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In many states, including California, driving a car without auto insurance is illegal. However, you can not register your vehicle in the form if you don’t have liability coverage.
The insurers work closely with the Department of Motor Vehicles or the DMV to let them know if your coverage or auto insurance has expired or you faltered on your premium payments.
Many often underestimate the benefits of liability coverage. However, these types of coverage protect the at-fault drivers and the accident victims by providing additional liability coverage, more than their primary auto insurance would allow.
An accident victim can file a lawsuit against the negligent party personally if they don’t have enough insurance to cover the damages, but having liability coverage can provide substantial damage coverage by the at-fault driver’s insurance company for the victim.
We have seen an influx in Palos Verdes Estate car wrecks since the advent of work-from-home and COVID-19 lockdowns and a lessening of freeway crash cases at our firm.
Since so many accidents occur close to home, it makes sense to have more than enough coverage to avoid embarrassment and leverage your personal assets like your home! Another benefit of liability coverage is that the insurer will provide for your defense counsel in case of an adverse event.
When an individual buys insurance, there are policy limits on the amount of coverage it provides. In California, the state requires every driver to have insurance policy limits that cover $15,000 in bodily injury coverage per person, $30,000 per accident, and $5,000 in property damage liability coverage.
This might seem enough at first, but the problem begins when auto accidents occur, and the negligent parties fall short on their insurance coverages.
Medical costs may exceed $30,000 if there are severe injuries, and it is common for vehicle repairs and replacements to go well over $5,000.
It doesn’t matter to the victim if you have liability insurance or not when they decide to file a lawsuit against you for the accident. In such cases, having auto insurance can pay for the damages up to the policy limits mentioned in the insurance policy.
Depending on the severity of the car accident, the major injuries, and the medical bills that the victim bears, you may be looking at a serious payoff, and liability insurance can help cover those costs.
However, at times, liability coverage may not be enough, in which case the accident victim can come after your assets, including your home, to cover their damages.
Settlements outside courts are the best way to close a case as there is a high risk of paying a large personal injury claim if you’re taken to trial by the accident victim. If you don’t have enough coverage for your auto accident caused by you, you might be in trouble.
The plaintiff might take the case to court if they have substantial evidence, in which case, when the damages get proven and accepted by the court, you may have to pay significant compensation.
The compensation might max out your policy limits and go beyond that, in which case you have to pay money from your pocket to cover the damages, including the medical expenses of the other driver (accident victim). This could potentially mean selling off your house.
When getting insurance, instead of approaching an insurance agent who will sell you just about anything, contact an expert attorney. They will be better equipped to guide you on the different coverages you can get to secure yourself, such as collision coverage, underinsured coverage, and more.
If you’ve gotten into an accident and are looking for expert legal representation, contact us at (213) 596-9642 and get a free case evaluation with our experienced attorneys. Our Los Angeles personal injury lawyers will evaluate your personal injury case and let you know of the possible legal options.
It would help if you discussed your case with an experienced attorney before admitting fault. Many times, your instinct might tell you that you’re at fault, but upon further investigation, that may not be the case. Our legal teams have contacts with expert investigations to collect evidence and prove your innocence.
We have the right experience dealing with injury victims and understand the stress they go through after car accidents. Let us help you in these tough times by giving you the best possible legal representation in California.
Contact us now for more information at (833) LETS-SUE.
Michael is a managing partner at the nationwide Ehline Law Firm, Personal Injury Attorneys, APLC. He’s an inactive Marine and became a lawyer in the California State Bar Law Office Study Program, later receiving his J.D. from UWLA School of Law. Michael has won some of the world’s largest motorcycle accident settlements.