When another driver causes an accident, the amount of compensation you can get for your injuries may depend on their auto insurance coverage limits. So, what happens when a car accident claim exceeds insurance limits? You have options to get the compensation you deserve, either by filing a lawsuit or making a claim with your own insurance company.
What To Do When Your Accident Claim Exceeds Insurance Policy Limits
When your car accident claim is larger than the at-fault driver’s coverage limits, it means their insurance isn’t enough to fully compensate you for the total cost of your injuries and losses. For example, if the other driver has a coverage limit of $50,000, but your medical bills, lost wages and other damages add up to $75,000, you’ll only receive up to $50,000 from their insurer.
The remaining amount becomes your responsibility to pursue through other routes. This situation can feel daunting, but understanding your options and rights can make it easier to find the best path toward fair compensation.
Negotiate With the Other Driver’s Insurance Company
Dealing with the at-fault driver’s insurance company is always a delicate process. Even though it’s necessary to contact the other driver’s insurer if you’re making a claim with them, you should be aware that their top priority is to protect their own interests.
If the insurance company offers an insufficient settlement, do not hesitate to reject the offer and negotiate for more suitable compensation. Keep in mind, though, that it’s typically not possible to secure a higher settlement than what the at-fault driver’s coverage limit allows. If the policy does not fully cover your damages, you should be prepared to pursue other methods of compensation.
It’s always a good idea to consult with a car accident attorney before starting the claims process. Your lawyer can advise you on what evidence to collect beforehand and what you should or should not say to the insurance company. A lawyer can even handle the entire claims process on your behalf if you prefer.
Turn to Your Own Insurance Provider
When a car accident claim exceeds insurance limits, the most straightforward solution is to file a claim with your underinsured motorist coverage. If your auto insurance policy includes this coverage, it will make up the difference between the other driver’s coverage limits and your actual damages.
Uninsured/underinsured motorist coverage can also apply if the at-fault driver’s insurance company denied your claim. Always consult with your attorney to fully understand the options available to you.
Sue for Additional Compensation
If the at-fault driver does not have adequate insurance to cover your damages, you have the option to sue them directly for compensation. If this lawsuit is successful, it means that the at-fault driver must compensate you for your damages using their own finances or assets rather than relying on their insurance provider.
However, it’s important to consider the timing of filing a lawsuit. In most cases, you cannot sue someone after settling with their insurance company. This is because most settlement agreements include a “release of liability” clause, which states that the plaintiff cannot pursue additional legal action for the same accident.
Sargon Law Group Can Help With Your Car Accident Claim
At Sargon Law Group, we’re dedicated to helping accident victims in Arizona, New Mexico, California and Colorado. We understand how worrying it feels when your car accident claim exceeds insurance limits. You might face mounting medical bills or lost wages, and the uncertainty can feel overwhelming.
Our car accident attorneys want to give you clarity about what happens in these situations and address any other concerns you have. Contact us to schedule a free consultation to explore your legal options and move forward with confidence.