When car crashes occur, people are often unsure of what happens next. Most drivers have never had to handle a major insurance claim. As a result, many people with injuries and other car crash costs begin the claims process with unrealistic expectations. They expect insurance companies to be supportive and friendly. They also expect to receive full compensation for all of the expenses related to the crash. Many people discover in the weeks following a car wreck that insurance isn’t as effective at limiting losses as they might have hoped.
What makes relying entirely on insurance after a car crash a potentially dangerous arrangement?
Policy limits may be too low
State lawmakers establishing insurance requirements have to balance the need to cover collision costs with affordability. Unfortunately, required liability coverage lags behind massive increases in vehicle and medical costs.
State law only requires $2,000 in property damage liability coverage. Drivers also have to carry bodily injury coverage. They generally need $25,000 worth of coverage if they injure one person in a crash. Minimal coverage policies generally provide at most $50,000 of coverage in crashes where multiple people sustain injuries.
Those coverage amounts may not be nearly enough given the cost of replacing a totaled vehicle and the expense involved in modern trauma care. Many people realize after reviewing policy documents that the cost of the crash could go well beyond the available coverage.
Insurance providers want to control costs
The other major concern for those seeking insurance coverage after a crash is the profit incentive of the insurance company. Businesses generally want to limit expenses while optimizing revenue. In the insurance sector, denying claims or settling for less than the policy limits are key methods for controlling costs.
Many people trying to handle car insurance claims on their own behalf end up manipulated into accepting less coverage than they deserve. Those coping with major property damage or significant injuries may need help evaluating their options.
Motor vehicle collisions can sometimes provide grounds for personal injury or wrongful death lawsuits. People can take legal action against the drivers who cause car crashes. They can also sometimes pursue third-party claims against employers, vehicle manufacturers and other businesses that may have contributed to the wreck. Looking into options beyond basic insurance coverage can help people cover their losses after a collision.