How the insurance can protect you from a car accident

Insurance can Protect you from a Car Accident

A car accident can happen in an instant and – at best – potentially cause you some serious stress. At worst, it could change your life (or someone else’s life) forever. Insurance exists to ease the burden that can follow a serious accident, but it’s important to know how different coverage’s help you in different ways. Just getting the minimum required coverage can mean not having the proper protection in every situation you encounter whenever you get inside the car.

Below is a list of the different types of insurance – both mandatory and optional – that every vehicle owner should consider getting in order to protect them, as well as some other types of insurance to consider.

Car Insurance

There are three parts to car insurance – the first two are mandatory for every driver and the third is optional. They are:

Third Party Liability (sometimes called Part A)

This covers you if you damage someone else’s property or are responsible for another person’s injury or death. It’s one of two parts of insurance the government says you have to drive legally on the road.

Examples:

  • The other driver’s car was destroyed. It’s a complete write-off
  • The passenger in the other vehicle was injured or killed.
  • The passenger in your car was injured or killed.

Accident Benefits (Part B)

This covers everyone in your car if they are injured or killed. It’s the second part of the insurance the government says you have to drive on the road legally.

Examples:

  • You or your passenger are injured or die in the accident.
  • You and your passenger have been injured or killed by a vehicle that does not have insurance or whose owner cannot be identified.

Regardless of who was at fault in the collision, accident benefits will provide coverage for medical and funeral expenses, death or total disability benefits, and coverage for uninsured drivers. A variety of medical expenses are covered including ambulances, medicine, dentistry, chiropractic, physical therapy, psychotherapy, and massage therapy, to name a few.

collision/all-out (part c)

This covers damage to your vehicle. This coverage is theoptional, but its highly recommended.

Examples:

  • Your car is broken and will need to be replaced.
  • Your car is damaged and will need repair.
  • Collision or universal covers to replace your overall vehicle. If you also have AMA
  • Insurance’s Full Rental Protection approval, you’ll be covered in case you need a rental car to drive while you’re in the store.

Disability insurance

Disability insurance helps cover lost income if you are unable to work because of a disability.

Examples:

  • If you have injured your spinal cord and you can no longer do your job.
  • You get infected with the skin and develop painful symptoms and migraine headaches that interfere with your function.
  • You suffer permanent trauma from the collision and you have to take time off to deal with the stress.
  • Disability insurance will cover all of these scenarios. However, the AMA offers a lot of different plans that have different limits and conditions for qualifying. A counselor can help you choose what is best for you.

Personal Accident Insurance

Personal Accident Insurance (PAI) provides a lump sum to you or your beneficiary in the event of disability/loss of a party or death due to an accident.

Examples:

  • Your arm is shattered in the impact and needs amputation.
  • You have a spinal cord injury and you lose use of your legs.
  • Your spouse loses the use of his arm, leg, hearing or sight.
  • Either of you was killed in the collision.

If you are injured or killed, your PAI pays 100 percent of the benefit all at once, unlike disability insurance. Also, it doesn’t matter if you can still work after the car accident – PAI still pays.

If your spouse is injured or killed, PAI pays 50 percent of the benefit to you because you are the beneficiary of it. You will pay a one-time payment.

Long term care insurance

This is a simple and affordable way to help cover the costs of care you or your spouse may need in case of chronic illness, disability, or simply due to the natural effects of aging.

Example:

A car accident results in a serious spinal/brain injury and needs round-the-clock care, so your family helps you move to a nursing home. Long-term care insurance will help cover the cost of your care. Care homes are not covered by the county and can be expensive for your family, especially high-quality facilities.

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