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How Car Insurance Affects Car Accidents - What to Know

Mar 25, 2019
Regardless of who is at fault in a car accident, at least one insurance company will need to pay out a settlement or a court judgment. Whether or not coverage is provided, it is an essential issue in car accident cases. There are different situations and reasons that apply when it comes to coverage. The most critical component of any insurance claim or car accident lawsuit is the amount of available insurance coverage.

Finding out whether or not there’s coverage

If the person who hit you only has a minimal amount of coverage, then who is at fault, how bad the accident was, and how bad your injuries won’t matter because you will not get much compensation with minimal coverage from the other party. However, if you carry uninsured motorist coverage, then you can file a claim against your own insurance company for the entire amount of damages, to your coverage limit, apart from compensation money you receive from the other party’s insurance.

This is indeed the only alternative to cases where the driver does not have enough insurance or sufficient assets to make a lawsuit worthwhile. Once you’ve exhausted your UIM coverage limits, you may be all out of options. It is also possible that the person who hit you might have the assets to cover your losses, but it is unlikely that a person who does not have car insurance would have a lot of extra money sitting around to pay off a court judgment.

Available insurance in the case of a car accident

If you get hit, the accident was the other driver’s fault, and you are seriously injured, to the point where your lawyer advises a very fair settlement that can be covered by the defendant’s automobile insurance, then your case will proceed as usual. This means that your lawyer will prepare your case, make a settlement demand, and settle the case without a trial, hopefully. But if the insurance coverage is not available by the defendant, the adjuster will tell your lawyer that the defendant only has a certain amount in liability insurance, which, in that case, will change your million dollar settlement into the amount of money the defendant has.

Underinsured motorist coverage

The only way you will have adequate coverage for your losses is if you have a significant amount of underinsured motorist coverage. In this case, your case will proceed as normal. Your lawyer will settle with the defendant for the policy limits, then file a claim against your insurance company. You will then prosecute the underinsured claim against your own insurance company until the adjuster is convinced that there is truly a million dollar case.

Your insurer might only have to pay you the policy limits when your case is over. This means you will have only recovered a bit on the dollar for your case. This is why available insurance plays a huge role in any car accident. Getting hit by an uninsured driver or one with minimal insurance coverage can be risky. This is why it’s important to carry a significant amount of motorist coverage.

If you’re looking for a car accident attorney in Toledo, Ohio – get in touch today! We’re happy to help.
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