An insurance policy’s 3rd party liability coverage ensures the policy holder of the funds needed to cover the costs that arise, if that same policy holder has been found at fault for a given accident. In the absence of such coverage, a liable driver could not protect his or her assets.
When does a policy offer an adequate level of coverage?
The standard level has been 1 million dollars. The injury lawyers in Lethbridge urge their clients to purchase a policy that provides 2 million dollars-worth of coverage. Those same lawyers point to the multiple sources of any claim that might be made, by those involved in a motor vehicle accident.
Possible sources of such a claim:
• A cyclist at the scene of the accident
• A pedestrian at that same site.
• The driver of the other vehicle
• The passenger in the car belonging to the policy holder
• Any passengers in the other vehicle(s).
• Involvement of more than one other vehicle
False belief accepted by too many car owners that buy automobile insurance
Many adults feel that a driver will not be held responsible for extensive losses, unless he or she injures someone with a high-paying job. Such adults have their minds focused on the victim’s possible loss of a current income. The same adults fail to consider the potential loss of a future income.
When can the potential loss of a victim’s future income force the responsible driver to pay a huge amount of money, in the way of compensation?
That would be the case if the injured driver and any passengers were older teens or young adults. At that point, any one of them could have begun a series of courses or training sessions, in order to prepare for a career. A debilitating injury would keep that same victim from pursuing that career. The responsible driver would need to cover the loss of potential earnings.
How insurance companies try to avoid paying such a large amount for 3rd party coverage?
Insurers get adjusters to encourage any claimant to seek an early settlement. At that point, the severity of an injury to the driver or passengers may not be clear. Furthermore, the degree to which it could one day limit the chances for further employment have not been discovered. Consequently, the known costs appear rather low.
If you are the victim of an accident, you should push for recognition of any loss of future earnings. If you were carrying any younger passengers, be sure to seek compensation for their loss of earnings, if they were members of your family. Find a lawyer that stands ready to work with an economist, in order to obtain an assessment of any victim’s potential loss of future earnings.