What Happens When Car Accident Claim Exceeds Insurance Limits

insurance policy

It is not enough to have auto insurance; you need proper coverage. Unfortunately, most people try to ‘save money by buying only as per California state law.
However, doing this leaves you vulnerable if you get involved in an accident.
It does not matter how expert a driver you may be. Often, it is not you who causes the accident but the other driver.
You may end up with all the financial burden of an accident without uninsured/underinsured motorist bodily or property damage insurance.
It only worsens things if you get involved in an accident and have serious injuries. Read on to discover what else happens if a car accident claim exceeds the insurance limits.

Insurance policy limits

insurance policy

Now imagine you were involved in an accident that was not your fault. In this case, you can claim for the other driver’s auto insurance coverage that pays for your:

  • Medical expenses
  • Lost wages
  • Pain and suffering

However, the exact amount depends on your medical expenses and the consequences of the injury.
But there is one problem.
All insurance policies have coverage limits, and it is the most the company will pay for a claim. There’s nothing to worry about if the other driver has a massive policy because you will be better compensated.
However, the problem arises with people with minimum coverage. In this case, it can be challenging to reach an amicable settlement.
All states require their drivers to have minimum insurance coverage per state laws. So any injuries occurring beyond minor injuries like cuts and bruises may require more compensation.
Besides, a severe injury keeps you bedridden for a longer time, and you may even require some future physical therapy. And some injuries may even lead to permanent physical disability that is life-changing.

What happens when the car accident claim exceeds insurance limits

early claims

Nothing is more heartbreaking to an accident victim than learning that the other driver is under or uninsured. The victim and their family faces:

  • The trauma of the accident
  • Medical bills and expenses
  • Lost wages
  • Possible loss of job and future earnings

You can file a lawsuit for damages even though it exceeds policy limits. However, there’s no promise that it will be successful.
You may not receive anything if the other driver doesn’t have the funds or sources to compensate you. However, it’s worth discussing with your Glendale auto accident attorney to learn your options.
There is also always the possibility of getting involved with an uninsured driver. If you or anyone else in the car gets injured in the accident, the effects will be devastating.

Why you should have uninsured motorist coverage

Lawsuit Vs. Settlement

The above scenarios prove one thing. While you cannot decide who hits you, you can decide on the financial outcomes of a car accident by having uninsured insurance.
This coverage protects you if an uninsured or underinsured driver hits you. It works even in hit-and-run accidents, giving all the more reason to have this coverage.
It is primarily a necessity if you will not be able to afford the medical expenses and other bills if you get involved in an accident.

Contact your Glendale auto accident attorney for help

You must contact your lawyer as soon as possible if you get involved in a car accident. The need is even more if you are interested in an accident claim exceeding your insurance limits.
The sooner you take action, the better and higher the chances of receiving your rightfully deserved compensation.

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