Damage Recovery And Self-Insured Drivers
Most cars registered in the state of Pennsylvania opt to purchase auto insurance from a reputable insurance company. But there are a minority who choose to be self-insured drivers. To do this, there are requirements. You can’t simply just say you are self-insured, you need to complete an application and receive confirmation of your eligibility.
A self-insured motorist is stating that they will be responsible for all of the expenses that would be covered by a conventional policy should an accident occur. This means while a self-insured driver is saving money by not paying regular insurance premiums, they could face thousands if not hundreds of thousands in expenses should a severe accident take place. If you are moving toward damage recovery from a self-insured driver, talk to a Bucks County personal injury attorney about your options.
Income Statement and Financial Responsibility
What you will need in order to apply for self-insurance in Pennsylvania:
- Annual statement, income statement, or balance statement
- Application for self-insurance certificate
- Self-insurance and security agreement
- Form of collateral and letter of credit agreement
The statement of your financial worth needs to be the one from the previous fiscal year. This document is used to show you could pay damages should an accident occur. Basically, the Pennsylvania Department of Transportation is looking for a certain amount for the first vehicle that is self insured and an additional amount for each following vehicle. The first vehicle amount is typically set at $50,000, and any additional vehicles would require an added $10,000 each. All of this information is reviewed by the motor vehicles department, which processes each request.
Individuals and Business Who Choose Self-Insurance
Why self-insurance is an attractive option depends on the interests of the person or business. For instance, if an organization has a fleet of vehicles that are not often used, they may run the cost-benefit analysis and statistics of accident probability and decide it is in their interests to self-insurance. Individuals who opt to be self-insured drivers may be independently wealthy or be unable to access an insurance policy they find desirable, possibly because of cracks in their driving record.
It is important that everyone has the correct amount of coverage to protect themselves and others in the event of an accident. If you were in a collision and find yourself with a lot of expenses and are confused about pursuing recovery, discuss the details of your accident, injuries, and property expenses with a Bucks County personal injury attorney.
Experienced car accident lawyers work on a range of claims every day. Some involved self-insured drivers, others find resolution after extensive negotiations with large insurance companies. Each situation is unique.
Do you have damage recovery questions after you were hit by a self-insured driver? Talk to the seasoned legal team at Kardos, Rickles & Hand. Our attorneys will protect your rights whether the other drivers were uninsured, underinsured, or self-insured. We will work hard to secure the maximum amount possible while you focus on healing. If you sustained a car accident injury in New Jersey or Pennsylvania, reach out today. Call 215-968-6602.