Underinsured Drivers & Car Accidents
By Aaron Larson
Law Offices of Aaron Larson
Contents
When a driver chooses to carry the minimum insurance coverage required by law, or where injuries which result from an accident are particularly severe, they may not have adequate insurance coverage to adequately compensate their victims in a car accident. Even where policy limits are reasonably high, an accident involving multiple claimaints can result in insufficient coverage for each injured individual.
Liability Beyond Policy Limits
A driver who has insufficient insurance coverage, but has personal assets which might be recovered following an accident, puts those personal assets at risk. In some states, where there is an unsatisfied judgment arising from an automobile accident, the at-fault driver will not be able to renew his driver's license until the judgment is paid. That can force some drivers into bankruptcy.
Drivers who have significant personal assets may wish to explore obtaining a higher policy limit, or explore the possibility of obtaining umbrella coverage to provide insurance coverage in those rare circumstances when their regular insurance policies prove inadequate.
Difficulty Recovering Adequate Damages
The easiest way to collect damages following an automobile accident is through the other driver's insurance company.
Going Beyond The Policy Limits - Personal injury lawyers tend to be reluctant to pursue a defendant's personal assets, beyond the limits of insurance coverage, in automobile negligence litigation. First, it can be difficult to collect such a judgment - while an insurance company will simply write a check, personal assets must be tracked down, then additional measures must be taken to collect against them, often with considerable constraints under state law. Second, even when such a recovery is obtained, it will often be discharged in bankruptcy such that the additional time and cost of obtaining the higher verdict goes to waste. Before making the decision to pursue damages beyond the policy limits, it makes sense to ensure that the defendant is collectable - that is, that it will be possible to recover the damages recovered.
Underinsured Motorist Coverage - As with uninsured motorist coverage, some insurance companies offer policy provisions to compensate accident victims who cannot obtain adequate damages through the at-fault driver's policy. Not all insurance companies offer uninsured motorist coverage, and many which offer such coverage won't inform drivers of the option unless asked, so most drivers do not have this type of coverage on their policies.
If you wish to hire a personal injury lawyer, you may find this article on "How To Hire A Personal Injury Lawyer" to be helpful.
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