Fault for a crash usually lies with one of the drivers involved in the wreck. People who violate traffic statutes or engage in negligent behavior at the wheel may be legally and financially responsible if their conduct causes harm to others.
Many times, those affected by serious collisions file insurance claims to cover their losses. Insurance statutes require that motorists carry liability coverage for both property damage expenses and losses related to bodily injuries. Sometimes, those with significant collision expenses may eventually determine that the party at fault was either uninsured or underinsured.
How do people cover their costs when a driver without sufficient insurance is to blame for a wreck?
Underinsured drivers are everywhere
Most motorists make good-faith efforts to comply with state requirements. A small percentage of drivers either fail to pay their insurance premiums or cancel their policies on purpose to save money. Those uninsured drivers leave others at a major disadvantage if they cause wrecks.
Even those who technically comply with the law may have insufficient insurance coverage given the extent of the harm they can potentially cause. Current state rules require $25,000 in property damage coverage.
Protection from liability related to bodily injuries has two policy limits that depend on the number of people hurt. The minimum amount of coverage in a crash involving one injured person can be as low as $25,000. The state requires $50,000 in bodily injury liability coverage if a crash injures two or more people.
The minimum amount of coverage may be far from adequate. For every uninsured driver, there are multiple underinsured drivers operating their vehicles without enough coverage, given the potential damages a crash might generate.
What forms of compensation are available?
The people hurt by uninsured or underinsured drivers have two main options. Some people carry underinsured and uninsured motorist protection on their policies. People with supplemental coverage can use their own insurance policies to offset the limitations of the other driver’s policy or address their total lack of coverage.
Other times, litigation may be the only viable option. A driver without insurance or without enough insurance may face direct liability if the people affected by the crash file lawsuits in civil court. Occasionally, third parties may be at least partially liable for collisions caused by drivers without sufficient insurance coverage.
People trying to limit their losses after a wreck caused by a driver without appropriate coverage may have several options available to them. Reviewing any insurance policies that apply and the crash report can help people understand their options for seeking compensation after motor vehicle collisions.