About 25 percent of the states in the US maintain fault-based car-insurance policy schemes. In this setup, the insurance coverage of the individual found to be at fault for the vehicular accident will be used to pay for damages of the other driver involved in the accident but was proven to be blameless.
If you are currently shopping for the best car insurance plans, you might notice the varying requirements of each state. A lot of the states call for minimum car insurance, at the very least, for someone to drive or register a vehicle.
A car-insurance plan is a contract signed by an individual and an insurer. The insurance provider agrees to insure a person for coverage and liability limits contained in the policy. The policy holder, on the other hand, agrees to deliver premium payments regularly in exchange for the company’s coverage. That is how the contract works in a nutshell. Pretty simple, but you have to wonder why a standard policy is 30 pages long.
Usually, a policy plan’s first page tells the policyholder that should he be involved in an automobile accident, he should quickly dispatch a notice to his insurer the facts of the case. The facts include the time and place of the accident, circumstances surrounding the mishap, names and addresses of the persons injured and witnesses, etc., regardless of whose fault it was.
The insurance company is telling the insured person what his duties are. The notification usually becomes a sticking point with the insurer. The insurer could accuse the insured person of not being prompt enough in sending notice.
Should the insured person make a claim for a coverage contained in his insurance plan, he has other duties like fully cooperating and helping the insurance firm with the claim. He should also send to his insurer copies of all legal documents he got in relation with his claim. He must undergo a physical checkup with a doctor chosen by the insurer at the firm’s expense if the insured person has been injured. If the insurance company wants to get the policy holder’s medical and other records, he is obliged to grant his complete permission.