The possibility of a car crash is just one of the costs people accept in exchange for the convenience of individual transportation. Insurance is another expense related to car ownership, and it is necessary to reduce the possibility of financial hardship if one were to ever cause a crash.
Liability insurance coverage as required by Maryland state law can reimburse people who get hurt or who suffer expensive property damage in a collision. People often pay for extra coverage to protect their property and future income, as well as to enhance their own protection after a crash caused by someone else.
However, while people trust that insurance will take care of them, many motorists discover after a collision that the policy that applies doesn’t have sufficient coverage to meet their needs. Why might insurance fall short of the costs caused by a crash?
1. Many drivers have low insurance coverage
The worse a crash is, the more likely insurance won’t be enough for someone’s expenses. What Maryland requires in liability coverage doesn’t realistically reflect the cost of a vehicle or of medical care. Drivers only have to have $15,000 in property damage coverage.
The bodily injury liability protection is higher but still far too low. If a crash injures one person, the minimum coverage amount is $30,000, with a minimum amount of $60,000 per crash regardless of how many people get hurt. Drivers who only have the coverage required by state law often will not have sufficient insurance to pay for someone’s hospital bills and lost wages after a major collision.
2. Some drivers don’t have insurance at all
There are always a few people who struggle to manage their budgets or who will intentionally cancel their insurance policies just to save a little bit of money. They take the risk that they might cause a crash or get pulled over without proof of insurance because it saves them a few hundred dollars.
When an uninsured driver causes a crash, the other people affected typically only have two options. If they have uninsured motorist protection on their policy, they may be able to make a claim against their insurance. Otherwise, a personal injury lawsuit may be the only means of recovering what the crash costs them.
Understanding how insurance can fail to cover expenses after a car crash can help people to adjust their expectations and improve their coverage. It can also inspire accident victims to seek legal guidance in order to explore additional opportunities for compensation.
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