
Medical
Payments Coverage
"MED PAY" or Medical Payments coverage is also known
Personal Injury Protection or "PIP" in other states.
This type of coverage will cover you and your
passengers' medical expenses for injuries sustained in a
wreck. This coverage will also cover your medical
expenses if you are injured in someone else's vehicle.
In other words, this coverage travels with you. It is a
no-fault coverage which means regardless of fault, this
coverage kicks in for necessary and reasonable medical
expenses. Med Pay only covers actual medical expenses
resulting from the accident. It will not cover pain and
suffering or lost wages.
Liability Insurance
"AT FAULT" or Liability insurance is designed to cover a
driver for the cost of damages he or she may cause as a
result of an accident for which he or she is at fault.
The attorney for an injured party will attempt to obtain
payment for the injured party's injuries and other
damages through the liability insurance company of the
at-fault driver. If negotiations fail, the lawyer should
discuss filing a lawsuit against the at-fault driver
with you. If an at-fault driver is sued for the damage
he or she caused, the insurance company that issued the
liability policy for the driver will provide the
attorney to defend the at-fault driver and will
generally cover the cost to defend any litigation.
Uninsured / Underinsured Motorists Coverage
"UIM/UM COVERAGE" basically takes the place of an
at-fault driver's liability insurance in the event that
the at-fault driver is uninsured or their policy does
not provide enough coverage to fairly compensate you for
your injuries.
Comprehensive
Coverage
"COMPREHENSIVE INSURANCE" covers damage to your vehicle
caused by things other than collision. This will
generally include such risks as hitting a deer,
vandalism, theft, and fire. Each policy will include
specific exclusions, or explanations of risks they will
not cover.
Collision Insurance
"COLLISION INSURANCE" is to cover the cost of damage to
your vehicle should you be involved in a collision.
There will usually be a deductable, or amount you must
pay in addition to the insurance coverage. Common
deductable amounts are $250, $500, and $1000.
General
Insurance Concerns
All too often, we hear clients ask and say, "Why should
my insurance pay? The wreck was not my fault! I don't
want to make a med-pay claim with my insurance because
the wreck wasn't my fault and my insurance rates will
increase."
This feeling is understandable but generally the
assumptions are incorrect. For example, you pay a
separate premium for medical payments coverage. Your
insurance carrier agrees to accept the risk that you may
be involved in ANY auto accident and you may sustain
injuries. They accepted the risk upon acceptance of your
premium for that coverage. As the above definition
suggests, med-pay coverage is "no fault." Whether you
are at fault for an accident or another driver is at
fault does not matter. You paid a price for medical
payments coverage and your insurance carrier is
obligated to pay those medical expenses up to the
med-pay coverage limits. Your rates generally do not
increase for making a med-pay claim.
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