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Accident Victims Seek Compensation For Their Property And Bodily Injury Losses From The Insurance Company

Should individuals have a right to sue to collect economic and non-economic damages from guilty parties in auto accidents?  Also at issue is whether the effectiveness of insurance coverage would be improved by curbing litigation and allowing injured parties to collect directly from their own insurance carriers, whether individuals should be  held liable for acts of negligence while operating a motor vehicle, and whether consumers would benefit from a first-party protection plan as opposed to a third-party liability system.Background California’s Financial Responsibility Law requires motorists to carry insurance coverage of $15,000 per individual and $30,000 total as a minimum liability protection against injuries to others that result from negligent operation of a vehicle.  This coverage is called bodily injury (BI) protection.  In theory, it ensures a victim will collect economic damages for quantifiable expenses, primarily medical expenses and lost wages, as well as non-economic damages that directly result from the accident. Non-economic damages commonly are labeled “pain and suffering.” California law also requires motorists to purchase property damage liability coverage (PDL) of $5,000 to cover damage to the innocent victim’s automobile. Those minimum coverage amounts easily could fail to cover all losses in a vehicle accident.  Traditional rules of the tort system govern recovery for auto accident injuries and property damage losses in California.  An injured party may seek compensation for all economic and non-economic losses from the driver who caused the accident.  Accident victims seek compensation for their property and bodily injury losses from the insurance company of the person “at fault” and from that person if damages exceed insurance coverage.  Only victims are paid compensation.  Drivers who are solely responsible for causing accidents are not entitled to any benefits if hurt, unless they have purchased “med-pay” coverage or have their own health insurance policies. There are no theoretical limits on a victim’s right to compensation for the injuries sustained.  The amount of compensation is decided by arbitrators, courts or the parties themselves.If a driver or other injured party is found only partly responsible for an accident, he or she can receive a share of damages to help cover losses.  For instance, if the person is determined to be 25 percent at fault for the accident, his or her share of a damage award would be based on that ratio under the rules of comparative liability.Determination of LiabilityThe critical factor is the determination of liability.  The guilty party pays all expenses, and extensive resources may be used in the quest to determine fault.  What this means in practice is that many victims who suffer injuries in automobile accidents hire attorneys to establish liability and collect a settlement from the guilty party.Department of Insurance data from 1991 shows payments for claims are divided along the lines outlined in Chart 1.  Potential expenses to guilty parties are

If you or your loved one have been in an accident that involved a serious injury, know your legal rights by contacting the nearest Accident Attorney.

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