Will my Car Insurance Coverage Cover Medical Bill Due to an Accident
Reader’s Question:
My son was in an accident while driving my car in Minnesota. The other driver was declared to be at fault. We are from Wisconsin, and he only went there to visit an aunt. Will my car insurance policy still cover for his medical bills since Minnesota is a no-fault state and the accident happened there?
Jennifer
Milwaukee, WI
Normally when driving out of your licensing state, in this case Wisconsin, your car insurance can be expected to follow the laws of the state in which you happen to be driving in. Minnesota happens to be a no-fault state. This simply means that those involved in an accident make their claims through their own car insurance, specifically the Personal Injury Protection (PIP) policy.
If your son doesn’t have his own car insurance, you, the car owner, will have to carry the burden through your own car insurance. Following the Minnesota PIP, you son is entitled to coverage of medical costs, replacement, wage loss, and even funeral expenses up to two thousand dollars. The minimum coverage amount is forty thousand dollars. Broken down, that’s twenty thousand dollars for medical expenses and the other twenty thousand for non-medical expenses. If things happen to cost more than this PIP limit, you or your son can claim against the other motorist’s liability coverage since he or she has been declared liable.
If you need more information and advice regarding claims for out-of-state accidents, don’t hesitate to contact the Minnesota Department of Commerce, which is the agency that regulates insurance in that state. Alternatively, you can get in touch with the Wisconsin Office of the Commissioner of Insurance, the insurance regulator for your state.’
Auto Insurance Claim – Why You Need To Report Accidents
Reader’s Question:
I’m from Milwaukee, WI. I got hit recently by another driver who was clearly at fault. He offered me to pay in cash for the damages rather than make a claim on his car insurance; is that okay?
Karen
Milwaukee, WI
It’s a bad idea to accept cash if you’re injured or if you even have a hint of being injured. Your PIP coverage should pay for your medical expenses and any lost wages that you may incur if you’re injured. Once your PIP is consumed, your health insurance will kick in and pay for the rest of your expenses. You can sue the at-fault driver to pay for your medical bills, pain and suffering, and any lost wages as a result of the crash if you do not have PIP or health insurance.
On the other hand, never take money on the spot if you choose to accept the other driver’s cash offer for the physical damage to your car. Be sure to know exactly how much it will cost to repair your vehicle. You could end up paying for a portion of the repairs yourself if you don’t get an accurate estimate, Say for example, the other driver offers you $1,000 to pay for damages and you later receive an estimate showing that the total cost is $1,500 to repair your car, you may have to kick in $500 of your own pocket.
It is also important for you to carefully examine any documents you may be required to sign that absolve the other driver of any further liability. If the at-fault’s party has consulted an attorney, it is likely that the attorney has drafted a document that will take away your right to sue later. If you are in doubt about signing the document, consult an attorney. Hiring a lawyer is an unavoidable expense that you’ll have to pay for. Always check your policy language for details so it’s advised to contact your Milwaukee, WI insurance agent to have a statute of limitations for reporting accidents.
Will Car Insurance Pay Additional Cost for Repair
Reader’s Question:
If the estimate to repair a car is more than the automobile is worth, will car insurance pay the additional cost to repair? I live in Appleton, Wisconsin. What is the actual insurance requirement?
Carol
Appleton, WI
Normally an Appleton, Wisconsin insurance carrier will not pay more than a vehicle is worth to repair it. As a matter of fact, many times if the cost to repair the vehicle is anywhere from 75 -100% of the value of the car an insurance provider will not pay for repairs but instead total out the car and pay the policyholder actual cash value (ACV) for the automobile.
When a vehicle’s damage reach, and especially they exceed, the value of the vehicle it is not economical for an insurance carrier to repair the vehicle instead of settlement with the owner for the actual cash value or fair market value of the automobile. Repairs, towing, storage costs, rental reimbursement costs are all taken into consideration by an insurance carrier when determining if a vehicle should be totaled out or not.
If the cost of damages is nearly the actual cash value of the vehicle and there are other expenses such as towing and storage of the car that are also costly then many times the vehicle will be declared a total loss even if the damages alone are not as costly as the the value of the vehicle but with the extras it makes more economical sense to total out the car and sell it for salvage.
Will my Car Insurance Pay for Damages if I’m Driving Outside my Restriction?
Reader’s Question:
I was driving in Green Bay Wisconsin WI on a restricted driver’s license by DUI. I was driving outside my restrictions. I crashed my car due to a road hazard so will my insurance pay for damages even though I was not driving to/from work as mandates by my restricted license provisions?
Sarrah
Green Bay, WI
The insurance company’s provisions and/or exclusions will determine if this is covered under your policy. Exclusions on a Personal Auto Policy can be different for every carries and state, so you better review your policy:
Some typical exclusion follows:
-committing a high misdemeanor or felony, or seeking to avoid lawful apprehension or arrest by a police officer; or
-acting with specific intent to cause injury or damage to himself or others;
-operating or “occupying” an “auto” without the permission of the owner of the “auto” or name insured under the policy insuring that “auto”.
-War (declared or undeclared);
-Civil war;
-Insurrection;
-Rebellion or revolution;
-Any act or condition incident to any of the above resulting from radioactive, toxic, explosive, or other hazardous properties of nuclear material.
-and other specified on each policy…
Based on the typical exclusions listed, it seems like you will have coverage afforded unless there are other exclusions listed on your policy.
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