People involved in car crashes often expect to file insurance claims. Typically, the party at fault for a wreck has an obligation to provide liability coverage that reimburses the people affected by the crash. State law mandates insurance, which can leave people with a false sense of confidence after a crash occurs.
Some drivers do not comply with the law. They cancel their policies intentionally or make money management mistakes that result in their coverage lapsing. Even if there is a policy in place, people with substantial property damage losses and injuries caused by collisions may find that insurance cannot fully cover their expenses.
Underinsured drivers are a major hazard and may be more of a concern than uninsured drivers.
State requirements are not high enough
State lawmakers have to balance the need for affordable coverage with the need for adequate compensation after a crash. Unfortunately, the mandatory coverage amounts currently enshrined in state law are not adequate in cases involving serious injuries or totaled vehicles.
For example, state law currently requires a minimum of $25,000 in property damage coverage. If a driver totals someone else’s vehicle, $25,000 may fall far short of the current fair market value of the totaled vehicle.
In cases involving injuries, the possibility of an underinsured driver is even higher. Drivers need to carry $25,000 worth of bodily injury coverage to pay for medical expenses and cover lost wages. In cases where two or more people sustain injuries, the state minimum coverage amount increases to $50,000. Particularly when people require surgery, when a crash injures multiple people or when a professional can never resume their career, the minimum coverage amounts are likely to be insufficient.
What other options are there?
Those dealing with the aftermath of the crash caused by an underinsured motorist have several options. Some people may have underinsured coverage and similar supplemental protection on their own policies. These drivers may be able to limit their costs by using their policies to cover some of their crash expenses.
People typically need to explore whether litigation might be an option. Underinsured drivers are often directly liable for the financial harm they cause others by carrying insufficient insurance coverage. People hurt in a crash may be able to file a personal injury lawsuit against an underinsured driver seeking compensation for any uncovered expenses.
There might also be third-party liability. Perhaps the driver caused the crash while they were on the clock for work. Maybe issues with the vehicle or with repairs recently performed on the vehicle contributed to the wreck. It may sometimes be possible to hold a business partially responsible for a crash with the right legal strategy.
Reviewing the circumstances of a collision can help people evaluate their options for financial compensation. Those hurt by underinsured drivers often need to turn to the civil courts after a car wreck.
