Reporting an Insurance Claim
Regardless of how safe of a driver you are or the strength of your defensive driving skills, car accidents and injuries can still occur. It is bad enough when they happen locally, while you are headed to work or when out running your usual errands. When they occur away from home and in another state, it can create major headaches in terms of dealing with insurance companies. Dealing with different insurance guidelines and various state requirements is one of the three main issues regarding out-of-state accidents, which can prevent you from getting the compensation you are entitled to in your claim.
Dealing with Out-of-State Auto Insurance Companies
One of the important details you will need to attend to after your car accident is notifying your insurance company. According to Safe Auto, most policies will cover you in the event of an out-of-state collision. Automobile insurers are accustomed to dealing with these types of claims and with other companies, and will generally know the proper procedures that must be followed. However, it is important for you to be aware of factors that could jeopardize your rights to compensation in your claim.
One area of concern is in dealing with the compulsory insurance requirements for the state in which your car accident occurred. The Insurance Information Institute (III) advises that while insurance is mandatory to operate a motor vehicle in virtually all of the 50 states, there are some exceptions. For example, New Hampshire does not have a compulsory motor vehicle insurance law, but it does require drivers to demonstrate that they have enough funds on hand to cover a car accident for which they are to blame.
State Mandated Minimum Car Insurance Liability Coverage
Aside from basic car insurance requirements, one of the most significant differences in dealing with motor vehicle insurance companies and drivers from other states is in the amount and type of coverage drivers are required to carry. The Nevada Department of Motor Vehiclesadvises that, effective July 1, 2018, all drivers in the state are required to follow the 25/50/20 rule:
- A minimum of $25,000 in bodily injury coverage;
- $50,000 for bodily injury or death of two or more people;
- $20,000 for injury or destruction of property belonging to others.
These figures apply only to drivers in Nevada, and charts offered by the III regarding automobile financial responsibility laws show other states vary widely. For example, our neighbors in California are required to carry a 15/30/5 distribution, while Arizona’s mandatory minimum is set at 15/30/10. These state minimum amounts would limit the overall amount you would be entitled to in a car accident insurance claim.
Each state also differs in terms of the approach motor vehicle insurers take in holding other drivers accountable for car accident damages. As such, drivers are encouraged to understand the difference between fault and no fault insurance states, and how this could impact your rights in filing an injury lawsuit.