Legal Steps and Options When A Car Accident Claim Exceeds Insurance Policy Limits
Have you been in a car accident and your losses are more than the at-fault driver’s insurance coverage? Don’t worry! This guide is here to help you understand what happens when car accident claims exceed insurance limits and how to deal with this situation.
We’ll explore your options to help you get the car accident settlement you deserve. You don’t have to face the financial strain alone.
Understanding Insurance Policy Limits
Insurance policy limits are the maximum an insurer will pay for a claim. When you buy car insurance, typically, you choose limits for bodily injury and property damage.
Bodily Injury (BI) coverage
This pays for the injuries you cause to others in an accident, this includes:
- Medical expenses
- Lost wages
- Pain and suffering
Property Damage (PD)
Pays for damage you cause to someone else’s property, like their car or fence.
In California, you have to meet the state’s minimum requirements. You can choose higher limits for better protection. This way, you can make the best choice for your needs.
Car Insurance Minimum Limits in California:
California law mandates liability insurance as the bare minimum for drivers. This coverage protects you financially if you harm others or damage their property in a crash. However, it does not cover your injuries or vehicle damage.
Minimum Liability:
- $15,000 per person for BI
- $30,000 per accident for BI
- $5,000 for property damage
If the damages after an accident exceed this limit, you could be responsible for the remaining costs. Insufficient insurance coverage can spell financial disaster as it could drain your personal assets.
Wise drivers review their policies regularly, assessing if their coverage meets current needs. Higher limits provide a stronger safety net.
When filing a car accident claim that exceeds insurance limits, it’s essential to explore other legal options to get full compensation for damages.
What Happens When Claims Exceed Policy Limits
When your car accident claim exceeds policy limits, the insurance process becomes more complex. First, the insurance company pays up to the policy limits. After that, if your damages are more than the insurance covers, you have a few options.
- You can negotiate with the at-fault party for the remaining amount
- Use your underinsured motorist coverage, or
- File a lawsuit to seek additional compensation.
The insurance company’s role ends once they pay the maximum amount. You could explore these other avenues to cover the excess damages.
Legal Options for Accident Victims
If your claim exceeds the at-fault driver’s auto insurance limits, you have options to pursue more compensation.
One option is to seek payment from the at-fault party’s personal assets, which may cover the remaining damages.
Another option is to use your underinsured motorist coverage. It can help bridge the gap between the at-fault party’s insurance and your total expenses.
An experienced car accident lawyer can guide you through filing a lawsuit, if needed. They will help you explore all options for compensation.
Here are some ways an experienced attorney can provide critical support:
- Detailed Assessment: A lawyer can take a close look at your case to find all possible ways you could receive compensation. This includes checking other policies or looking for additional parties who might also be responsible.
- Negotiation Expertise: Lawyers are great negotiators who work with insurance companies and other parties. They strive to reach a settlement that goes beyond the original policy limits. This collaborative approach can help avoid the need for a lengthy court process.
- Litigation Support: If negotiations do not result in a good settlement, your attorney can file a lawsuit for you. They will manage all aspects of the litigation process, from filing the suit to representing you in court.
- Asset Investigation: If the insurance from the person at fault isn’t enough, our attorneys can look into their personal assets. We check if they have property, cars, or valuable items that could be used to pay for damages. If they have these items, we can use them to cover the costs. This helps ensure that all damages are paid for. This way, we can explore all possible options to support your case.
- Strategic Advice: Lawyers can help you understand if seeking more compensation beyond the policy limits is a good idea. They will share their insights about the legal process and what you might realistically expect based on their experience.
- Comprehensive Claims Management: Our team will take care of all your filings, paperwork, and deadlines for your claim. We are here to help make your case as strong as it can be while following all the necessary legal steps.
Getting a personal injury attorney involved early can help you get the compensation you deserve. It also gives you peace of mind, so you can concentrate on your recovery. Meanwhile, our legal team takes care of the details of your claim.
Consequences for At-Fault Driver
Accidents happen, but consequences linger. Your insurance provides a shield, yet it may not cover all damages. When costs exceed your policy limits, personal assets become vulnerable.
The at-fault party in an accident could have various types of assets at risk, including:
- Real Estate: Homes, rental properties, or land owned by the at-fault party.
- Vehicles: Cars, motorcycles, boats, and other vehicles.
- Bank Accounts: Savings, checking accounts, and other financial accounts.
- Investments: Stocks, bonds, retirement accounts, and other investment vehicles.
- Personal Property: High-value items such as jewelry, electronics, and collectibles.
- Business Interests: Ownership stakes in businesses or companies.
Case Example
When Jane, our client, got into a car accident, the property damage far exceeded the at-fault driver’s policy limits of $5,000. She faced a staggering $12,000 in damages. Unfortunately, the person at-fault had no additional assets to go after. However, Jane’s home insurance policy had her back, with property damage coverage that we helped her use to file a claim.
This clever move by our attorneys covered the remaining $7,000. She no longer had to worry about this financial burden. Our team’s dedication leaves no stone unturned for our clients!
Steps to Take After an Accident
Knowing the right steps to take after a car crash can make a huge difference in your recovery and legal process.
- Call the Police: Reach out to the police to report the accident as soon as possible. This will help create an official record of what happened.
- Document the Accident: Take photos of the scene, gather witness statements, and keep all relevant information organized.
- Collect Witness Statements: Speak to any witnesses and record their accounts to support your version of events.
- Seek Medical Attention: Even if you feel fine, getting a medical checkup can uncover hidden injuries. Furthermore, it can help your claim if any injuries develop latter. Keep copies of all medical records.
- Contact an Attorney: It’s a good idea to contact a personal injury attorney soon. They can help you understand your rights and offer you valuable advice.
- File Claims Properly: Make sure to file all insurance claims and reports accurately and on time. This will help you receive your compensation quickly and smoothly.
When A Car Accident Claim Exceeds Insurance Policy Limits
If you find yourself with damages exceeding the policy limits, don’t go at it alone. Contact a personal injury attorney who can provide you with the right guidance and support.
At El Dabe Ritter Trial Lawyers, we fight tirelessly to secure fair compensation for our clients. We see to it that you are not shortchanged by insurance companies or negligent parties. More than just personal injury lawyers, we are experienced trial attorneys ready to take your case to court if necessary.
Our determination and preparedness mean we are fully equipped to handle every aspect of your claim, from negotiation to litigation.
We’ve secured millions for clients, from car accidents to motorcycle accidents. Don’t face this alone.
Call now for a free consultation and discover the El Dabe Ritter difference. Your future deserves our expertise.