Automobile accidents can be terrifying. They can be even more scary when a driver doesn’t have vehicle insurance coverage (or has insufficient cover) to pay for third party damages (when at fault) and own losses. All the states in America have at least minimum liability policy requirements before anyone can start driving. This policy protects unsuspecting citizens and road users for the damages caused by drivers.
Those citizens may be sitting in one of the cars involved in a crash. A third party car insurance policy would pay for injuries and losses suffered by the passengers in other vehicles automatically. They are covered by these policies in three ways. Any medical bills due to injuries suffered in the incident will need to be paid by responsible drivers’ insurers. This may be one company or several companies may share the costs due to shared blame.
Secondly, they can claim for loss of wages if they are not able to carry out their jobs. If they are not earning money because of someone else’s recklessness they should be compensated for the financial loss. Thirdly, they can make claims for loss or damage of personal effects they had with them during the crash. This may seem to be a negligible amount but people do have expensive phones, laptops and jewelry with them these days.
Besides, you never know who these people can be. A CEO of a large corporation can easily rack thousands of dollars bills for special medical treatments, loss of belongings and loss of wages or business deal. You really should think about increasing the minimum liability auto insurance coverage by several folds if you can afford it. It really does not cost that much extra on top of the cost of minimum cover.
On the other hand, relationship between at fault driver and the passengers in his/her car may need to be established first to determine if they are entitled to any compensation under liability coverage. Family members are not covered under the third party policies for the simple reason that they are not third parties. At fault drivers and family members need Personal Injury Protection if they want to be insured for the injuries suffered due to traffic incidents.
Motorists should check if they have insurance in place to pay for hospital bills in case of an accident suffered (should there not be a third party to blame or insurer to make a claim on). Most health insurance policies pay for such medical bills (it is best to check before buying). Nonetheless, a health cover does not pay for loss of wages.
It may be wise to take the names and conditions of everyone involved in an accident where possible. Companies deal with thousands of people injured in car collisions and some of them do fake their injuries or they were not really caused by the particular crash.
A prolonged and sizable liability claim will affect the car insurance rates you will be charged when the renewal comes. Although any information and pictures you may take will help the insurer to find an unjustified claim you should not aggravate already shaken people just so that you can note their conditions. Possibly, there will be a police report after a notable accident anyway.
Reply: It is worth pointing out that your family cannot normally make a claim on your liabilities policies. Your family is technically your liability. You will have to either have a good health insurance that will take care of them if they get injured in an auto accident or buy Personal Injury Protection for yourself and family members.