Drivers in California have to maintain a state license. In theory, keeping their license requires that they follow traffic laws consistently. Drivers have to register their vehicles, keep them in safe operating condition and carry insurance.
People might assume that they have easy access to financial support after a car crash due to insurance requirements. However, contrary to what many people expect, those involved in car crashes sometimes need to take legal action to recoup the expenses generated by the wreck.
Why is litigation sometimes necessary for those dealing with the economic aftermath of a collision?
Insurance requirements are too low
California lawmakers recently increased liability insurance requirements for drivers. Unfortunately, the new requirements still fall far short of the total potential costs of a car crash.
Currently, drivers only need to carry $15,000 in property damage coverage. That may not be enough to replace a totaled vehicle or the contents of the vehicle.
Bodily injury coverage is even more insufficient in cases involving significant injuries. The state only mandates $30,000 in liability coverage if one person gets hurt. After crashes that injured two or more people, the minimum amount of coverage for injury expenses is $60,000.
That coverage must pay for medical costs and help replace lost wages. Those who require hospitalization after a car crash may find that their immediate medical bills exceed the amount of car insurance available. When looking at future medical expenses and lost income, the coverage available may fall far short of an individual’s total losses.
Reviewing the circumstances of a recent car crash can help people evaluate their options for compensation. If the insurance policy of the driver at fault is too low, then a lawsuit may be the best option to cover collision expenses.
