Understanding Why Some Auto Insurance Policies May Not Cover No-Fault Fatalities

 Posted on December 00,0000 in Wrongful Death

Winter storm Goliath spread through Illinois and the rest of the Midwest, leaving icy, snowy conditions in its wake. Hundreds of crashes were reported throughout various parts of the country, and at least 19 were killed. Sadly, some of those fatalities may not be covered under the driver’s auto insurance policy. Confused? You are not alone; most people are under the misconception that their policy automatically covers no-fault fatalities when, in fact, very few actually do. Gaps in Collision and Comprehensive Insurance Comprehensive and collision coverage are the most common forms of auto insurance carried by drivers. Collision will pay for damages to your vehicle if it is involved in an accident with another driver or another object. Comprehensive coverage protects you against loss from other forms of damage, such as natural disasters, theft, or vandalism. Neither pays for medical costs, but most states have a minimum amount of medical coverage that you must carry. Unfortunately, even with all of this coverage, there are some surprising gaps in your auto insurance policy. Death Benefits Separate from Medical Payments Coverage Death benefits, which cover accidental death during an accident (including no-fault accidents) are separate from your medical payments coverage. This type of coverage is also an optional add-on, which means not all drivers actually carry it. Some may be unaware it even exists, let alone understand just how necessary it is to carry this added form of coverage. How Auto Policy Death Benefits Work Covered under the optional personal injury protection (PIP) available to vehicle owners, death benefits are paid to surviving beneficiaries. Expenses that may be covered include accidental death benefits, continuation of lost earnings, periodic “pension” payments, or replacement service payments. However, there are some exclusions to this type of coverage, including:

• Death must occur within the specified time frame after an accident, and it must not be related to work or an illness or infection unrelated to the accident itself (note that the insurer may require an autopsy to determine cause of death);
• Benefits are not extended to those not considered insured under the policy (typically anyone other than the policy holder, spouse, and their dependents);
• And deaths that are related to suicide, war, accidents with trains or farm vehicles on non-public roads, or accidents cause during a race.

Have Coverage but Denied Compensation? Seek Assistance from a Skilled Personal Injury Attorney

Ideally, the best time to seek assistance from a personal injury attorney is immediately after an accident occurs. If, however, you have already filed a claim and were denied compensation, a personal injury attorney may be able to help you appeal the decision. Salvi & Maher, LLP, has been helping accident victims and survivors seek compensation for more than 20 years. Schedule your free initial consultation with a skilled Lake County automobile accident attorney by calling 847-662-3303 today.

Sources:

http://www.weather.com/news/weather/news/winter-storm-goliath-impacts-southern-plains-midwest

http://www.dmv.org/insurance/fault-and-no-fault-insurance.php