| An auto liability claim occurs when you cause | | | | Clear fault liability claims are not much of an issue. If |
| damages or injuries to a third person. Every state in | | | | you were at fault, then your insurance company will |
| the United States requires you to carry insurance. | | | | pay for all damages and injuries either to the |
| The insurance that is required by law is liability | | | | responsible party or her insurance company. Equally, if |
| insurance (some states require Uninsured /Under | | | | you were not at fault, then her insurance company |
| Insured Motorist Damage, Uninsured/Under Insured | | | | will pay your damages directly. You insurance |
| Bodily Injury, and Personal Injury Protection). Liability | | | | company will not pay you anything since you did not |
| coverage is the "bear bones" coverage. If you carry | | | | have first party coverage (Collision). |
| an auto insurance policy, then you have coverage for | | | | A dispute auto liability claim can become quite |
| an auto liability claim. Note: If you have a car loan, | | | | cumbersome. If there is split fault, then your |
| then you are required to carry collision and | | | | insurance company and the other carrier must "sit |
| comprehensive. | | | | down" and argue liability and damages. The adjusters |
| The liability coverage will only cover someone else's | | | | will attempt to reach an agreement as to the |
| vehicle; you will have to pay for damages to your | | | | percentages of fault of each driver. If they agree, |
| own car. If the accident was not your fault, then you | | | | then they would pay each other the amount of their |
| have to make an auto liability claim against the | | | | corresponding damages. If you did not carry collision, |
| person that hit you. If that person does not have | | | | then you have to call the carrier of the other person |
| insurance, then you will have to fix your own car and | | | | and ask for at least that percentage of your |
| try to collect against that person directly. This is the | | | | damages. They will pay you directly. If you do carry |
| reason why you need to Uninsured/Under Insured | | | | collision, then the insurance companies will exchange |
| Motorist Damage. | | | | payments and then your company will send you your |
| Liability coverage is a fault base coverage. This | | | | deductible back (if your company had already pay |
| means that for this coverage to be triggered, the | | | | your damages and/or medical bills). |
| driver carries the insurance liability coverage must be | | | | If the adjusters cannot agree about who is at fault, |
| at fault at least partially (some states requires at | | | | then insurance companies will go to arbitration. An |
| least 50%, some only require 1% fault). Here is | | | | impartial arbitrator will review both adjusters' files and |
| where insurance adjuster will take their time | | | | then make a binding decision. Arbitration decisions are |
| investigating who was at fault and how much. There | | | | final and insurance companies must follow them. |
| are cases where fault is clear (rear end accidents). | | | | Insurance companies cannot appeal arbitration |
| However, there are other accidents where there is a | | | | decisions. |
| clear dispute of facts (red - green light dispute). The | | | | You are still bound by your policy liability limits. The |
| claim adjuster must determine who is at fault. If you | | | | damages that you caused must be below those limits |
| are in a situation where you are being accused even | | | | for the insurance company to protect you 100%. |
| for 1% fault, then you want to have your own | | | | The insurance company is required by law if they |
| insurance carrier protect you from the auto liability | | | | believe there is a risk that the damages will exceed |
| claim the other insurance company will make against | | | | your limits. |
| you. | | | | |