topic Re: Car insurance ? in Community Chat

Car insurance ?

mima — Fri, 18 Jul 2014 13:25:27 GMT

This is in Kansas. If Bob has a truck and lets his adult relative drive it as if it were their own, Bob pays the insurance and lists Mary (the relative) as the main driver. Bob only has liability. Mary wrecks the truck, no one else is involved, so we are assuming it is Mary's fault unless they find that the truck malfunctioned. Will Bob's liability insurance cover Mary's hospital bills?

Since he only has liability, maybe they won't pay any of the hospital bills? I don't know how it works.

All fake names, but a true story. Please don't tell me to mind my own business in the matter, because it is my business.

I'm sure we will find out when this is over, but just curious.

Of course, this might vary policy to policy or state to state maybe.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 13:38:04 GMT

OK, I should have googled first. I just googled and the way I read it, if you have liability only, it won't pay Mary's medical bills. If that is the case, I'm assuming Mary will be responsible for the medical bills. Right?

I'm talking to myself. LOL Just trying to figure this out.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 13:39:43 GMT

Mima, you are not talking to yourself. I needed a second cup of coffee to help me think.

Re: Car insurance ?

RedTop — Fri, 18 Jul 2014 13:40:08 GMT

I would think that if the accident is Mary's fault, she should use her medical insurance to cover her hospital expenses. However, my liability coverage lists an amount for bodily injury and property damage, but I would think that is to cover who, or what you damage, not to cover yourself, or the person driving your vehicle.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 13:44:17 GMT

I realize Michigan and Kansas are different states and the auto insurance provisions in a policy can be different.

In Michigan, when you don't have theft or damage insurance on your vehicle it's called no-fault. The purpose of no-fault or liability insurance up here is to cover injuries/damages sustained in an accident. If you think about it, the insurance company is not fixing or replacing Bob's truck so what is Bob paying for?

Now, if Bob owns the truck, but Mary is listed on the policy as the primary operator of the vehicle, I cannot imagine why Mary's injuries wouldn't be paid for. If Mary was not listed on the policy, I could see the insurance company getting wiggy because then she would be what we call up here - an uninsured driver - which we also have provisions for with no-fault law.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 13:44:22 GMT

On 7/18/2014 RedTop said:
I would think that if the accident is Mary's fault, she should use her medical insurance to cover her hospital expenses. However, my liability coverage lists an amount for bodily injury and property damage.

I think that amount is for the other people and their property, not you. Maybe I'm wrong.

Mary doesn't have medical coverage, that's why there is a concern.

Bob thinks his insurance will cover her and I don't think so. Bob is scared the hospital will sue him for the bills. I think they will go after Mary, not Bob.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 13:46:53 GMT

On 7/18/2014 Bird mama said:
I realize Michigan and Kansas are different states and the auto insurance provisions in a policy can be different.

In Michigan, when you don't have theft or damage insurance on your vehicle it's called no-fault. The purpose of no-fault or liability insurance up here is to cover injuries/damages sustained in an accident. If you think about it, the insurance company is not fixing or replacing Bob's truck so what is Bob paying for?

Now, if Bob owns the truck, but Mary is listed on the policy as the primary operator of the vehicle, I cannot imagine why Mary's injuries wouldn't be paid for. If Mary was not listed on the policy, I could see the insurance company getting wiggy because then she would be what we call up here - an uninsured driver - which we also have provisions for with no-fault law.

I thought liability insurance would be for if Mary hit someone else and did damage to them, Bob's insurance would pay for the other people but not Mary. I hope you are right in this.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 13:49:30 GMT

Mima, I have a relative who carries just no-fault or what you call liability insurance on her car. Her insurance company recently questioned her about having health insurance. She is currently uninsured and her no-fault auto insurance policy premium increased as a result of it. That prompted me to call my auto insurance agent (different company) to ask if that was something new (asking if people are covered by health insurance) as the result of PPACA. My agent said that auto insurance (even just no-fault) is more expensive when the insured person (on the auto policy) does not have health care because the auto insurance bears the total cost of any injuries. This was within the last 2 weeks - so that's why this is fresh in my mind.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 13:50:51 GMT

Mima, do you know the insurance company? If I am asking you something this personal I will share my insurance company info. My family member has allstate and I have state farm.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 13:53:46 GMT

Okay, going off tangent here but also learned something distressing when I was on the phone with my agent. Up here, when you get Medicare coverage, I can look forward to my car insurance going up as Medicare does not coordinate coverage for auto accidents. All my life, my insurance agents have sung that song that don't worry Bird, your insurance will go down when you get older. Or don't worry Bird, when you move to a better neighborhood your insurance will go down. I'm 52 and not a menace to society when behind the wheel and my insurance just keeps going up. In Michigan, you don't get any relief for auto insurance.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 13:57:09 GMT

On 7/18/2014 Bird mama said:
Mima, do you know the insurance company? If I am asking you something this personal I will share my insurance company info. My family member has allstate and I have state farm.

