Some car crashes result in major expenses. When people sustain significant injuries in a collision, they may require emergency medical care. They may face medical costs as well as lost wages. People generally recognize that collisions producing injuries could lead to litigation.
However, there is often a presumption that insurance can cover property damage expenses. Contrary to what people might expect, insurance coverage isn’t automatically adequate to offset property damage expenses following a car wreck. Since the state only requires $10,000 in property damage coverage, crash expenses can sometimes go beyond what insurance can pay.
The three scenarios below are among the most common situations in which people may need to consider litigation to recoup property damage expenses after a wreck.
1. When the vehicle is new or foreign
Someone driving a very old vehicle can potentially replace or repair it using nothing more than the $10,000 in property damage coverage provided by basic policies. However, a newer vehicle might cost substantially more to repair or replace. Imports and other prestige vehicle models, such as classic cars or sports cars, could also have far higher repair costs than people initially anticipate.
2. When the vehicle has undergone modifications
Most people drive vehicles exactly as the factories produce them. However, some people need their vehicles to accommodate functional limitations.
Families can adapt an existing van to make it wheelchair accessible if someone in their family relies on a wheelchair for daily life. If people rely on specialized Transportation because of medical challenges, the cost of repairing or replacing the vehicle could easily exceed the baseline property damage coverage required by law.
3. When there is secondary property involved
Many professionals use their vehicles for work. Sales professionals, home health aides and various blue-collar professionals may carry costly equipment in their vehicles that can help them do their jobs. Electronics, power tools and other equipment can contribute toward the total property damage expenses in a car crash. They can theoretically push the total losses beyond the amount of insurance available.
Having help when estimating crash costs, negotiating insurance settlements or preparing for litigation can help people limit the financial challenges that follow a motor vehicle collision. Property damage losses can be costly enough to make litigation necessary in some cases.