When you’re involved in a car accident, the amount of insurance coverage available can significantly impact your ability to recover compensation. In serious accidents, your car accident claim may exceed the at fault driver’s insurance limits. In these situations, higher auto insurance limits, whether held by you or the other driver, can make all the difference in how much compensation you ultimately receive.
Auto insurance policy limits refer to the maximum amount an insurance company will pay for a claim under that specific policy. These limits are outlined in the car insurance policy and typically include bodily injury liability coverage, property damage coverage, and possibly comprehensive coverage.
If the accident damage exceeds the at fault driver’s coverage limits, injured parties may be left with substantial medical expenses, lost wages, and property damage costs that are not fully covered.
What Happens When a Car Accident Claim Exceeds Insurance Limits?
In many car accident cases, the damages caused by the at fault party can be greater than their car insurance policy allows. This situation is common in collisions involving serious injuries, permanent disability, or multiple parties. When a claim exceeds insurance limits, the insurance company will only pay up to the maximum allowed by the policy.
If your car accident claim exceeds the at fault driver’s insurance, you may have several legal options, including:
Filing a claim with your own underinsured motorist coverage
Seeking compensation through multiple insurance policies
Pursuing the at fault driver directly for additional compensation
Using your own insurance policy (such as umbrella insurance) for further liability protection
It’s important to understand how insurance limits work to determine where additional compensation may be available.
The Importance of Your Own Insurance Coverage
Many drivers assume the at fault driver’s insurance policy will be enough to cover all their losses. Unfortunately, this is not always the case. This is where your own insurance policy plays a critical role.
Having underinsured motorist coverage (UIM) can help bridge the gap when the other driver’s insurance limits are too low. Your own car insurance coverage, including collision coverage and comprehensive coverage, can also provide financial protection for property damage or personal property loss.
If your insurance policy includes higher limits, you may be better protected in the event of a serious accident. Higher limits offer peace of mind and help ensure you’re not personally liable for uncovered damages.
Working with a Car Accident Lawyer When Policy Limits Are Involved
Auto accident claims that involve policy limits can be a complicated process. An experienced car accident attorney can help you understand your rights, assess the at fault driver’s insurance policy limits, and pursue every available source of compensation.
When your accident claim exceeds insurance limits, your attorney may explore options such as:
Filing a bad faith claim against the insurance company if they fail to pay what’s owed
Investigating whether the at fault driver has personal assets that can be used to satisfy a judgment
Determining if more than one party is liable, allowing you to pursue additional insurance coverage
Negotiating for a policy limits settlement or identifying further liability coverage options
A skilled car accident lawyer will guide you through the legal process, protect your rights, and help you pursue the financial compensation you deserve.
How Crowell Law Offices Explains How Higher Auto Insurance Limits Can Benefit You
Higher car insurance limits provide a greater level of financial protection, whether you’re the at fault driver or the injured party. If your own policy has higher coverage limits, you may be able to recover additional compensation from your insurer after the at fault driver’s insurance has been exhausted.
This is particularly valuable in auto accident settlements that involve serious injuries, non economic damages, or future earnings losses. In cases where auto accident settlements exceed the other driver’s insurance, having your own comprehensive and underinsured motorist coverage is essential.
If you’re unsure whether your current coverage is adequate, reviewing your policy with a knowledgeable attorney or insurance professional is strongly recommended.
Learn more about how higher auto insurance limits may affect your injury claim. Call Crowell Law Offices at (916) 303-2800 to schedule your free, no-obligation consultation. You can also reach us anytime through our contact page. Let us help you take the first step toward justice and recovery.
Higher Auto Insurance Limits and Injury Claims FAQs
What are policy limits in a car insurance policy?
Policy limits refer to the maximum amount an insurance company will pay for a covered claim. These limits apply separately to bodily injury and property damage and can greatly impact how much compensation is available in an injury claim.
What happens if my car accident claim exceeds the at fault driver’s insurance limits?
You may have to pursue compensation through your own underinsured motorist coverage or seek payment from the at fault driver directly. An attorney can help you determine your options.
How can I protect myself if the at fault driver has minimum coverage?
Carry higher limits on your own insurance policy, including underinsured motorist coverage and umbrella insurance. These additional protections can cover what the other driver’s insurance does not.
Can I sue the at fault driver for damages above their policy limits?
Yes, but collecting compensation beyond insurance limits can be difficult if the driver has limited assets. In some cases, a judgment may not be enforceable if the person is considered “judgment proof.”
Why should I consult a car accident lawyer about policy limits?
An experienced car accident lawyer can help you understand the coverage limits in your case, evaluate all available insurance policies, and negotiate with the insurance company to pursue full compensation.
