Car accidents can be highly stressful matters, but dealing with insurance claims can make the situation even worse. Some victims might be unfortunate enough that an underinsured motorist causes them injuries or worse. In this case, the victim may wonder what happens when a car accident exceeds the offending driver’s insurance limits.
This scenario is a valid concern that can leave victims feeling uncertain and anxious about how they will be compensated for their injuries and damages. In such cases, it is crucial to seek a car accident attorney who can address the tricky legal process and ensure you receive the compensation you deserve. Contact an attorney near you to discuss your case and understand your options for pursuing a fair and just resolution.
What Happens When A Car Accident Exceeds Insurance Limits?
When a car accident exceeds insurance limits, the at-fault driver’s coverage may not be enough to fully compensate the victims for their injuries and damages. This can leave victims facing significant financial burdens—medical bills, rehabilitation costs, and lost wages can add up quickly.
In such cases, it is important to understand that the insurance company is only responsible for paying up to the limit of the at-fault driver’s policy. If the damages exceed this limit, the victim may need to seek additional compensation through other means, such as filing a lawsuit against the at-fault driver or exploring other avenues for recovery.
Car Insurance Limits: What to Know
Car insurance limits refer to the maximum amount of coverage an insurance policy provides. In most states, there are minimum car insurance coverages and minimum limits that drivers must satisfy. However, these limits are typically low and may not be enough to cover the expenses or liability in the event of a claim.
Victims may need to consider other options for recovering compensation when a car accident exceeds insurance limits. Regardless of all these options, hiring a car accident attorney will ensure you make the most of each one. These choices may include:
Personal Injury Protection (PIP) Coverage
Some states require drivers to carry PIP coverage, which compensates for medical expenses, lost earnings, and other damages, regardless of who is at fault. This coverage can help bridge the gap when insurance limits are insufficient.
Underinsured Motorist (UIM) Coverage
UIM coverage is an additional option that drivers can purchase to protect themselves if they are involved in an accident with an underinsured driver. If the at-fault driver’s insurance limits are not enough to cover the victim’s damages, UIM coverage can provide additional compensation.
Health Insurance
If you have health insurance, it can help cover some of the medical expenses resulting from a car accident. However, it is important to note that health insurance may have limitations and exclusions and may not cover all the expenses related to the accident.
Pursuing a Lawsuit
If the at-fault driver’s insurance coverage is insufficient to cover your damages, you may need to file a lawsuit against the at-fault driver to seek additional compensation. An experienced car accident lawyer can guide you through the legal process and help you pursue a fair settlement or court verdict.
It is crucial to consult with a car accident attorney to understand your rights and options after a car accident that exceeds insurance limits.
Your Recovery Costs May Be Higher Than The Settlement
When a car accident exceeds insurance limits, the settlement offered by the at-fault driver’s insurance company may not cover your recovery costs. It depends on the severity of your injuries and the long-term impact on your life, but the expenses can quickly pile up.
It is important to consider the full extent of your damages when evaluating a settlement offer. These awards may include not only your current medical expenses but also future medical treatment, rehabilitation costs, lost income, and potential loss of earning capacity. These costs can be substantial, especially if you have suffered severe injuries such as spinal cord injuries, traumatic brain injuries (TBIs), or permanent disabilities.
By working with a car accident lawyer, you can ensure that your recovery costs are taken into account and that you have a better chance of receiving fair compensation. An experienced attorney will work to negotiate a settlement that reflects the true value of your damages and will fight for your rights in court if necessary.
Why You Need a Car Accident Lawyer
When a car accident exceeds insurance limits, hiring a car accident lawyer is crucial to protect your rights and ensure that you receive the compensation you deserve. Here are some reasons why you may need to hire a car accident lawyer:
The At-Fault Driver’s Insurance Won’t Cover Your Damages
If the at-fault driver’s insurance coverage is not enough to cover your damages, a car accident lawyer can explore other sources of compensation, such as your own insurance coverage or other liable parties.
You Have Serious Injuries or a Subsequent Long-Term Disability
Severe injuries can have a shocking impact on your life, both physically, mentally, and financially. A car accident lawyer can pursue compensation for medical expenses, future medical treatment, rehabilitation costs, lost earnings, and other damages arising from your injuries.
Your Own Insurance Company Denies or Underpays Your UIM Claim
Suppose you have UIM coverage, and your own insurance company denies or underpays your claim. In that case, a car accident lawyer can handle the insurance claim process and fight for the compensation you are entitled to.
You Need to Sue the At-Fault Driver for Additional Damages
If the at-fault driver’s insurance coverage is insufficient, you may need to file a lawsuit to seek additional compensation. A car accident lawyer will guide you through the legal process, gather evidence, and advocate for your rights in court.
The Insurance Companies Are Blaming You
Insurance companies often try to shift the blame onto the victim to minimize their liability. A car accident lawyer can help protect your rights and ensure the truth is fully represented, increasing your chances of receiving fair compensation.
