Founder
After a car accident, dealing with insurance can feel overwhelming, especially when the costs begin to add up. Medical bills, vehicle repairs, and lost wages can quickly outpace what the at-fault driver’s insurance will cover. If you’re in this situation, it’s natural to worry about how you’ll recover the remaining expenses. The truth is insurance limits don’t always mean the end of the road when it comes to compensation. There are ways to pursue the full amount you deserve, and we can help you understand your options.
Understanding Insurance Policy Limits
Insurance policy limits represent the maximum amount an insurance company will pay for damages in the event of a claim. In a car accident, the at-fault driver’s insurance may have separate limits for bodily injury and property damage. For example, if their policy has a $100,000 limit for bodily injury, that’s the most the insurer will pay for your medical expenses, regardless of the actual costs.
Once these limits are reached, the insurer typically stops paying, leaving any remaining expenses uncovered. This can create a significant financial gap, especially in cases involving severe injuries or extensive damage. It’s important to understand that the policy limit acts as a ceiling, not a guarantee that all your costs will be covered. However, just because the insurance company has paid out the maximum doesn’t mean you’re out of options. There may be additional ways to recover the compensation you need beyond the policy limit.
Situations Where a Settlement May Exceed the Policy Limit
In some cases, the damages from a car accident can far exceed the at-fault driver’s insurance policy limits. This can leave victims facing significant financial shortfalls. Below are some common scenarios where settlement amounts might surpass the available coverage:
- Severe injuries: Accidents that result in life-altering injuries, such as traumatic brain injuries, spinal cord damage, or amputations, often lead to medical bills and long-term care costs that far exceed policy limits.
- Multiple victims: When several people are injured in a single accident, the total damages can quickly add up, pushing the settlement beyond the policy’s cap.
- Extensive property damage: Accidents that involve multiple vehicles or cause damage to expensive property can result in repair or replacement costs that exceed the property damage limit.
- Ongoing medical needs: In cases where the injured party requires long-term rehabilitation or future surgeries, the total medical expenses can go well beyond what insurance will cover.
These situations may require exploring other options for compensation.
Options for Recovering Additional Compensation
When a settlement exceeds the at-fault driver’s insurance policy limits, there are still several options to recover additional compensation. Here are a few paths you can explore:
- Suing the at-fault driver personally: If the driver has personal assets beyond their insurance coverage, you can pursue those assets through a lawsuit. However, many drivers may not have enough assets to make this option viable, so it’s important to assess the likelihood of recovering substantial funds this way.
- Umbrella insurance policies: In some cases, the at-fault driver may have umbrella insurance, which provides extra coverage beyond the standard policy limits. If they have this type of policy, it could help cover the gap between the policy limit and your actual damages.
- Underinsured motorist coverage: If you have underinsured motorist coverage as part of your own insurance policy, you can file a claim with your insurer to cover the difference. This coverage is specifically designed to protect you when the at-fault driver’s insurance isn’t enough.
- Third-party liability: Sometimes, another party may share responsibility for the accident, such as a vehicle manufacturer (if a defect caused the crash) or an employer (if the driver was on the job). In these cases, you can pursue compensation from those additional sources.
Contact an Experienced Thousand Oaks Car Accident Attorney
At Ardalan & Associates, we understand how overwhelming it can be to face financial uncertainty after an accident. Our team will work with you to explore every possible avenue for compensation, ensuring you receive the full amount you deserve. Contact us today for a free consultation to discuss your options.
Ardalan & Associates, PLC is a personal injury law firm based in Thousand Oaks, also serving all of Southern California, including Los Angeles, Ventura, Kern, and Orange County. We are committed to helping clients involved in personal injury accidents seek justice and navigate their legal journey.