Douglas R. Horn is an attorney with The Horn Law Firm in Missouri. Since 1991, his practice has focused on plaintiff personal injury law, including cases involving motor vehicle collisions. He has also worked on highway safety and driver protection initiatives.
I had a chance to interview him to learn about insurance and things to consider after an accident.
Thank you for the opportunity to provide additional comments regarding the financial risks motorists face following a serious automobile accident. Below are my responses to your questions.
Why is it important for people to be aware of the financial implications of a crash before one occurs?
The most important reason is simple: you cannot buy insurance for an accident after it happens. If you are seriously injured by an uninsured driver or someone who does not carry enough insurance, your own uninsured and underinsured motorist coverage may become critical to your financial recovery.
People should review that protection before an accident occurs and consider whether they have enough coverage for a serious injury, an extended medical recovery and a substantial period away from work. Once the crash occurs, it is too late to increase the insurance coverage available for that loss.
What are some unexpected expenses that can come up following a major accident?
One area people often overlook is the cost of replacing things they normally do for themselves and their families.
A serious injury may prevent someone from cleaning and maintaining the home, driving family members, caring for children or performing other household and family responsibilities. When an injured person cannot perform those services, someone else may have to be hired or other arrangements made.
There can also be transportation expenses, medical-related out-of-pocket costs, and temporary accommodations that become necessary during recovery. These expenses can become particularly significant when a medical recovery lasts several months rather than several weeks.
What factors contribute to a rise in expenses following an accident?
The seriousness of the collision and the nature and extent of the injuries are major factors. More violent impacts can produce more significant injuries, longer medical recoveries, greater medical expenses and longer periods away from work. That is the circumstance we are in now-there are simply more dangerous drivers on the road that cause more violent collisions. This results in more serious injury and longer medical recovery. Longer medical recoveries are very costly..
The location and type of injury also matter. Head, neck and brain injuries, including concussions, can require specialists, diagnostic testing, therapy and extended rehabilitation. At the same time, the general cost of medical care continues to make a serious injury increasingly expensive.
A traumatic injury can create a substantial disruption of everyday life. The longer the medical recovery and the greater the disruption, the greater the potential financial consequences.
How can consumers make sure that their coverage matches their expectations?
People sometimes think primarily about automobile insurance as protection for damages they may cause to someone else. But they should also ask an equally important question: What insurance do I have to protect myself and my family if someone else seriously injures us and does not have enough insurance?
That is where uninsured and underinsured motorist coverage becomes so important.
Consumers should consider what a serious accident could mean under their own circumstances—their income, family responsibilities, children, household obligations and their ability to withstand several months of medical recovery or lost income.
I generally recommend that motorists consider carrying at least $100,000 in uninsured and underinsured motorist protection, and potentially more depending upon their circumstances. The objective is to have sufficient protection in place before an accident occurs so that another driver's lack of adequate insurance does not become a long-term financial set back or the injured person and his or her family.
Additional Comment / Broader Perspective
There is a larger issue that I believe is important for consumers to understand.
The cost of being seriously injured in an automobile accident has increased at the same time that the risk of being hit by someone without sufficient insurance has increased.
We are seeing several risks converge: dangerous driving and violent collisions can produce more serious injuries; uninsured or underinsured motorists may leave inadequate insurance available to compensate the injured person; and the financial consequences of a serious injury—from medical expenses and lost income to an extended recovery and additional household and family expenses—can be substantial.
That combination creates what I have described as a “new universe of risk” on the road.
For consumers, the practical lesson is straightforward: automobile insurance should not be viewed solely as protection against the damage you might cause. It should also be viewed as an important part of protecting yourself and your family from the financial consequences of a serious accident caused by someone else.
And that protection has to be put in place before the accident occurs.
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