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What happens if the damages in an accident exceed the insurance coverage of the person at fault?
Wiki User
∙ 7y ago
You need a life insurance policy to cover the risk of death and a health insurance policy as a cushion against hospitalisation expenses. Buy Personal Accident Insurance Coverage :
Wiki User
∙ 7y ago
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What can protect someone from financial loss?
Insurance is the financial instrument invented to protect people from significant financial loss. The basic way insurance works is that the insured person pays a premium to the insurance company in exchange for insurance coverage in the event that something happens. When something does happen that would have otherwise financially ruined the insured, the insurance company pays for it. The insurance company makes money by playing the odds that all the people they will insure will not need insurance all at the same time and that the premiums they pay will outweigh the coverage they will need.
What happens to the mortgage if a house does not sell and you lose home owners insurance?
You still owe the mortgage. And you must continue to maintain the homeowners insurance. If not, the lender who holds the mortgage has the right to place "forced coverage" on the property at great expense to you. When they add "forced coverage" they simply increase your mortgage payment to adjust for the difference. And of course you must make each payment in full in order to remain current on the loan and avoid damaged credit or foreclosure.
If your home owners insurance is part of your mortgage payment and you stop paying your mortgage what happens to your insurance coverage?
Once you have defaulted on your mortgage or have gone into foreclosure all your rights on the homeowners policy are null and void. all rights of recovery revert to the Mortgage company. Basically you become uninsured and the mortgage company remains insured through the policy term. Also if the policy gets cancelled due to the foreclosure any refunds belong to the mortgage company.
Is it necessary to purchase mortgage payment protection insurance when buying a home?
"Mortgage payment protection insurance is essentially a form of life insurance. If something happens to you, your mortgage payments will be covered under the terms of your insurance plan. This insurance is definitely not necessary, and, in fact, a more standard plan like term life insurance may get you a better value for your dollar."
What happens if you pay your car loan so it doesnt get repossessed but you dont have insurance?
Your car finance company will add their own insurance that covers their vehicle, but not your liability. ANd it will significantly increase your payments. It would be so much cheaper and better protection for you to find your own insurance. Park it until you get insurance.
What happens if an accident is your fault and you have have insurance?
When this happens, your Insurance company pays for damages. If the accident is your fault, your insurance rates can go up.
What happens when your at fault in an accident but you can't pay for it?
Your insurance will care of the damages. If you don't have insurance, the other parties insurance will take care of the damages and then go after you.
If you have a car accident in someone else's car and they have full coverage will that cover the damages to the car you hit?
Usually, if the driver had the owner's permission to drive. What happens if the car is owned by the person that has the accident but the insurance is in your name? However you no longer want to be in that relationship or to have to pay that insurance?
What happens if you have a minor car accident and you have no insurance?
You pay for all damages if you were at fault, and get a citation and fine for not having insurance.
What happens if you hit an an uninsured motorists and you only have liability?
If the accident is your fault, your liability coverage will pay for the other person's damages. You will be out of luck as no coverage will be afforded for the damages to your vehicle or any injuries to you or your passengers.
What happens if you get in a car accident the day before your coverage starts?
Then you where not covered. You are personally responsible for all damages you incurred unless the accident was not your fault. You should not have been driving a car without insurance. You now must pay for that mistake. Learn from it.
What happens if the driver who is not at fault for an accident does not have insurance in California?
Typically, the uninsured driver will be cited for it, and your insurance co. is liable for the damages.
What happens when you get into a car accident and you do not have collision coverage?
You should be executed for stupidity (just kidding). You have to pay all damages yourself.
What do you do if your insurance lapses during an accident?
Your insurance is either valid on the day of your accident or it isn't. If you are asking what happens if the policy was valid on the day of the accident but lapses before the claim is settled then the coverage that was in effect the day of the accident still applies. If your policy was not in effect the day of the accident then coverage will not apply.
What happens if you are in an accident that is not your fault but you have no insurance or license?
you got to jail for not having insurance or a vaild license and you are personally liable for all the damages you caused.
What happens when you hit someone in a car accident then find out you don't have enough insurance to cover all their damages?
Once your insurance has paid, you are responsible for the rest.
What happens when you get hit by an uninsured driver who is completely at fault and he gets insurance the next day and wants to put it on insurance?
If the insurance is not valid on the day of the accident, there is no coverage.
