[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.lawtoncates.com\/blog\/automobile-insurance-basics\/#BlogPosting","mainEntityOfPage":"https:\/\/www.lawtoncates.com\/blog\/automobile-insurance-basics\/","headline":"Automobile Insurance Basics","name":"Automobile Insurance Basics","description":"If you own a car, you need to know some basic insurance information to protect you and your family.\u00a0There are a number of coverages available, and insurance companies exclude coverage for many different circumstances.\u00a0This article will cover some of these basics.\u00a0 However, different companies have different forms, and you should not use the information in […]","datePublished":"2018-11-08","dateModified":"2025-10-07","author":{"@type":"Person","@id":"https:\/\/www.lawtoncates.com\/blog\/author\/dixon\/#Person","name":"Dixon Gahnz","url":"https:\/\/www.lawtoncates.com\/blog\/author\/dixon\/","identifier":26,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/fe5d331604ae719d09103038ed127a45f66eebe73cf1f50b386e16cfa6089230?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/fe5d331604ae719d09103038ed127a45f66eebe73cf1f50b386e16cfa6089230?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"LawtonCates, S.C.","logo":{"@type":"ImageObject","@id":"https:\/\/www.lawtoncates.com\/wp-content\/uploads\/2024\/03\/lawtoncates-logo.png","url":"https:\/\/www.lawtoncates.com\/wp-content\/uploads\/2024\/03\/lawtoncates-logo.png","width":438,"height":73}},"image":{"@type":"ImageObject","@id":"https:\/\/www.lawtoncates.com\/wp-content\/uploads\/2024\/04\/lawton-cates-attorneys.jpg","url":"https:\/\/www.lawtoncates.com\/wp-content\/uploads\/2024\/04\/lawton-cates-attorneys.jpg","width":694,"height":550},"url":"https:\/\/www.lawtoncates.com\/blog\/automobile-insurance-basics\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU","name":"What Insurers Don\u2019t Want You to Know After an Accident","description":"Insurance companies often prioritize their bottom line, but you deserve what's fair after an accident. This video uncovers the secrets insurers may keep from victims, helping you understand your rights and protect your claim. Empower yourself with the must-know information they\u2019d rather you didn\u2019t have. Click to watch and take charge of your case!","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/U-Apywm7PMU\/default.jpg","https:\/\/i.ytimg.com\/vi\/U-Apywm7PMU\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/U-Apywm7PMU\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/U-Apywm7PMU\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/U-Apywm7PMU\/maxresdefault.jpg"],"uploadDate":"2025-02-27T07:36:18+00:00","duration":"PT46S","embedUrl":"https:\/\/www.youtube.com\/embed\/U-Apywm7PMU","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCf7ismQHST-VKSCvsz2w3SA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCf7ismQHST-VKSCvsz2w3SA","name":"Lawton & Cates","description":"Excellence in Litigation - Madison Personal Injury Lawyers - Attorneys at Law\n\nWhen you need an attorney, trust the voice of experience.\n\nFor over 60 years, Lawton & Cates has represented workers, the injured, consumers and small businesses. Our experienced lawyers are qualified to handle many types of legal disputes, including personal injury, workers compensation, business and general litigation and criminal defense cases.  We also have a team of skilled family law attorneys who represent people for divorce, custody, placement, child support, adoption, surrogacy and grandparents rights matters.\n\nOur attorneys have achieved national and local recognition. Lawton & Cates is listed in the Bar Register of Preeminent Lawyers for personal injury, labor and employment law, civil and criminal trial practice and construction law.","logo":{"url":"https:\/\/yt3.ggpht.com\/cYGQekN6J_ASb8P_Eav46kvAcB34RBZphxQyUK5OzUsK8exI2GRBQKkcTQUUWv8qXCBoPJfy7zU=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":542}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=U-Apywm7PMU#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":9}]},"about":["Accidents and Personal Injury"],"wordCount":857,"articleBody":"If you own a car, you need to know some basic insurance information to protect you and your family.\u00a0There are a number of coverages available, and insurance companies exclude coverage for many different circumstances.\u00a0This article will cover some of these basics.\u00a0 However, different companies have different forms, and you should not use the information in this article as a substitute for actually reading your policy.Liability Coverage.\u00a0This is insurance that pays if you cause an accident by negligent use of an automobile.\u00a0For instance, if you rear-end someone at a stoplight, you are negligently operating your motor vehicle.