Home Law Understanding Your Options if the At-Fault Driver’s Insurance Coverage is Not Enough for Your Accident-Related Expenses

Understanding Your Options if the At-Fault Driver’s Insurance Coverage is Not Enough for Your Accident-Related Expenses

by Gerua William

In a car accident caused by another driver, an injured victim can hold the driver liable for their injuries. But, the insurance coverage of this driver may run out before all of your expenses are fully covered. Thankfully, you can file a claim with your insurance provider. Orange County personal injury lawyers can discuss your legal options for pursuing compensation in a free consultation. 

Underinsured Motorist Coverage

California drivers should carry minimum liability coverage which will be used for paying for damages a policyholder may cause to others. A lot of drivers only purchase the minimum coverage required; however, this coverage may not be enough t cover the damages of the victim when an accident occurs. This is the reason the state of California requires insurance carriers to provide underinsured motorist coverage. This coverage will help victims of crashes caused by an underinsured driver. 

State law requires exhausting all applicable insurance coverage before you use your underinsured motorist coverage. Thus, an accident victim must get compensation from the policy of the at-fault driver, up to its limits before they can use their underinsured motorist coverage. Settling less than the policy limits of the other driver may make it impossible for the victim to get compensation through their underinsured motorist coverage. 

When to Go Through Arbitration

An arbitration may be necessary if you and your insurance carrier fail to agree on a compensation amount to resolve your injury claim. Arbitration means bringing in a third party to try to resolve the conflict. Often, you must go through arbitration before you can file a lawsuit against the insurance firm. 

Importance of Having Underinsured Coverage

Insurance providers are required to provide underinsured coverage to their car insurance policyholders; however, the latter may choose not to buy it. But, driving your vehicle without underinsured coverage can put you in financial trouble if you sustain an injury in an accident caused by an underinsured driver. You are likely to suffer losses that are more than what the driver’s policy can cover. If you don’t have this insurance, you may need to pay for your treatment and care out of pocket. This financial burden can be too much for you to handle as you may not be working for a while because of your injury. With the help of your lawyer, you will know what your legal options are and which one is right for you.