Debunking Common Myths About Car Accidents and Insurance

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After a car accident, you need to notify your auto insurance company as soon as possible. For many people, this is when they realize some of the things they believed about car accidents and insurance claims are myths.

The fact is that insurance policy documents aren’t exactly a thrilling read. They contain legal terms and conditions that most people don’t understand. However, knowing what your car insurance covers and what specific terms mean can help you when dealing with the aftermath of your crash.

It’s likely you’ve heard these common myths about car accidents and insurance. Read on to find out the truth so you’ll know what to do next. In the meantime, if you need help finding a lawyer, contact 1-800-Injured. 1-800-Injured is an attorney and medical referral service that can connect you with local professionals.

The State Minimum Required Coverage of Auto Insurance Is Sufficient

In Minnesota, the law requires you to have a basic amount of auto insurance coverage. While this makes you legal for the roads, it may not be sufficient enough to cover all of your damages in an accident.

Even a small accident can cost more than what your coverage allows, meaning you’ll be stuck shelling out money to cover your repairs. The state minimum is generally not enough for any kind of car accident.

My Car Insurance Covers Everything

Along the same thread, you may hear people boasting about how their car insurance covers it all. If they only have the basic requirements mandated by the state, it’s a sure bet that the insurance policy doesn’t cover everything.

If you get into an accident and the damages exceed your policy limit, you will be responsible for those additional costs. On the other side of things, many drivers don’t realize how high their deductible is and are shocked they have to pay that first before the coverage kicks in. The best course of action is to speak to your car insurance company before an accident and find out exactly what is and isn’t covered.

My Rates Will Go Up If I File a Claim

Filing a claim is not what causes your insurance rates to rise. There is a slight truth to this though, only if your claim is above a specific amount for an accident that is mostly or fully your fault. If you caused the accident, the other driver can file a claim with their insurance, and this will also increase your rate—even if you didn’t file a claim on your end.

Basically, if you didn’t cause the accident and have the evidence to back that up, you don’t need to worry about your premium increasing. You will need to report that an accident occurred to your insurer, though. Failing to do so could void your contract, and if the other driver contacts your insurance company, they will be aware you did not notify them of the incident.

No-Fault Insurance Means You’re Not At-Fault

Some states are at-fault while others are no-fault. Minnesota is a no-fault state, which many people assume means it’s not their fault when an accident occurs. However, that myth is one that has disappointed quite a few drivers. With no-fault car insurance, it means that your auto insurer will pay medical expenses and lost wages for injuries due to a car crash, no matter who was at fault.

This allows everyone to take care of their immediate medical needs while the insurance companies determine who is to blame. If you caused the crash, you and your insurer would be responsible for property repairs and other damages. However, if the other driver caused the crash, you would exchange insurance information with them and then make a claim under their property damage coverage.

There’s Nothing You Can Do When an Uninsured or Hit-and-Run Driver Hits You

Sometimes, you may come out to your car in a parking lot and find it was hit. Other times, you may be driving and have an uninsured driver crash into you. They may even flee the scene before you can exchange information. Does this mean you’re completely left in the lurch?

Thankfully in this state, you’re required to have underinsured (UIM) and uninsured (UM) motorist coverage. Call your insurer after the incident to report it as you should, but be advised that they may try to lowball your payment. Even with this special coverage in place, you may want to have a car accident attorney help you get the best possible results so you’re not stuck with a mountain of bills.

Let the Insurance Companies Work It Out Because it’s Cheaper Than Hiring a Lawyer

One of the worst myths that people believe about car accidents and insurance is that it’s better to let the insurance companies work it out. This essentially means you’re letting them decide your fate. Insurance companies do provide those payments you need in a crisis like this, but they aren’t in it for your best interests.

Sure, they’ll pay what is required on the most basic levels. As a result, many drivers are relieved to be offered a settlement check quickly so they can get on with their lives. Unfortunately, this also means you’re signing away your rights to pursue additional damages.

If your car accident left you with hefty medical bills, major property damage, and a lot of time missed from work, do not leave it up to the insurance companies. Instead, hire a car accident attorney. The insurance companies want you to think it’s too expensive to hire legal representation, but the truth is that most personal injury lawyers work on a contingency fee basis. This means they do not collect any money upfront and you don’t have to pay them anything until they win for you.

Insurance companies usually wind up paying double or triple the amount to those who have lawyers representing them. It pays to have expert legal representation for car accident claims. If you’ve recently been in a car accident, your best move is to contact a car accident attorney to discuss your case.