I'm totally guessing they have Farm Bureau. Bob's house insurance is through FB.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 14:00:45 GMT

Mima, here is a link for you to look it. Kansas is a no fault state like Michigan and this information may be helpful. I also took an excerpt from the page (below).

http://www.all-about-car-accidents.com/resources/insurance-law/car-insurance/kansas-auto-insurance-l

<h2>Kansas is a ‘No-Fault’ Car Insurance State</h2>

Kansas is one of a dozen states (plus the District of Columbia) that follow a no-fault car insurance system. After an accident, each driver’s own insurance will pay for medical bills up to the personal injury protection (PIP) limit, regardless of who was at fault for the accident. To step outside of the no-fault system and file a liability claim or lawsuit against the at-fault driver in Kansas, you must exceed your PIP amount and have suffered a “serious injury,” which Kansas defines as including any of the following:

permanent disfigurement
fracture of weight-bearing bone
compound, comminuted, compressed, or displaced fracture of any bone
permanent injury, or
permanent loss of a body function.

Keep in mind that the no-fault rules only apply to personal injury after a car accident; if you have suffered property damage as a result of the crash (damage to your vehicle, in other words) the at-fault driver will be on the financial hook for getting the property fixed or replaced.

Re: Car insurance ?

TaxyLady — Fri, 18 Jul 2014 14:05:00 GMT

What is the purpose of having liability insurance if it doesn't pay the driver's medical expenses? Just to pay the other person's medical bills? I think paying for all person's involved in the accident is why liability insurance is required in most states. Now they may have a clause that states that you must use your medical insurance first.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 14:07:48 GMT

On 7/18/2014 Bird mama said:
Mima, here is a link for you to look it. Kansas is a no fault state like Michigan and this information may be helpful. I also took an excerpt from the page (below).

http://www.all-about-car-accidents.com/resources/insurance-law/car-insurance/kansas-auto-insurance-l
<h2>Kansas is a ‘No-Fault’ Car Insurance State</h2>
Kansas is one of a dozen states (plus the District of Columbia) that follow a no-fault car insurance system. After an accident, each driver’s own insurance will pay for medical bills up to the personal injury protection (PIP) limit, regardless of who was at fault for the accident. To step outside of the no-fault system and file a liability claim or lawsuit against the at-fault driver in Kansas, you must exceed your PIP amount and have suffered a “serious injury,” which Kansas defines as including any of the following:

permanent disfigurement

fracture of weight-bearing bone

compound, comminuted, compressed, or displaced fracture of any bone

permanent injury, or

permanent loss of a body function.

Keep in mind that the no-fault rules only apply to personal injury after a car accident; if you have suffered property damage as a result of the crash (damage to your vehicle, in other words) the at-fault driver will be on the financial hook for getting the property fixed or replaced.

I am not very smart when comprehending stuff like this. Does this (above) say Bob's insurance will cover Mary's hospital bills up to his limit? I truly thought liability insurance only covered the other person's injuries.

I guess the reason I don't understand is this is (info. above) for when two vehicles are involved. Mary was the only driver in this situation. I'm not sure how it can be no fault when she was the only driver.

Thank you for the info.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 14:11:35 GMT

On 7/18/2014 TaxyLady said:
What is the purpose of having liability insurance if it doesn't pay the driver's medical expenses? Just to pay the other person's medical bills? I think paying for all person's involved in the accident is why liability insurance is required in most states. Now they may have a clause that states that you must use your medical insurance first.

I thought liability insurance only paid for the other guy (in this case there is no other guy), and full coverage pays for both parties involved.

Since we have a newer car, we have full coverage which pays for our losses also.

I probably am totally wrong. Thankfully I haven't had any experience in using our insurance.

Re: Car insurance ?

mima — Fri, 18 Jul 2014 14:12:02 GMT

On 7/18/2014 Bird mama said:
Mima, you are not talking to yourself. I needed a second cup of coffee to help me think.

LOL

Re: Car insurance ?

mima — Fri, 18 Jul 2014 14:12:58 GMT

On 7/18/2014 RedTop said:
I would think that if the accident is Mary's fault, she should use her medical insurance to cover her hospital expenses. However, my liability coverage lists an amount for bodily injury and property damage, but I would think that is to cover who, or what you damage, not to cover yourself, or the person driving your vehicle.

This is what I thought too. I'm trying to figure out if that is right or not.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 14:16:36 GMT

Mima,

Here's a link the defines no-fault insurance

http://www.all-about-car-accidents.com/content/what-no-fault-insurance

A no-fault car insurance system is followed in the District of Columbia and 12 states: Florida, Hawaii, Kansas, Kentucky, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

If you’re a driver in one of these states and you get into a car accident, the first thing you need to understand is that under no-fault rules you turn first to your own car insurance coverage to get payment for medical expenses and lost income, up to certain limits. It’s irrelevant who caused the accident (that’s why it’s called no-fault).

Re: Car insurance ?

RedTop — Fri, 18 Jul 2014 14:17:23 GMT

Yes, you carry liability coverage for the person, or property you hit or damage, not for yourself. If Mary has no medical insurance to cover her hospital expenses, she needs to look into filing for the charity program to get those expenses covered. The hospital would not sue Bob, but it is possible that circumstances could warrant Mary to sue Bob for payment of her medical expenses, current, and future, if she should happen to have injuries that persist for years to come.

Re: Car insurance ?

Bird mama — Fri, 18 Jul 2014 14:19:35 GMT

The first link that I gave you, outlines the minimum required insurance as defined by the State of Kansas.