Probably the best example of how casualty insurance works is an auto accident. Consider this hypothetical example:
Let’s say Maggie backs out of her driveway and hits Lisa’s parked car, resulting in $600 of damage.
Because Maggie was at fault, she is legally liable for those damages, and she must pay to have Lisa’s car repaired. Liability insurance could protect Maggie from having to cover the damages out-of-pocket.
In this situation, Maggie would contact her insurance company and provide details about the incident.
For example, she may communicate to her insurance company that the incident occurred outside of her house at 8:00am on the 1st of the month.
Maggie’s insurance company would assign an adjuster to investigate the claim.
The adjuster may interview Maggie, may contact Lisa for more information, review damages to each car, and potentially review medical records if applicable.