\u00a0The insurance company will pay up to the limits of this coverage and will generally provide a defense if you are sued, meaning that the insurance company will pay for a lawyer to represent you.\u00a0There are two types of limits, single and split.\u00a0A single limit policy pays out up to the limits regardless of the number of people injured.\u00a0A split limit policy divides coverage between people and accidents.\u00a0As an example, a split limit policy with 50\/100 coverage will pay one person up to $50,000 for their injuries but no more than $100,000 total\u00a0 no matter how many people got hurt.If you cause an accident where the damages are greater than the limits of your liability policy, the injured people can go after your assets to satisfy a judgment. You should review your limits to see if you have adequate coverage. You should also make sure that you do not have a \u201cpay and walk\u201d policy.\u00a0This is a policy where the insurance company has the option of paying the limits of the liability coverage and then not providing a defense.Liability coverage excludes certain activities.\u00a0For instance, if you are involved in a road rage incident and intentionally run your car into someone else, your insurance company will not pay for the damages you cause.\u00a0Another example of an exclusion is punitive damages.\u00a0Most liability policies exclude coverage for punitive damages. For instance, if you have a previous OWI and cause an accident by driving drunk, the injured person may sue you for punitive damages.\u00a0These are money damages designed to punish you for driving drunk. This list is by no means a complete list of all the things excluded by your insurance company. See the first paragraph of this blog.Medical Payments.This is coverage designed to pay medical expenses regardless of who was at fault in the accident. The limits on this coverage range from $1,000 up to $25,000.\u00a0Medical payments coverage can be very helpful if you do not have health insurance, or if you have high deductibles or co-pays. If you do not have any health insurance, you can submit your medical expenses to the insurance company and they will pay up to the limits for the medical care related to your accident injuries.\u00a0This can be a great benefit and can keep your accounts from going to collections.\u00a0If you have health insurance, you can use the medical payments coverage to pay your co-pays and deductibles.\u00a0This way you do not have to spend money out of your pocket paying medical expenses.Unisured Motorist Coverage.This is insurance to protect you if someone hurts you by the negligent use of an automobile and has no liability insurance. If you are ever injured by an uninsured driver, your insurance company will pay up to the limits of your uninsured motorist policy for things such as medical expenses, lost wages, skilled nursing care, medications, and pain, suffering, and disability. If you have a\u00a0limit of $50,000 on your uninsured motorist policy, that is the most they will pay no matter how serious your injuries are.\u00a0It is a good idea to talk to your agent and see how much more the premium is if you increase your uninsured coverage.Underinsured Motorist Coverage.This is coverage for you if the person who negligently caused the accident has a little insurance, but not enough to pay all the damages.\u00a0For instance, if the at fault driver has $25,000 in liability coverage, and you have $100,000 in damages, then you can look to your insurance company to pay the difference.\u00a0There are many landmines and aspects of underinsured motorist coverage that make no sense. For instance, if you have $100,000 in underinsured motorist coverage and the person who injured you by the negligent use of her automobile has a $100,000 liability policy, you cannot collect anything under your policy no matter how badly you are hurt.\u00a0This is because the liability limit equals the underinsured limit.\u00a0If you purchased $250,000 worth of underinsured motorist coverage and you were injured by a driver with $100,000 in liability limits, you could collect up to $150,000 in underinsured motorist coverage.\u00a0This is true even though you paid a premium for the $250,000 in coverage.Now that I have laid out the basics, I have to go into a little lawyer speak.\u00a0Each policy is different and contains specific terms and conditions. You should read the policy carefully and review any questions with the agent or an attorney.What Insurers Don\u2019t Want You to Know After an Accident"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.lawtoncates.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Automobile Insurance Basics","item":"https:\/\/www.lawtoncates.com\/blog\/automobile-insurance-basics\/#breadcrumbitem"}]}]