Auto Accident Attorney Insurance Claims 1

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

Liability coverage protects you from claims by others you injure, while UM coverage protects you when the at-fault driver lacks insurance.

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

First-party claims are filed with your own insurer under coverages like collision, MedPay, or UM/UIM.

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

Subrogation allows your insurance company to step into your shoes and seek reimbursement from the at-fault party after paying your claim.

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

UIM coverage pays the difference between your damages and the at-fault driver's policy limits when those limits are inadequate.

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-fault states require each driver to use their own Personal Injury Protection (PIP) coverage for medical expenses regardless of who caused the accident.

Auto Accident Attorney Practice Test

Auto Accident Attorney Practice Test

Auto Accident Attorney Insurance Claims 1