The road can be a dangerous place, although you can get from point A to point B safely most of the time. Problems arise after that one time that you either cause a collision or someone collides with you. You are a responsible citizen, so you purchased the insurance coverage your state requires, but not everyone is as conscientious as you are. When this is the case, the insurance gaps in your coverage can lead to financial vulnerability.
Many states require drivers to purchase liability coverage to drive on public roads. However, liability coverage only covers property repair and medical bills for the victims of an accident that you cause. Therefore, it does not pay for your property repair or medical bills, and it does not pay your passengers’ bills either. This leaves gaps in coverage for both the accident victim and the person who caused the accident.
Damages
The Victim of the Collision
If the at-fault driver has the mandatory limits of insurance coverage, the accident victim can file a claim against the at-fault driver’s bodily injury liability coverage. This covers medical expenses for the driver and his or her passengers. Property damage liability coverage pays to repair or replace property that has been damaged in the collision.
Maine has some of the highest requirements in the country. For example, drivers must carry $50,000 bodily injury liability for one person injured in an accident. However, this may be inadequate if the person’s injuries are particularly catastrophic. For example, medical bills for a traumatic brain injury may come to more than $100,000 in the first week alone. Throughout the person’s lifetime, it may require as much as $3 million, so $50,000 is not nearly enough.
The Cause of the Collision
Drivers are required to take responsibility for the injuries they cause to other people, but they are not required to purchase insurance coverage for themselves, their friends and their family members. This is not necessarily because of negligence. It is because they opt to purchase liability coverage only to keep their costs as low as possible. When they do this, it creates a gap that leaves them unprotected if they cause a collision.
After a collision, the at-fault driver may be hurt, but the liability coverage does not pay his or her medical bills. However, residents can purchase optional coverage that covers their medical bills so that they will not be financially devastated if they cause a collision. One example is “medical payments,” which covers medical expenses for the at-fault driver, his or her passengers and his or her family members.
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Underinsured Motorist Coverage
Some people purchase their state’s insurance requirements, but as we have already seen, the limits can be very low. When an at-fault driver does not have enough insurance to pay the injured parties’ medical bills, this person is known to be “underinsured.” If you have underinsured motorist coverage, it closes the gap between the at-fault driver’s liability coverage and your future medical bills. After the at-fault driver’s bodily liability insurance covers your bills up to the limits of the policy, the underinsured motorist coverage pays the rest.
Uninsured Motorist Coverage
Even though someone’s state may require that they purchase liability coverage so that they can take responsibility for the damages and injuries they cause, some people choose not to do this. If you are hit by someone without liability insurance and this person caused the collision, this is another gap that could leave you financially vulnerable.
You can purchase uninsured motorist coverage from your insurance company to protect you against the scenario described above. This highly important insurance covers the medical bills, lost wages and funeral expenses for you and your passengers. It also covers expenses for injuries from a hit-and-run crash.
If you were hit by an uninsured or underinsured motorist, you will need an experienced car accident lawyer to file a personal injury lawsuit against the at-fault driver.
