Colorado law requires all drivers to have at least a minimum amount of auto insurance coverage. Just because you have car insurance, however, does not necessarily mean that you will be protected in the event of a collision – or that the insurance provider will always honor your policy.
Delving into these issues a bit deeper, below, we have dispelled some common myths about auto insurance coverage.
Understanding these facts is important for all motorists because it can help them know when it’s time to contact a lawyer and take action to protect their rights to compensation following a traffic crash.
Have You Been Misled By One of These Auto Insurance Myths?
1 – My comprehensive auto insurance policy will cover me in any type of accident.
Not necessarily – and believing this misconception can cause people to not obtain the extent of the coverage they may need or that they may think they have. The fact is that “comprehensive” policies can differ between insurance providers, and they may not cover certain situations, such as hit-and-run accidents or collisions with underinsured/uninsured motorists.
So, the bottom line here is that it’s important to understand the details of “comprehensive” polices and consider getting extra coverage if these policies do not offer the full protections you want or need.
2 – If I don’t report an accident to my auto insurer, they will never find out about it, and my rates won’t increase.
This is also not necessarily true! If the accident involved even one other party or if it resulted in you getting a traffic citation from a police officer, your insurance provider may still find out about the collision – and your rates may still increase – even if you never make a move to report the crash to the provider.
This is because, following a collision, insurers can be made aware of the accident if or when:
- Any other party involved in the incident reports it to their insurer and then moves forward with a claim against you.
- Your driving record will reflect the traffic citations you receive, and insurance providers can access these records when, for instance, renewing or updating your policy.
So, don’t think that you can pull one over on your insurance provider by not reporting a collision. It won’t help you.
3 – I can rely on my insurer to honor my valid auto accident claims.
Unfortunately, this is not always true either. That’s because insurance providers can be more focused on finding ways to avoid making payouts for claims following traffic accidents than on protecting the rights and interests of their policyholders.
The reason for this is that, in general, insurers make their money by taking premiums and limiting payouts for claims. In some cases, this may mean that providers fail to fully honor policies, wrongly deny valid claims or try to undercut the payouts they do end up making.
So, the important takeaway here is that policyholders should not count on insurance companies to act fairly, honestly or even legally with their claims. Instead, policyholders should take action to protect their interests and rights to compensation following traffic accidents by retaining an experienced motor vehicle accident lawyer.
Contact a Denver Car Accident Lawyer at Cederberg Law
If you or a loved one has been injured in a car accident – or if you have lost a loved one in a motor vehicle accident, contact a Denver car accident lawyer at Cederberg Law to find out more about your best options for financial recovery.
To meet with us at no cost or obligation to you, call us at 303-499-0449 or email us using the form at the side of the screen.
In addition to offering free initial consults and contingency fee options, our lawyers make hospital visits to ensure that you have access to the legal support you need – whenever you need it.