What Happens When a Car Accident Claim Exceeds Insurance?
Car accidents can be devastating and often result in injuries, damages, and losses. When an accident occurs, the at-fault driver’s insurance company will usually cover the cost of damages and injuries up to their policy limit. However, in some cases, the accident cost may exceed the insurance policy limit. This is where things can get complicated, and it’s essential to understand your options if you find yourself in this situation.
In this post, we’ll discuss what happens when a car accident claim exceeds insurance and what steps you can take to protect your rights and seek fair compensation.
Understanding Insurance Policy Limits
Insurance policy limits refer to the maximum amount an insurer will pay for a claim or accident. Every insurance policy has a limit, as stated in the policy agreement. When an accident occurs, the insurance company investigates the claim and determines the extent of the damages and injuries. They can then offer a personal injury settlement to the injured party in an amount up to the policy limit.
For instance, if the policy limit is $50,000, and the damages and injuries resulting from the accident total $75,000, the insurance company will pay only $50,000. The at-fault driver might be responsible for paying the remaining $25,000 out of pocket.
When a Claim Exceeds Insurance Policy Limits
When the damages and injuries resulting from an accident exceed the insurance policy limit, the at-fault driver may have to pay the remaining balance out of pocket. This can be a significant financial burden, and many people do not have the money.
In these cases, the injured party may consider taking legal action against the at-fault driver to recover the remaining balance of the damages and injuries. They can do this through a personal injury lawsuit.
Filing a Personal Injury Lawsuit
If you are hurt in a car crash, and the at-fault driver’s insurance policy limit does not cover the full extent of your damages and injuries, you may be able to file a personal injury lawsuit to recover the remaining balance.
To file a personal injury lawsuit, you will need to hire a personal injury attorney with the experience to take on your case. Your attorney will investigate the accident, gather evidence, and build a case to prove that the other driver was at fault and that you are entitled to compensation for your damages and injuries.
In general, to win your personal injury lawsuit, you will need to establish the following:
- Duty of Care: You must show that the at-fault driver had a duty of care towards you as a driver on the road.
- Breach of Duty: You must prove that the at-fault driver breached that duty of care by acting negligently or recklessly
- Causation: You must show that the breach of duty by the at-fault driver caused the accident and your injuries.
- Damages: You must prove the extent of the damages that you have incurred, including medical bills, lost wages, and pain and suffering.
Collecting a Personal Injury Judgment
If you are successful in your personal injury lawsuit and receive a judgment against the at-fault driver, you may still need to collect the compensation owed to you. Unfortunately, collecting on a judgment can be difficult, especially if the at-fault driver does not have the financial resources to pay.
In these cases, your attorney may recommend other options, such as negotiating a payment plan or seeking a lien against the at-fault driver’s assets. Your attorney can guide you through the process and pursue fair compensation for your injuries and damages.
Get an Attorney’s Help with Your Personal Injury Claim
It is essential to understand insurance policy limits and what happens when a claim exceeds those limits. If you are hurt in an accident, and the damages and injuries exceed the insurance policy limit, you may be entitled to file a personal injury lawsuit to recover the remaining balance. An experienced personal injury attorney can help you navigate the legal system and seek fair compensation for your damages and injuries.
Contact Loewy Law Firm Today
Car accidents can be costly, both in terms of physical and financial damages. When an accident occurs, it’s important to understand your options and know how to protect your rights. If the cost of the accident exceeds the at-fault driver’s insurance policy limit, you may be able to use a personal injury lawyer to file a personal injury lawsuit to recover the remaining balance. Contact the Loewy Law Firm for help with your personal injury claim today and to schedule a free consultation. Our legal team has many years of combined experience and is ready to assist you with your injury lawsuit needs.