If you only have liability insurance and were hit by another car, the at-fault driver's liability insurance will pay for your injuries or property damage. If the other driver has no insurance, you can file a claim with your own uninsured motorist coverage, if you have it.
Your liability insurance will not apply when you are hit by another car because it only pays for other drivers’ medical bills and vehicle repairs when you are at fault. Consequently, if you have liability-only insurance, you will need to pay out of pocket for your own bills if you cause an accident. But if another driver is at fault, their liability coverage will pay for the damage they cause to you and your property, up to their policy limits.
If your car is totaled and you only have liability insurance, you will have to pay to replace the vehicle yourself or file a claim with the other driver’s insurance company. Liability coverage alone does not protect your car in any way, just injuries and damage you may cause to others. You need to have … read full answercollision, comprehensive, or new car replacement coverage if you want your insurance company to pay to replace a totaled car. However, if your vehicle is damaged or totaled in an accident that isn’t your fault, you should make a claim on the at-fault party’s property damage liability policy to get your car repaired or replaced.
Only Having Liability Insurance Will Not Cover:
Damage to your vehicle from an accident.
Damage to your vehicle from fire, hail, flooding, fallen trees/limbs, or animal strikes.
Injuries you or your passengers incur.
Theft or vandalism of your vehicle.
On the other hand, collision coverage would help if you cause a run-in with another vehicle or object that totals your car. Comprehensive coverage would apply to damage caused by a fire, storm, or animal encounter, as well as if your car is stolen. Finally, new car replacement coverage would let you recover the full value of a newly purchased vehicle that gets totaled.
If a car accident is not your fault, your insurance rate could still go up, depending on your state and insurance company. On average, a not-at-fault accident makes insurance costs go up by about 12%, compared to 45% for an at-fault accident.
Insurance rates can go up after a not-at-fault accident because statistics show that having any accident on your driving record makes you more likely to file a claim in the future. And in some situations, not-at-fault accidents can still cost insurers money. … read full answer
California and Oklahoma are the only two states that prohibit insurance companies from raising rates after not-at-fault accidents. In states where it is allowed, the exact amount that your premium will go up depends on your insurance company. As of 2017, for example, Progressive increased premiums by an average of 16.6% after a not-at-fault accident, while Allstate only increased rates by 4.8% And drivers with State Farm didn’t see their rates go up at all.
Situations Where Your Insurance Company Has to Pay
In most cases, your insurance company won’t have to pay for a not-at-fault accident since the other driver’s policy will cover your expenses. But if you’re hit by an uninsured motorist or you’re the victim of a hit-and-run, your policy might cover the damages depending on what types of coverage you have. Liability insurance alone wouldn’t cover your expenses, but other types including collision and uninsured/underinsured motorist would. And if you live in a no-fault state, your insurance company will have to pay for your medical expenses regardless of who caused the accident. As a result, any cost to your insurer will be taken into consideration when your insurer is re-evaluating your premium.
Although it’s frustrating to be charged for an accident that wasn’t your fault, the effects on your premium will only be temporary. Accidents usually only stay on your driving record for three years, so if you continue to practice safe driving habits during that time, your rates will eventually go back down.
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