After an insurance company has received a claim from a policy holder, one that was involved in a car accident, it looks closely at the coverage offered in the same customer’s policy. In other words, the extent of coverage stated in the policy becomes a primary factor in any insurance claim.

What if the driver at fault has no coverage?

The insurance company would check to see if the driver that was hit had uninsured and/or underinsured motorist coverage. If the driver’s policy did include uninsured motorist coverage, then the policy holder/driver could make a claim against the insurance company.

How much money could the driver receive after making that claim? That would depend on the stated limits in the driver’s policy. The higher those limits, the larger the driver’s compensation.

If the policy holder/driver did not pay for uninsured motorist coverage, then he or she might want to go after the assets of the responsible driver. Of course, an uninsured driver seldom has many valuable assets.

What could happen if you were to be found at-fault for a given accident?

If that accident took place in a no-fault state, then the other driver’s insurance company would need to cover the expenses created by your mistake. Still, your insurance would have to reimburse that company, and it would increase the cost of your premium. If the accident had not taken place in a no-fault state, then your insurance company would begin to study the amount of coverage mentioned in your policy. Did that coverage include enough money to pay for all the expenses created by the collision that you caused?

If your coverage did not cover all those expenses, then your insurance company would supply you with a defense attorney. That attorney would advocate for you during negotiations, and at a trial, if necessary. That Personal Injury Lawyer in Mississauga would try to reduce the size of the compensation, which should be handed to the other driver.

Suppose, though, that you had not put a lot of money into the provision that related to your liability coverage. If that were the case, then your coverage might not be enough for taking care of all the expenses. That would mean that you, yourself could be held liable for paying all those expenses.

Your limited coverage would supply money for a part of the expenses. Still, you would have to make up the difference. Keep in mind the fact that while you had to carry that added financial burden, your own insurance company would almost certainly increase the cost of your premium. After all, your failure to buy an adequate amount of coverage had delayed the presentation of the other driver’s deserved compensation.