Why You Should Use Your Insurance Benefits After an At-Fault Accident

Your auto insurance can help you pay for vehicular repairs and medical treatment after an auto accident; even an at-fault accident. However, a lot of people do not utilize their insurance benefits after an accident, fearing the potential consequences. However, there are several reasons why you should use your insurance benefits, even if you are at-fault.

You Have Already Paid For Your Insurance Benefits

Your auto insurance can be a significant resource in your recovery after an auto accident; especially when you utilize the services you have already paid for. When you purchase auto insurance, you enter into a contractual agreement with your insurance company; you pay a monthly insurance premium in exchange for financial protection. In paying your monthly premiums, you have already paid for the benefits necessary to cover an at-fault claim. 

Note that this will depend on the policies you have purchased. If you only carry liability insurance, your insurance will not cover you after an at-fault accident. However, if you have collision coverage and comprehensive coverage, you can submit a claim and receive compensation for vehicular damages, and medical treatment up to the limits of your policy. 

Your Insurance Premium(s) Will Rise Even if You Don’t Use Your Benefits

After filing an at-fault claim, your insurance company will re-evaluate the financial risk you pose to their company. At-fault claims generally result in a higher risk calculation. If your premium rises after an accident, it will be in proportion to your calculated risk; regardless of whether or not you use your insurance benefits.

Your Health Insurance Will Request Compensation After a Car Accident

After an auto accident, if you use your health insurance to pay for medical treatment, they will request compensation from your auto insurance company. However, in using your health insurance, you will have to pay any deductibles or copays associated with your policy. 

If your health insurance discovers that your medical visits resulted from an auto accident, they will request compensation from your car insurance provider. In this scenario, you likely will not get refunded on any deductible or copay payments you may have made.

It is Unlikely that Your Auto Policy Will Be Dropped

After your first at-fault accident it is unlikely that your auto insurance company will drop your insurance coverage; as some insurance companies offer accident forgiveness. Generally, insurance companies only drop policies after three at-fault claims filed within a three-year period. Therefore, your auto insurance provider is more likely to increase your insurance premium rather than drop your policy.

If your auto insurance drops your policy, they must give you a written cancelation notice. Upon receiving this letter, you will have at least 30-days to find another insurance provider. In this case, you may find a policy cheaper than your previous plan, and may also avoid a premium increase. 

In Conclusion

After an at-fault claim, you will generally face the same consequences, regardless of whether you utilize your insurance benefits; even up to your policy limits. Deciding to pursue your auto insurance for financial coverage will save you money in the long run; preventing you from paying co-pays and deductibles associated with health insurance policies.

Were you or someone you know involved in a recent auto accident? Call Auto Accident Care Network now at 801-683-1948 to connect with a live care advocate. Our team at AACN can connect you to trusted attorneys and doctors to schedule a free legal consultation, a free thirty-minute massage, and a no-cost medical exam!

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