Video Transcript

Speakers: Kevin L. Edwards and Pedro “Peter” de la Cerda

Types of Insurance After a Car Accident

Kevin: When we get calls after an accident, [omitted] [people] ask, can you discuss with me or explain to me the types of insurance that may be out there following the car wreck?

Peter: Yeah, so there are several different types of insurance that are at play after a car wreck. [First,] let’s talk about [this] in the context of medical care. It may be that you go to the ER immediately after an accident because you’ve been injured significantly. And if you have health insurance — maybe it’s private health insurance, Medicare, [or] Medicaid — those types of insurance are at play to help pay for the medical part. Another type of insurance that’s at play in the circumstances too is car insurance. [Typically], when the other driver is at fault, it’s going to be the car insurance of that other driver and that car insurance is going to cover not only [omitted] your injury damages but also your property damages.

What is Uninsured/Underinsured Motorist Coverage?

Peter: Let’s say however that the other person’s car insurance — there is none; it’s completely unavailable. Well then, it could be your own car insurance that kicks in under something that’s called uninsured/underinsured motorist coverage. That type of insurance coverage is meant for the scenario where the other driver doesn’t have or lacks sufficient coverage. So that could [kick] in as well.

What is an Umbrella Coverage? 

Peter: [Let’s] say, you have been hit by someone who has a significant amount of assets. And because that person has a significant amount of assets, they also have what’s called [an] umbrella coverage. So in a very significant car wreck, you could be making a demand that not only goes through their initial car insurance coverage, but also reaches up into their umbrella insurance coverage.

So [these are some of the] types of insurance that can kick in after a car wreck. And so, it’s important to get a lawyer involved to take a look at all the avenues of insurance that [will apply] to that particular car wreck to make sure that they’re all used in the right way [and] make sure that they’re acting in the proper way, so you can get the appropriate compensation that you need [after] your car wreck.

Will My Premiums Go Up After an Accident?

Kevin: You know, Peter, you brought up UM/UIM (uninsured or underinsured motorist). A lot of people when they call us, they say, “Well, I don’t wanna go against my insurance because it’s gonna make my premiums go up.” The problem with that is you’ve been paying that premium for the uninsured motorist coverage. And so, if someone crashes into you and they do not have coverage, that is the exact thing you’ve been paying for! It’s time to use that coverage. [Also], just so you know, Texas Insurance Industry will know about the accident, whether you’re at fault or not at fault. So chances are your premiums are already going to go up [omitted] just because you were in an accident. So go ahead and use that uninsured/underinsured motorist [coverage] so that you know that you’re getting the full payment for the accident for which you were not at fault.