Automobile liability insurance provides payments from the at-fault driver’s policy to victims after injuries and property damage occur in a car crash.
After a motor vehicle accident where injuries occurred, clients may have an interest in filing an insurance claim or lawsuit. Any potential money won in this type of claim could come from the automobile liability insurance policy of the at-fault driver. This liability insurance policy would cover things like medical costs, missed wages, and a pain and suffering award.
Sometimes, a car accident liability insurance company refuses to treat victims fairly. The insurer may deny claims without adequate evidence or may delay making promised payments. A victim can seek help from a bad-faith insurance lawyer to try to combat this type of behavior from the insurer.
How Automobile Liability Insurance Works for a Driver
Liability car insurance is a type of insurance that most people hope they never need to use. This policy only provides coverage when the policyholder causes an accident resulting in property damage or injuries to others.
Having liability coverage is vital when the driver’s actions cause an accident and expose the driver to a personal injury claim or lawsuit. Automobile liability insurance protects the driver by making financial award payments to the victims. Without liability coverage, the victims could sue the driver. In that situation, payments would come directly from the driver’s personal finances.
Nearly all states require drivers who own automobiles to carry at least a minimum amount of automobile liability insurance in order to legally operate a vehicle on the road. This means the liability portion of auto insurance is part of almost every policy a driver selects. The driver does have the option of selecting higher minimum limits than the state requires on the policy. However, higher minimums lead to higher monthly premiums, which is why many people opt for the minimum coverage only.
What Liability Auto Insurance Does Not Do
Liability insurance does not cover expenses that the driver suffers in the accident. If the driver’s car has damage, a comprehensive auto insurance policy would cover this damage minus any deductible. Health insurance might cover the driver’s injuries.
The at-fault driver’s car liability insurance policy does not allow the driver to seek reimbursement for lost wages or pain and suffering.
Criminal penalties are possible if a driver fails to obtain and hold the proper level of auto liability insurance required in the state. The driver could lose the ability to hold a driver’s license after allowing a liability insurance policy to lapse.
Contact our team today so we can fight to help you get the compensation you deserve.
How Accident Victims Use Automobile Liability Insurance
As the victim in a motor vehicle accident where someone else is at fault, a person can seek an injury claim against that other party’s car liability insurance in pursuit of compensation for the following damages:
- Current medical treatment costs
- Estimated future medical bills
- Current missed wages and lost employee benefits
- Estimated future missed wages
- Pain and suffering
- Emotional trauma
- Reimbursement for property damage
Sometimes, the insurance company will immediately make a financial offer to the victim. Other times, the insurer may delay offering a payment or make a settlement offer far less than the expected award. A personal injury law firm can advise on handling this situation. An experienced attorney will fight for payments that reflect the level of hardships the victim is experiencing related to the injuries.
Understanding Limits in Car Liability Insurance Policies
An auto liability insurance policy has coverage limits in a few different areas:
- Bodily injury per person: Policies limit the liability payment for the medical bills for each accident victim.
- Bodily injury per accident: The policy has a limit on the total amount it will pay in medical costs, regardless of the number of victims in the other vehicles.
- Property damage per accident: The policy limits the amount it will pay in property damage claims for the crash.
How Minimums in Liability Policies Work
Although most states require the driver to hold a minimum amount of liability insurance coverage, some drivers choose to purchase more coverage. By purchasing extra coverage, the driver reduces the chance of having any extra medical costs come directly out of the driver’s financial accounts.
If the driver has $100,000 in medical liability coverage, but the victim has $200,000 in medical costs, the policy won’t cover more than $100,000 of the bills. At that point, the victim’s car accident lawyers could file a claim against the driver’s personal finances.
Often, the minimum amount of liability insurance that a state requires drivers to carry won’t fully cover serious injuries for victims.
Other Options for Victims When Liability Insurance Falls Short
Sometimes, the driver may not have personal finances to cover the additional medical costs the victim faces. If so, the victim may turn to the underinsured motorist (UIM) coverage on the victim’s auto insurance policy. This payment could make up the difference if the victim has enough UIM coverage.
If the insurance company fails to offer the full coverage amount to the victim, the victim could consider suing the insurer for additional compensation.
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Trust Accident Hotline for Advice With Your Personal Injury Case
After you suffer injuries in an accident that was not your fault, you may decide to seek an insurance claim against the driver’s liability insurance policy. This money could help you with medical bills, lost wages, and ongoing pain.
To receive this money, it’s crucial to establish fault in an accident. The at-fault party would pay this money through injury insurance. If their insurance fails to fully cover your damages, they may owe you additional money out of pocket.
The team at Accident Hotline fully understands automobile liability insurance. When you are considering filing an injury lawsuit, reach out to Accident Hotline for advice about the case. The team can find a car accident lawyer to help with your case.
Accident Hotline also helps clients with injuries suffered in other types of accidents. Contact Accident Hotline today at (888) 340-7454 for a free consultation.
For a free consultation, call 888-340-7454