Uninsured drivers are a major concern for modern motorists. People who do not carry the basic liability insurance required by law can put others in precarious situations if they cause crashes. Thankfully, only a small percentage of drivers eschew coverage entirely.
Underinsured drivers are a more common issue, even if they do not receive the same attention as drivers without insurance. Many drivers only purchase the insurance required by law. If they cause major crashes, the people affected by those collisions may not have access to sufficient financial compensation through insurance alone. Calculating estimated lost wages can help people understand why underinsured drivers are such a serious concern.
Insurance requirements are far too low
The minimum insurance amounts required by the state do not reflect the current cost of medical care or the prevailing wages that adult professionals earn. Many drivers have only the coverage required by law. They carry $25,000 worth of bodily injury coverage to reimburse one person if they cause a crash. Minimum coverage amounts increase to $50,000 if a single incident results in injuries to multiple people.
A middle-class professional who earns $70,000 a year loses $35,000 in pre-tax income after a six-month absence from work. The full amount of coverage provided by the at-fault driver cannot compensate them for the lost income. The same amount is also supposed to pay for medical expenses.
People who carry underinsured motorist protection can limit the chances of catastrophic financial setbacks after motor vehicle crashes cause injuries. Pursuing a personal injury lawsuit is often the best option available if an underinsured driver injures others in a crash.