Your Case Requires Litigation
If your case litigation to resolve a claim, it is crucial to have a car accident lawyer by your side. They will have the experience and knowledge necessary to oversee the lawsuit process and protect your legal rights.
If your case goes to litigation or even mediation, having a seasoned attorney by your side provides great peace of mind.
What Are Economic and Non-Economic Damages?
When a car accident exceeds insurance limits, victims may be entitled to compensation for both economic and non-economic damages. Understanding these damages is essential when seeking fair compensation for your injuries and losses.
Economic Damages
Economic damages are the quantifiable financial losses you suffered from the car accident. They include:
- Medical Expenses: This includes all medical treatment related to your injuries, such as hospital bills, doctor visits, medication, rehabilitation, and physical therapy.
- Loss of Earnings: If your injuries prevent you from working or result in a loss of income, you may be entitled to compensation for the income you have lost and your diminished earning capacity.
- Property Damage: This includes the repair or replacement costs for the damage to your vehicle and any personal property that was damaged in the accident.
- Other Financial Losses: This can include transportation costs for medical appointments, the cost of hiring household help if you are temporarily unable to perform daily tasks, and any other out-of-pocket expenses related to the accident.
Non-Economic Damages
Non-economic damages are more subjective and are meant to compensate you for the intangible losses you have experienced as a result of the car accident. These damages include:
- Pain and Suffering: Compensation for physical pain and emotional distress caused by the accident and your injuries.
- Emotional Distress: This includes the psychological impact of the accident, such as anxiety, depression, post-traumatic stress disorder (PTSD), and loss of enjoyment of life.
- Loss of Consortium: Compensation for the loss of companionship, support, and services of a spouse or loved one, often awarded in cases of wrongful death or permanent disability.
Punitive Damages
In some cases, where the at-fault driver’s actions were particularly reckless or intentional, the court may award punitive damages. These damages punish the wrongdoer instead of correlating with specific losses.
By working with a car accident lawyer, you can ensure both your economic and non-economic damages are taken into account when seeking compensation for your injuries and losses.
Why You May Need to File a Lawsuit
When a car accident exceeds insurance limits, filing a lawsuit to seek additional compensation may be necessary. Here are some reasons why you may need to file a lawsuit:
- The at-fault driver’s insurance coverage is insufficient to cover your damages.
- The insurance company refuses to negotiate a fair settlement.
- There are multiple parties involved, and liability is disputed.
- The at-fault driver is uninsured or underinsured.
- You have suffered severe injuries or long-term disabilities.
- You have lost a loved one in the accident.
Filing a lawsuit can be a complex and time-consuming process, but it may be necessary to ensure you receive the full compensation you deserve. An experienced car accident lawyer can guide you through each step of the legal process, including gathering evidence, negotiating with the insurance company, and representing your interests in court if necessary.
Additional Third-Party Liability Claims May Be an Option
Sometimes, a car accident victim may pursue other third-party liability claims besides their claim against the at-fault driver. Third-party liability claims involve holding other entities or individuals responsible for their role in the accident.
Examples of potential third parties that may be held liable include:
- Rideshare Companies: If the at-fault driver was operating a vehicle for a rideshare company such as Uber or Lyft at the time of the accident, the company may share liability for the accident.
- Delivery Companies: If the at-fault driver was making a delivery for a company such as Amazon or FedEx, the company may share liability for the accident.
- Government Entities: If the accident was caused by poor road conditions, inadequate signage, or other factors for which a government entity is responsible, they may share liability for the accident.
By exploring third-party liability claims, you increase the chances of recovering the full compensation you deserve for your injuries and damages.
The Right Car Accident Lawyer Can Increase Your Chances of Success
When a car accident exceeds insurance limits, working with a car accident lawyer can significantly increase your chances of success in seeking fair compensation. An experienced attorney understands the legal complexities of personal injury cases and can provide the following benefits:
Legal Representation
A car accident lawyer will advocate for your rights and ensure your best interests are represented throughout the legal process.
Evidence Gathering
An attorney will gather evidence, including accident reports, medical records, witness statements, and expert opinions, to build a strong case on your behalf.
Negotiation Skills
A skilled negotiator, the lawyer will work with the insurance company to secure a fair settlement that reflects the true value of your damages.
Trial Experience
If a fair settlement cannot be reached, a car accident lawyer will have the experience and knowledge to guide you through the trial process and present a compelling case in court.
A Contingency Basis
Most car accident lawyers work on a contingency fee basis, which means they only get paid if they win your case. This arrangement eliminates the financial burden of upfront legal fees and allows you to focus on your recovery.
By engaging the services of a car accident lawyer, you can level the playing field against insurance companies and increase your chances of receiving the compensation you deserve.
Call a Car Accident Lawyer for a Free Consultation
If you have been in a car accident that exceeds insurance limits, seeking legal guidance from a car accident lawyer is crucial. Contact a car accident attorney near you for a free consultation to discuss your case and understand your options for pursuing fair and just compensation. Don’t delay seeking a free consultation, as there may be time limits for filing a claim. Take the first step toward securing your financial peace of mind by contacting a car accident lawyer today.