Knowing your insurance policy is really the best way to avoid getting taken advantage of by your insurers. Houston accident attorney Steve Lee is dedicated to making sure that his clients are treated fairly by insurance companies.
 

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An Insurance Policy Primer

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Houston Injury Attorney Steve Lee has been providing legal counsel to injured Houston citizens for three decades. Since much of his practice involves helping his clients get through the practices of insurance companies, he has a very clear picture of how insurers operate, and knows the steps that they take to maximize their profits at the expense of their customers.


Have you ever wondered why insurance policies are dozens of pages long? Have you ever wondered why the language is so dense and the jargon so incomprehensible? The answer is simple. Insurance companies want you completely bamboozled when it comes time to file a claim. They are banking on what you don’t know, understand or have the patience to sort through.

By claiming that you aren’t covered on something when you actually are, or claiming that some damage is supposed to fall under your deductible when in fact it isn’t, they are betting that you either don’t have your policy on hand or won’t be able to understand the legal jargon when you do start reading it. By boldly claiming that something isn’t their problem when it actually is, they are able to make millions of extra dollars

Having a thorough understanding of what sort of coverage you are receiving can help you get exactly what you are supposed to when you have to file a claim. It’s much harder for an insurer to just say no when you have the paperwork right in front of you. With that in mind, here is a glossary of terms that are often used in insurance contracts.

Bodily Injury and Liability Insurance
This insurance protects you from claims made against you which you are obligated to pay if you cause bodily injury to someone in a crash. This also covers your defense costs. Bodily Injury Liability limits usually specify two separate dollar amounts. The first amount limits payments to a single person per accident, while the second amount puts a cap on the total amount of payment for all persons injured per accident.

Collision Insurance
Collision coverage pays for the damage to your vehicle by collision with another vehicle or fixed objects like trees, signs, buildings, etc. This coverage is what gets invoked when the accident is your fault.

Comprehensive Coverage Insurance
This is your "fire and theft coverage, and covers damage to your car for anything other than a wreck, like tornados, floods, vandalism, theft, hitting a deer, etc. You should bear in mind that floods can be very tricky affairs with insurance companies. Major insurers issued near blanket denials for cars that were damaged during Hurricane Katrina.


Car Rental
If your vehicle is in the shop for more than a day for repairs resulting from an insurance claim, Many policies with this coverage will pay $15 or more per day for usually up to 30 days, or some maximum value to rent a car while you wait for repairs. Higher limits are available.

Full Glass
In many states, there is no deductible on windshields, because it's against state law to drive with a damaged windshield. But for the rest of your windows, you still have to pay your comprehensive deductible before they'll pay for any broken glass. You can pay more for Full Glass coverage to eliminate any deductibles for broken glass. Some companies give you full glass at no extra charge as a selling feature.

Medical Coverage
This covers medical expenses from your crash injuries and covered persons in your car, no matter who was at fault.

No-Fault, Personal Injury Protection (PIP)
In most no-fault states, PIP covers medical and rehab, work loss, funerals, and other expenses incurred by you, your family, passengers in your vehicle, and pedestrians injured by your vehicle. Not every state has this coverage, and it pays for damages regardless of who is at fault in the accident. That's why they call it no-fault.

Liability Coverage
This coverage is similar to Bodily Injury coverage. Liability covers only the damage caused by you to someone's property, car, fence, lawn, telephone pole, house, etc. When you are at fault in a wreck, this coverage is invoked when the other driver makes a claim against your insurance to repair their car. Any car repairs needed by you will not be paid for.

Towing
If your car breaks down, this coverage will pay for a tow truck or roadside assistance to get your car going again. This usually pays about $50-$75.

Underinsured or Uninsured Motorist
Underinsured Motorist pays for your injuries up to the policy limit when the other driver either has no insurance, or their insufficient coverage can't pay for your injuries or property damage. This coverage usually includes hit and run drivers as well.

It is important to understand what all this coverage means, and it is also important to understand that the insurers will, in all probability, attempt to deny, bamboozle, or bargain their way out of paying what they should. This is why it is important to consult with an attorney if you are involved in a serious accident. An injury victim armed with the facts and experienced legal counsel can make very short work of insurance companies’ attempts at avoiding their financial responsibilities. If you or a loved one in the Houston Area has been in a car accident, contact attorney Steve Lee for a free legal consultation.

©2008 Steven M. Lee, PC, All Rights Reserved, Reproduced with Permission
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