Insurance Coverage Following an Annapolis Car Accident
The period of time immediately after a car accident can be quite stressful. It is difficult to properly maneuver the legal process without encountering hurdles in the road, and the frustrations can be quite overwhelming.
One of the most important elements of a car accident claim is handling insurance. Determining the coverage of auto insurance after a car accident can be tricky, and it can be incredibly difficult talking to the insurance company. Because of this, it is important to contact an Annapolis car accident attorney immediately, who can help navigate these roads with you, and assist in providing you with the best outcome for your case.
Following An Accident
Determining auto insurance coverage immediately after an accident is crucial. If an individual is a victim of an accident, then the at-fault party’s liability coverage will provide compensation for both economic and non-economic damages. This includes medical bills, lost wages, pain and suffering, and any other harms and losses that had been suffered due to the collision. These damages are up to the limits of the insurance coverage that has been purchased.
In Annapolis, there is only a statutory requirement to cover or to carry a minimum coverage of $30,000 for one person injured in an accident, and $60,000 for multiple persons injured in an accident. These are the limits of the coverage of insurance and is the minimum coverage required.
Buying Protection
It is important to act in an individual’s own protection when buying insurance, such that the individual carries limits that will protect them under specific circumstances. If an individual is at-fault in an accident, they will want a sufficient amount of insurance that will protect that individual against getting a judgment against them personally.
This will not be covered by insurance, and therefore exposes the individual to personal liability for any judgment obtained in excess of the amount of insurance that the individual carries. If an infringement is rendered against an individual, their personal assets and wages are subject to attachment to satisfy any judgment rendered in excess of the available insurance that the individual carries.
Similarly, if another party is at-fault and the accident causes injury to an individual, and the at-fault party purchases the minimum amount of insurance required, then perhaps the injured individual is not going to be protected. This is because the scenario of trying to go after people on a judgment that has been rendered in court in excess of the amount of insurance is not very easy.
Recovering Damages From Insurance
It is not simple to recover against an at-fault party because many people are not financially able to satisfy a judgment of a large sum. This may be because an individual does not make that much money, or because they do not have assets of any significant value. This is incredibly important to consider when determining the amount of coverage an insurance company will provide.
Filing Bankruptcy
In the circumstance that the at-fault individual is not particularly financially well off, or has the available resources to be able to satisfy a personal judgment against them in excess of the amount of insurance that they carry, they have every incentive and ability to file bankruptcy.
This is something which an individual can do for about any judgment rendered against them. It will discharge that judgment, and they will have no responsibility to pay that judgment. Typically in most bankruptcy proceedings, the exception to that rule is if an accident has been caused by drunk driving. Usually, this cannot be discharged in bankruptcy.
Under all of those circumstances, including minimal coverage and the inability to satisfy a personal judgment, it is important for an individual to carry an amount of insurance to protect their interests if they are at fault in an accident. This is done so that the individual is not subjected to a judgment that is satisfied by going after an individual’s personal assets.
Uninsured and Underinsured Motorist Coverage
An individual can also obtain uninsured or underinsured motorist coverage up to the amount of liability coverage that they carry on their own policy. It is advisable not to carry minimum coverage of 30/60, $30,000 and $60,000. It is most advisable for an individual to carry higher insurance to protect themselves.
Further, this is advisable in the circumstance that an at-fault party has a minimum coverage, and minimal wherewithal to satisfy a judgment personally. Also, an individual can obtain and purchase uninsured and underinsured motorist coverage up to the same amount of the liability coverage that they have previously purchased.
If the At-Fault Party has Less Coverage
If an individual purchases $100,000/$300,000 in liability coverage, they are eligible to obtain that amount in uninsured under insured coverage. That coverage means that if the at-fault party has less coverage than the individual on their uninsured or under insured motorist coverage, such that either they do not have insurance at all or minimal coverage and less coverage than the uninsured individual has purchased, the uninsured individual can go against their own uninsured/underinsured motorist coverage for the difference.
That protects the individual in the circumstance that the at-fault party does not carry sufficient insurance to cover the damages sustained, and the accident does not have the wherewithal to pay a judgment in excess of the amount of insurance that they carry.
Use as Protection
The uninsured/underinsured motorist coverage under an individual’s policy is fairly inexpensive coverage, and it is an absolute necessity to carry high limits, as high as possible and affordable. It will protect any individual in the event that an at-fault party cannot promptly compensate them through insurance.
If so, an individual can seek and obtain compensation under their own coverage without any effect on their rates whatsoever, for the contractual amount of uninsured/underinsured motorist coverage that a person has under their own policy.
Advice of an Attorney
It is a hard lesson to learn being involved in an accident where an individual has serious injuries and the other party does not have enough coverage and financial ability to pay. There is nothing to be done to recover anywhere near the value necessary, and appropriate for the value of the claim due the serious nature of the injuries that have been suffered at the hands of the at-fault party.
The best advice that an attorney can give is that an individual should carry the maximum amount of insurance possible. It entitles an individual to obtain an umbrella policy of a very high amount, to protect them in the event that they are the at-fault party.
All of those issues are very important to understand in terms of insurance coverage, both what at-fault party’s coverage is available and what safeguards should be taken to protect an individual’s interests.