types of insurance
Types of Insurance: A Confusing Topic Summarized
If you have been injured in an accident, insurance coverage can be a daunting field to try to understand. Listed below are summaries of a few of the most common types of insurance coverage.
Liability insurance pays for damages and injuries sustained to other parties of an accident if you are the at-fault driver who caused the accident. If you are determined to be the cause of an accident, then your liability insurance will cover the costs that the other party incurs. South Carolina requires minimum liability coverage in the amounts of:
• $25,000 for bodily injury per person;
• $50,000 for bodily injury for all individuals injured in one accident; and
• $25,000 for property damage to the other driver’s vehicle.
Uninsured Motorist Coverage
In South Carolina, a driver is also required to carry uninsured motorist coverage. This type of insurance coverage pays for damages and injuries sustained in an accident caused by a driver who does not have car insurance. Damages incurred in hit-and-run accidents are also covered by uninsured motorist coverage, as there is no known at-fault driver to sue in a hit-and-run accident.
Underinsured Motorist Coverage
Underinsured motorist coverage is not required by law, but can be extremely helpful if you are injured in an automobile accident. Because many states have low minimum coverage requirements, another driver’s insurance may not be enough to cover all of the damages you suffer from an accident. Underinsured motorist coverage allows you to draw from your own policy if you are injured in an accident caused by another driver and your damages exceed the other driver’s insurance coverage limits.
Collision coverage is an optional coverage in South Carolina. This form of insurance coverage pays for physical damage caused to your vehicle, such as your car being damaged by driving into a tree, building, or another vehicle. Collision coverage may also pay for the replacement value of your car if your vehicle is totaled.
Comprehensive coverage covers the costs of repairing damages from an event that would not otherwise be covered by automobile insurance. Comprehensive coverage can cover damage to your car in situations such as:
• Hitting a deer
• Fallen trees
Personal Injury Protection
Personal Injury Protection, also known as PIP, covers costs related to treatment of any injuries that you may sustain during an accident. Since medical bills for serious injuries from automobile accidents can be extremely expensive, PIP is available to cover your medical bills, regardless of whether you were at fault or not.
If your car has been damaged or totaled in an automobile accident, insurance coverage generally only pays for the vehicle’s current fair market value. Unfortunately, this price can be much lower than the cost of replacing your vehicle. Gap insurance, or Guaranteed Auto Protection insurance, is helpful when leasing or financing a vehicle, as it covers the difference between the value of the car and the payment amount left on the vehicle.
Have Questions? Call Today!
If you were injured in a car accident and have questions regarding possible recovery and types of insurance coverage and would like to schedule a free case evaluation with our car accident attorneys, please call (843) 839-4111 today.
Insurance minimum requirements: http://doi.sc.gov/588/Automobile-Insurance
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The Lovely Law Firm represents clients in Myrtle Beach and surrounding areas with criminal and personal injury cases.
Firms past performance and experience does not guarantee future results. No fee if no recovery. Injury cases are handled on a contingency fee calculated before expenses from gross recovery. Costs are paid by the client regardless of outcome.
The Lovely Law Firm is located at 1053 London St., Myrtle Beach, SC 29577. Attorney Responsible Justin M. Lovely