Car crashes are a natural consequence of individual transportation. People can make mistakes in traffic that cause devastating collisions. The likelihood of a crash is the reason that the state requires liability insurance coverage.
Every driver has to carry a minimum amount of insurance to legally drive on public roads. If they are at fault for a collision, then the people involved in the wreck have the option of filing an insurance claim. When collisions lead to injuries or premature mortality, the people involved in the wreck can file an insurance claim. In many cases, they may choose to pursue a civil lawsuit as well. Why is civil litigation frequently necessary when people have major car crash losses?
Mandatory coverage amounts are low
The amount of insurance required to legally drive does not reflect the potential costs that collisions can generate. The state only requires $15,000 in property damage coverage. Anyone who has shopped for vehicles recently likely recognizes that $15,000 may not be enough to purchase a reliable used vehicle, let alone replace a nearly-new vehicle totaled in a wreck.
The requirements for bodily injury coverage are higher but still too low, given the potential expenses a crash could generate. Drivers have to have $25,000 in bodily injury coverage available if a collision hurts one person. The coverage required doubles to $50,000 if a single crash injures two or more people.
Bodily injury insurance coverage typically covers not just medical expenses but also lost wages and lost future earning potential. Particularly when collisions cause catastrophic injuries or someone dies, the minimum coverage required by the law is insufficient to cover collision expenses.
There’s also the possibility of a driver lacking the coverage required by law. Some people fail to make their monthly payments, while others intentionally cancel their policies after renewing their vehicle registration. If they cause crashes, the people involved in the wreck may not have any option other than litigation to pay for their losses.
Filing a lawsuit is sometimes the only way for people to cover the cost of a motor vehicle collision. People involved in a crash may want to keep records of their losses and look into every possible source of compensation to cover their expenses.