Auto Accident Attorney Insurance Claims

Question 1

What is the difference between liability coverage and uninsured motorist (UM) coverage in auto insurance?

Accepted Answer

Liability covers injuries you cause to others; UM covers your injuries when hit by an uninsured driver

Answer

Both coverages pay for your own vehicle damage

Answer

Liability coverage is optional in all states; UM is mandatory everywhere

Answer

UM coverage only applies to pedestrian accidents

Question 2

What is a 'first-party' insurance claim in an auto accident context?

Accepted Answer

A claim filed with your own insurance company

Answer

A claim filed against the at-fault driver's insurer

Answer

A lawsuit filed against the other driver directly

Answer

A claim filed by the government

Question 3

What does 'subrogation' mean in the context of auto insurance?

Accepted Answer

Your insurer's right to recover from the at-fault party after paying your claim

Answer

The process of canceling a policy after a claim

Answer

A penalty for filing too many claims

Answer

The right to sue your own insurance company

Question 4

What is 'underinsured motorist' (UIM) coverage designed to do?

Accepted Answer

Cover the gap when the at-fault driver's liability limits are insufficient for your damages

Answer

Provide coverage when you drive another person's vehicle

Answer

Pay for damage to your vehicle from weather

Answer

Cover medical costs regardless of fault

Question 5

In a 'no-fault' auto insurance state, what does this mean for accident victims?

Accepted Answer

Each driver files a claim with their own insurer regardless of fault for basic medical costs

Answer

No one can sue for auto accident injuries

Answer

Insurance companies determine fault for all accidents

Answer

Drivers are not required to carry insurance

Question 6

What is a 'reservation of rights' letter from an insurance company?

Accepted Answer

A notice that the insurer will investigate a claim while reserving the right to deny coverage later

Answer

A letter confirming full coverage for the accident

Answer

A demand for immediate payment of premiums

Answer

An offer to settle the claim