Getting hurt in a crash caused by an uninsured driver is perhaps one of the worst possible experiences a person can go through. When people realize that the driver at fault for a wreck doesn’t have liability insurance coverage, they may panic.
Although it is certainly true that uninsured drivers put other people in very dangerous situations, the same can be said of underinsured motorists. People who initially take for granted that they have financial support after a crash may eventually come to realize that the driver at fault was underinsured given the scope of the damage they caused.
State requirements may be lower than crash costs
Many underinsured drivers carry the minimum amount of insurance coverage required by law. They carry both property damage and bodily injury protection, but their policies may offer insufficient coverage for both types of losses.
Wisconsin state statutes require $10,000 in property damage liability coverage. Anyone who has looked at the prices of used vehicles recently can easily recognize how $10,000 may not be enough to replace a total vehicle.
The requirements for bodily injury liability coverage are also too low given the injuries possible in a car crash. If one person gets hurt, the driver at fault only has to provide $25,000 in coverage. That same amount has to cover both their medical bills and any wages they cannot earn because of their injuries.
The state imposes a higher coverage amount in case two or more people sustain injuries. Even then, all of the injured people may have to share $50,000 of coverage.
How do people handle underinsured collisions?
There are several options available to the people affected by crashes caused by underinsured drivers. In some cases, people may have supplemental coverage on their insurance policies. They can use their own coverage to augment the protection provided by the driver at fault. They may face a complex claims process and increased premiums after the claim.
It may also be possible to take legal action against the driver at fault for the crash. People generally have direct financial liability in scenarios where they do not carry sufficient insurance and cause harm to others. Occasionally, there may even be third parties, including businesses, that may have a degree of liability for the collision. Employers, mechanics and vehicle manufacturers may have contributed to the situation in some way.
Reviewing the circumstances of the crash caused by an underinsured driver can help people recover their losses. The choice to carry minimal insurance does not absolve someone of their financial responsibility if they cause a wreck.
