How does auto insurance work in case of accidents?

auto insurance

Auto insurance is basically a policy that provides protection against damage to third parties, car theft, or medical expenses. The coverage depends on the needs that you consider relevant for both you and your vehicle. Below at Insurance, we tell you more details about how car insurance works. 

Before hiring your car insurance, it is important that you investigate several insurers and make comparisons, so you will have more clarity about which policy fits what you are looking for. It is important that you know that once you take out insurance for your car, there are two agreements that are key: 

  1. You as the insured will pay a monthly or annual amount.
  2. The insurance company will cover the total or partial cost caused by an incident in which your vehicle is involved. 

What does auto insurance cover? 

Collision and comprehensive coverage: if the insurance is for collision, it will cover damage caused to your vehicle during an accident; If it is comprehensive coverage, then your car is insured against all other damage caused by events such as theft, fire, flood, or vandalism. 

Civil responsibility: in this case the insurance pays for injuries caused to other people and damages caused to the property of other people when it was you who caused the accident. It is important that you know that your auto insurance policy will protect you against lawsuits. 

Personal Injury Protection: In Florida cities like Miami, Tampa, and Orlando it is a requirement to have Personal Injury Protection coverage, also known as No-Fault or PIP coverage. This coverage pays for medical and rehabilitation expenses, replacement services, and funeral expenses. It also provides you with coverage in case you lose income if you are injured in the accident and cannot work. 

Medical payments: The policy will cover up to a limit the medical expenses for both you and the passengers who were in the vehicle and who were injured during a car accident, regardless of who was at fault. 

Mechanical service: in the event that your car becomes immobilized on any road and you cannot move forward, you can contact the insurance assistance so that they can send mechanical help to the place where you are. 

Tow truck: if your vehicle is totally immobilized and there is no way to move it from where it is, the car insurance offers a tow truck service to take the vehicle to the place where it will be repaired. 

Car replacement: in the event that you cannot use your car due to an unforeseen event or accident, the insurance company can provide you with a replacement car so that you can move around without problems. 

Auto insurance is a contract (also known as a policy) between a car owner and an insurance company. Two key agreements are established in this contract:

  1. That the insurance company will cover the total or partial cost caused by an incident in which the insured vehicle is involved.
  2. That the insured will pay a monthly or annual amount (also known as a premium)

How does auto insurance work in case of accidents?

In the event that you suffer a traffic accident, it is important that you know when you must present the certificate to the Police in order to collect the insurance since 2016 there were modifications to the Law. In our article Constance in the Carabineros: when should I present it? We review in detail the modifications and what to do if you have a Smart Deductible. But in general, you should proceed like this:

  1. If people are injured or seriously injured in a traffic accident, you must present the certificate to the Carabineros. In those cases, the insurer will demand the police certificate so that you can make your car insurance effective.
  2. The certificate must also be presented when any of the drivers involved are committing an illegal act such as driving while intoxicated, being a minor, not having a driver’s license, among others. This will help make the insurance effective with your company.

For these cases, you will have to go to the nearest police station and from the same commune in which the accident occurred to start the step-by-step process and be able to have insurance coverage for your vehicle.

When NOT to present the certificate?

When the crash has not presented injuries and/or the drivers are not in any illegality such as being a minor or being intoxicated. In this case, the insurer will not require you to have proof in Police if you want to use Civil Liability coverage to pay material damage caused to third parties and/or material damage coverage for repairs to your car.

To make your Auto Insurance effective, you will have to communicate directly with the insurer and through a simple affidavit communicate the events.

How many days do I have to report the claim?

According to the SVS website, the complaint must be filed with the insurance company “within the term established in the policy, which is generally 10 days. The insured must not assume responsibilities with the affected third parties or carry out transactions or agreements without the knowledge of the insurance company.

The main car insurance coverages are:

Civil liability:  This coverage covers the cost of damages and injuries caused to third parties, according to the amount indicated by the company.

Smart deductible:  When there is a third party clearly identified as guilty, the deductible with which the insurance was contracted will not apply.

Criminal defense and posting of bail:  This insurance coverage covers lawyers’ and solicitors’ fees, court costs, and the amount of the bail for any accident.

Theft, theft, or unauthorized use:  Covers the theft of the vehicle or the damage caused to it during an attempted theft.

Before hiring insurance you should check with the insurance company if it has these coverages.

Auto Insurance Assistance

Many times it happens that our car does not start or remains on the road. These types of events are what are called insurance assistance, where the company helps the insured by sending help.

The main benefits of auto insurance are:

Light mechanic service: In cases where the car is immobilized on the road and cannot continue moving forward, the auto insurance assistance sends mechanical help to the place where you were stopped.

Crane:  If this happens to you in the afternoon or at night, you will save two crane movements: moving the place to your home and the next day from your home to the workshop. On average it could be almost $60,000 that you could save if you have your insurance contracted.

Auto Replacement:  This assistance is very good in case you cannot use your car due to an unforeseen event or accident. The typical rear-end collision does not leave your car unusable but forces you to send it to the garage to have the dent removed. In those cases, the company provides you with a replacement car so you don’t end up on foot.

By aamritri

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