You are stopped at a red light when another driver crashes into you.

You suffer serious injuries.

Your vehicle is damaged.

You miss work.

Medical bills begin arriving.

The other driver caused the accident, so their insurance should take care of everything, right?

Not necessarily. Sometimes there is simply not enough insurance to cover what a serious crash costs.

One of the difficult realities of serious car accidents is that the driver responsible for the collision may not have enough insurance coverage to fully address the losses caused by the crash.

In some situations, the driver may have no applicable insurance at all.

This is when accident victims often learn that one of the most important insurance policies after a collision may actually be their own.

At Fault but Not Enough Insurance? Two Different Issues

Determining who caused an accident is only one part of a personal injury claim.

Another important question is:

What insurance coverage is available?

Imagine that someone causes a serious collision and the injured person requires emergency treatment, ongoing medical care, rehabilitation, and substantial time away from work.

Even when responsibility for the crash appears relatively clear, available insurance coverage can become a major issue.

An insurance company generally does not provide unlimited funds simply because its insured caused an accident.

The applicable policy has limits.

That means understanding available insurance coverage can become an important part of evaluating a serious injury claim.

What Is an Uninsured Driver?

An uninsured driver is generally someone who does not have applicable automobile liability insurance covering the accident.

When an uninsured driver causes a collision, the injured person may understandably think:

“Then there is no insurance claim.”

That is not always the end of the analysis.

Depending on the injured person’s own automobile insurance policy and the circumstances of the accident, uninsured motorist coverage may potentially become relevant.

This is one reason you should not automatically assume there are no options simply because the other driver says they do not have insurance.

What Is an Underinsured Driver?

An underinsured driver is different.

The driver may have insurance, but the available liability coverage may not be sufficient to address the losses resulting from a serious accident.

For example, an injured person could face significant medical treatment, lost income, and other damages that exceed the amount of liability coverage available through the responsible driver’s policy.

Depending on the circumstances and the injured person’s own policy, underinsured motorist coverage may potentially provide an additional source of coverage.

The exact application of that coverage depends on the policy and facts involved.

When there is not enough insurance, the rules for this coverage come from California Insurance Code section 11580.2. It requires auto liability policies issued in California to include uninsured motorist coverage unless the named insured deletes or reduces it by written agreement. Its underinsured motorist provisions generally do not apply until the liability limits of the at-fault driver’s policy have been exhausted by payment of a judgment or settlement.

This Is Why Your Own Auto Insurance Policy Matters

People often purchase automobile insurance and then place the policy documents somewhere they rarely look at again.

After an accident, that policy deserves attention.

Do not only ask:

“Who insures the other driver?”

Also ask:

“What coverage do I have?”

Your own policy may contain different types of coverage that could become relevant depending on the accident.

The declarations page can provide a useful starting point because it generally identifies the types and limits of coverage purchased.

If you do not understand your policy, ask questions.

Insurance is much easier to evaluate before an accident than after one.

Do Not Automatically Accept the First Available Settlement

If the other driver’s insurer offers its policy limit, an accident victim may understandably want to accept it immediately.

But serious injury cases can involve additional insurance and legal considerations.

Before signing a release or accepting a settlement, make sure you understand what rights you may be giving up.

A release may affect the ability to pursue additional recovery.

This can become especially important when uninsured or underinsured motorist coverage may be involved.

The correct procedure depends on the specific circumstances and insurance policies involved.

Review Your Coverage Before You Need It

You do not have to wait until an accident happens to learn what your insurance policy contains.

Contact your insurance professional and ask them to explain your coverage.

Questions may include:

  • How much liability coverage do I carry?
  • Do I have uninsured motorist coverage?
  • Do I have underinsured motorist coverage?
  • What are my coverage limits?
  • What deductibles apply?
  • Are there other optional coverages I should understand?

The goal is not simply to find the cheapest policy.

It is to understand what protection you are actually purchasing.

After an Accident, Preserve Insurance Information

Following a collision, gather and preserve:

  • The other driver’s insurance information
  • Driver’s license information
  • Vehicle information
  • Police report information
  • Photographs
  • Witness information
  • Your own insurance policy information
  • Medical records and bills
  • Documentation of missed work
  • Correspondence from insurance companies

Do not assume the insurance information exchanged at the scene provides the complete picture.

Additional investigation may be necessary.

Serious Injuries Can Expose Insurance Gaps

Minor vehicle damage and limited medical treatment may create one type of claim.

A catastrophic accident can be completely different.

Hospitalization, surgery, rehabilitation, future treatment, lost income, and long-term limitations can create losses that significantly exceed available insurance coverage.

That is why insurance coverage analysis can become an important part of a serious personal injury case.

At Khashan Law Firm, we look beyond the basic question of who caused the accident.

We also examine what potential sources of insurance coverage and recovery may be available based on the circumstances.

A serious accident can expose insurance problems you never knew existed.

Do not assume that the other driver’s insurance is the only potential source of coverage, and do not assume that being clearly injured automatically means enough insurance exists to cover every loss.

If you or someone you love has been seriously injured in a California motor vehicle accident, contact Khashan Law Firm for a FREE consultation. Our personal injury team can review the circumstances, available insurance information, and potential options.

Khashan Law Firm proudly serves clients throughout Ontario, Murrieta, Rancho Cucamonga, Temecula, the Inland Empire, Southern California, and communities across California. Hablamos EspaƱol. (866) 34-INJURED