A previous blog post on this site discussed the importance of knowing what your insurance policy covers. There is also a good reason for you to pay special attention to your policy if you completed the application for insurance online. The state of Arkansas requires every car insurance company that sells liability insurance to offer no fault coverage, also called Personal Injury Protection, in writing. If you decide you don’t want this type of coverage under your insurance policy then you also have to reject the coverage in writing. It is then assumed that because the rejection was in writing and signed that there will be no misunderstanding in the future if something unfortunate happens and the insurance company refuses to cover certain expenses. Once upon a time, that would have been the end of the story. But online, in the electronic world where cute or sometimes irritating barnyard animals represent our insurance companies, you could be surprised at the information you are presumed to know.
While the convenience of purchasing insurance coverage online makes it a desirable practice, there may be some special issues that can arise as a result. For example, in one Arkansas case last year, a consumer who was injured in a car accident was unable to recover medical benefits. The person had completed the application for insurance online. In its first decision about this particular type of issue, the Supreme Court of Arkansas said that when an insurance application is completed online, that an electronic record fulfills the requirement of a written rejection of coverage. So if you choose to purchase insurance online, the electronic record of your rejection can prevent you from collecting medical benefits. It bears repeating that this is a good reason to pay special attention to your policy. Especially if you are like a lot of people and just try to get to the e-checkout at fast as possible.
The costs of a car wreck can add up just as quickly and it can be difficult to recover even in the best of circumstances. Most of us assume that if anything bad happens to us, our insurance will help out with medical expenses. The best way to make sure that you don’t face an unpleasant surprise is to know what coverage you have.