Different Types of Insurance Coverage

Different Types of Insurance Coverage

Many times clients will call our office and ask questions about the different types of insurance coverage available after they are involved in a motor vehicle accident. While most injured victims are aware of the other driver’s liability coverage, they often overlook coverage available on their own policy which could provide additional compensation after an accident.

Two of the most common forms of additional coverage are “Personal Injury Protection” (PIP) and “Uninsured/Under-Insured Motorist Coverage” (UM).

Both PIP and UM are optional coverages. That means you are not required to purchase them on your insurance policy. However, Texas law does require your insurer to offer them both to you when you purchase your policy.

If you choose to decline PIP and UM, your insurance carrier must obtain written confirmation of your denial. If your insurance company fails to confirm your PIP and UM rejection in writing, you are deemed to have the coverage. This means that even if you have not explicitly asked for PIP and UM and paid for the coverage, you still may be covered if you never signed a rejection.

Personal Injury Protection (PIP)

Personal Injury Protection, or PIP, pays for your reasonable and necessary medical expenses after a car accident. You can recover PIP if you were at fault in an accident. It can also cover up to 80% of lost wages for work you were forced to miss as a result of an accident.

Uninsured/Under-Insured Motorist Coverage (UM)

Uninsured/Under-insured motorist coverage, or UM, is a form of insurance coverage that protects an injured party involved in an accident in the event that the driver that caused the accident is either uninsured or under-insured.

For example, if you are involved in a car accident with a negligent driver and that driver does not have liability insurance, you may be able to make a claim on your own insurance policy if you have UM protection.

Similarly, if a negligent driver injures you in a car accident and their liability insurance policy does not fully cover your damages, you may make an additional claim with your insurance carrier on the applicable UM policy.

If you have been injured in a car accident and have questions about what coverages apply, call Funk & Associates today.