Tom McCutcheon – Attorney at Law
Because Joel and I have developed a personal injury practice that consists almost exclusively of suing insurance companies for personal injury, we often are asked questions about different types of insurance coverages.
We find that most people are unsure of what their car insurance covers and what triggers that coverage. The following is a list of common coverages with an explanation as to how those coverages generally apply.
Liability coverage is coverage for another person or automobile damaged as a result of your carelessness. Liability coverage is purchased for a specific car and that coverage generally follows that car. It is mandatory in Alabama.
Collision coverage is insurance to repair your car if you collide with another object whether or not it is your fault. Often our clients will have collision coverage and a car damaged through someone else’s carelessness and if that person has no insurance, or their insurance disputes or “investigates”, then your collision will pay to have your car repaired.
Comprehensive coverage is similar to collision and covers your car in the event of fire, theft, glass breakage regardless of fault.
Uninsured motorist coverage follows both the car and the driver for personal injury. In other words, if an uninsured driver injures you or someone in your car and you have uninsured motorist coverage then that coverage would pay for your medical bills, pain and suffering, loss of wages, etc. If you are in someone’s else’s car and they have uninsured motorist coverage and you are injured by an uninsured driver then you are covered from the car you are in and if you and your spouse have two cars at home, then you have two more uninsured motorist coverages available to you depending on the severity of the injuries, for a total of three policies, usually for $20,000 each.
Medical payment coverage is coverage for your medical bills arising out of the use of the insured automobile without regard to fault for the occupants of the insured vehicle. Medical payment coverage is typically purchased in increments of $1,000; $5,000 and $10,000. I think medical payment coverage was originally designed to pay health insurance deductibles and out of pocket expenses, however, hospitals now want to know not only who your health insurance coverage is with, they now want to know who your automobile insurance is with. They will bleed this coverage dry. If you have health insurance coverage, don’t tell the hospital who your car insurance is with so you can use your medical payment coverage for deductibles and other out of pocket expenses.
Buckle up and drive safely.
McCutcheon & Hamner, P.C.
2210 Helton Drive
Florence, Alabama 35630
Telephone: 256-764-0112
Facsimile: 256-764-1124
