The Legal Issues of Insurance

Legal issues can arise with any type of insurance; however, in the majority of cases, the issues involve vehicle and homeowner’s insurance more than other types of insurance.

When you are involved in a vehicle accident and you were responsible, your insurance company will pay the amount that you have chosen to pay after you pay your deductible. The one thing that you must remember is that you must contact your insurance company and then they will ask you to sign a release so they can examine your medical and work records. Along with this, you will have to sign a subrogation, which actually means that if they pay you for any damages you cannot really receive any funds from a third party or you may have to pay your insurance company back the money they paid you after the accident.

In most vehicle accidents, the person who was responsible for the accident is liable for paying for repairing or replacing your vehicle along with your medical bills. On the other hand, under no-fault, your insurance company will be the one that foots the bills and your insurance premiums become higher. The real legal status has more to do with the type of vehicle insurance coverage you have such as uninsured motorist, liability, and collision.

When it comes to home insurance, if you are not covered by flooding and your home is flooded, then your insurance company is not going to pay and you will be responsible for paying for the repairs on your own. If you own a dog and you do not have insurance to cover your dog and it bites a neighbor, then you will be responsible for the damages instead of your insurance company.

It is always best, no matter what type of insurance you have, to read the entire policy so that you completely understand any ramifications that may result from certain accidents.