What Happens If You Get in an Accident The Day You Bought Car Insurance?

Accidents happen. That’s why we have insurance. However, what happens if you get into an accident on the same day you purchased your insurance policy? For most, this would seem like a nightmare scenario, but the reality is that this occurs all the time. As we said, accidents happen. We cannot always predict when they will occur, but somebody will experience a car accident the same day they get their insurance. Consulting with an auto accident lawyer in Chicago can provide guidance in this situation, and these are the steps they should take.

Illinois Minimum Insurance Requirements

In Illinois, all drivers are required by law to carry minimum levels of auto insurance coverage. The Illinois Department of Insurance sets these requirements to help drivers cover the costs associated with a collision, whether they are at fault or not. Understanding the state’s minimum insurance requirements is crucial, especially when you are involved in an accident soon after purchasing your policy.

The mandatory minimums for auto insurance in Illinois include the following coverages:

• Bodily injury liability: $25,000 per person and $50,000 per accident. This covers the medical expenses, lost wages, and other damages of those injured in an accident that you are legally responsible for.
• Property damage liability: $20,000 per accident. This covers the repair or replacement of any damaged property in an accident for which you are at fault.
• Uninsured motorist bodily injury: $25,000 per person and $50,000 per accident. This covers those in your vehicle if you are injured in a collision caused by a driver who does not have insurance.

These are the minimum amounts required by Illinois law. However, many drivers opt for higher limits or additional coverages, such as collision and comprehensive insurance, to further protect themselves financially in the event of an accident.

When Did You Purchase Your Insurance?

The timing of your insurance purchase plays a critical role in whether your claim will be covered if you get into an accident on the same day. In Illinois, insurance coverage typically begins once you purchase a policy and receive confirmation from your insurer. However, it is essential to understand exactly when your coverage became effective, as this will determine if the accident falls within the coverage period.

If you purchased your insurance policy before the accident occurred, the insurance company should honor your claim, provided that the accident happened after the effective start time of your coverage. Keep in mind that the effective start time can vary depending on how and when you bought the policy. For example:

• Online purchases: If you purchased your insurance online, coverage may begin as soon as the transaction is completed, or at a specific start time that you selected during the process.
• Over the phone: When purchasing insurance over the phone, the coverage may begin immediately after confirming your payment details with the agent.
• In-person purchases: If you purchased your policy in person, your coverage typically begins after the documents are signed, and payment is made.

It is important to note that insurance companies do not provide retroactive coverage. If you were involved in an accident before purchasing your policy or before your policy’s effective date, the insurance company will not cover the claim.

What You Should Do in the Event of an Accident?

If you purchased an insurance policy, any accident that occurs after you purchased the policy should be covered. This includes accidents that occur on the same day you purchased the policy. Please understand that buying insurance after a crash will not help at all. Insurance policies only cover incidents that occur after the policy becomes effective.

Let us assume that you, unfortunately, get into an accident the same day after purchasing your insurance policy. Yes, this could rightfully be defined as “bad luck,” but this is why we have insurance. Some of the steps you should take include:

Contacting the police

Law enforcement officials need to come to the scene of nearly every accident that occurs in Illinois. If you just purchased your insurance policy, it is going to be crucial to have an accident report to give to the insurance carrier. Insurance companies will look to make sure that the incident did indeed occur after the policy became effective. The best way to demonstrate this is to have an official government document (the police report) to hand over.

Prompt medical treatment

Any car accident victim should seek prompt medical treatment, even if the signs and symptoms of any injuries are not severe. It is not uncommon for injuries to get worse in the hours following a crash. Prompt medical treatment will help demonstrate to the insurance carriers that the injuries sustained did indeed occur in the accident.

Preserving evidence

At the scene of a crash, it may be possible to obtain and preserve some evidence. We encourage crash victims to use their phone or any other type of device with a camera to take photographs of property damage, injuries, license plate numbers, possible causes of the crash, debris and skid marks, and more.

Additionally, if there are any eyewitnesses to the incident, their names and contact information should be written down. These individuals may be able to provide valuable testimony to the insurance carriers or to a personal injury jury later on.

Make a note of any cameras you see in the vicinity that could have captured the incident on the footage. This includes cameras on nearby homes, businesses, traffic cams, or dashcams in other vehicles that stopped.

Contacting the insurance carrier

If you just purchased your insurance, you may not have a clear understanding of how to report incidents. Refer to your insurance policy welcome documents or go to the website of your insurance carrier. Often, there are mobile device apps for the insurance carriers that allow individuals to make claims promptly.

However, do not be too forthcoming with the insurance claims adjusters at first. Their goal is to limit how much compensation they pay you after an incident occurs. We encourage you to reach out to a skilled vehicle accident lawyer who can handle communication with your insurance carrier.

How Will the Crash Affect Your Car Insurance Policy?

Being involved in an accident on the same day you purchased your insurance can have significant implications for your policy moving forward. One of the key concerns for many drivers is how the crash will affect their insurance premiums and coverage options in the future.

A few factors that could come into play after your accident include:

Premium Increases

If you are found at fault for the accident, it is likely that your insurance premiums will increase. Insurance companies adjust rates based on risk, and being involved in an accident soon after purchasing a policy could signal to the insurer that you are a higher-risk driver. As a result, your premiums may go up when your policy renews. The amount of the increase will depend on several factors, including the severity of the accident and the cost of the claims paid out by the insurer.

Policy Cancellations

While it is rare for an insurance company to cancel a policy after a single accident, it is not impossible. Illinois law prohibits insurers from canceling a policy mid-term unless there is a valid reason, such as non-payment of premiums or a significant change in the risk presented by the driver. However, if you are involved in multiple accidents within a short period, the insurance company may choose not to renew your policy when the term ends.

Claims Process

Filing a claim for an accident that occurs on the same day you purchased your insurance can sometimes lead to a more thorough review by the insurance company. Insurers may scrutinize the details of the purchase and the accident to ensure that there was no attempt to obtain coverage after the fact. As long as your policy was active before the accident occurred, and there was no intent to deceive the insurer, your claim should proceed as usual. However, it is always a good idea to work with an experienced car accident attorney to ensure that your rights are protected throughout the claims process.