Can Getting Insurance the Same Day as an Accident Hurt Your Case?

February 29, 2024

Video Transcript:

Vehicles must be insured to compensate car accident victims, though greater compensation may be available in a car accident case. But can getting insurance the same day as an accident hurt your case? Hi, I’m speaking on behalf of Hensley Legal Group, a personal injury law firm based out of Indiana. I’d like to discuss how timing can create challenges for a car accident case. How Car Insurance Works Car insurance is a contract between a car owner and an insurance company that protects the owner from financial losses in an accident. If the owner pays car insurance premiums, the insurance company must cover losses up to the maximum limits of the policy. Nearly every state requires vehicle owners to carry liability insurance on their vehicles, which covers bodily injury and property damage caused to others. The insurance policies for the vehicles in a car accident may be sources of economic recovery, depending on the nature of the accident and who was at fault for it. If you were not at fault, you and your passengers would primarily recover compensation from the other vehicle’s liability policy. If you were at fault, the injured parties could recover for your liability policy. Were You Actually Covered at the Time of Your Car Accident? But were you actually covered at the time of your car accident? If your premiums were up to date, your insurance should apply for the car accident up to the limits of your policy. But what if you just got your insurance on the same day as your accident? The answer will depend on the terms of the policy and when the accident took place. If your car accident occurred before you purchased insurance, your policy of insurance would not cover that accident. If you got into a car accident on the same day you got the insurance but after you purchased the policy, your insurance would cover the accident if the policy had gone into effect. Most insurance companies offer plans that become active the day you purchase them. If your payment has cleared, your insurance should cover any accidents after that point, though you should always confirm the exact date and time that your policy becomes active and don’t drive your vehicle until then. Could You Recover Compensation If You Are Not Insured? Even if your insurance policy was not active, compensation may still be recoverable if the other driver was at fault for the car accident. But if you were at fault, you may not be able to recover anything. Reach Out to Hensley Legal Group If you find this video helpful, please hit the “like” and “subscribe” buttons. And if you have been hurt in a car accident, reach out to Hensley Legal Group, where we have been fighting for Indiana car accident victims for over 25 years.