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What Happens When a Car Accident Exceeds Insurance Limits?
If the cost of your car accident exceeds insurance limits, you have a right to sue the driver who caused your accident. If any other party contributed to your accident or has legal responsibility for the at-fault driver, you may sue them instead of (or in addition to) the at-fault motorist.
Car drivers and other parties must know the financial risks of negligence. Therefore, these parties should not be surprised if you sue to cover your accident-related damages. Rather than handling any necessary lawsuit yourself (a tall task for a non-lawyer), hire a car accident attorney to fight for you.
Insurance Often Covers the Cost of Car Accidents (But Not Always)
Virtually every state in the United States requires motorists to prove they can cover the cost of an accident—or, at least, the cost of an accident up to their policy’s coverage limits.
Car accident victims may seek compensation for their accident-related losses by:
- Filing a claim with the at-fault motorist’s auto insurance company
- Filing a claim with a third-party, non-driver’s auto insurance company (for instance, you might file a claim with Uber’s insurance provider if you were in a rideshare accident)
- Filing a claim with your own insurance provider, which can be necessary in no-fault states like Florida or when the at-fault party’s insurance does not cover all your losses
There are many cases where insurance provides enough compensation for a victim’s losses. There are also many more cases where insurance coverage limits are less than the cost of a victim’s losses, in which case the victim may sue those responsible for the collision.
Suing Is the Remedy When the Cost of Your Accident Exceeds Insurance Coverage Limits
Statistics indicate that the majority of auto accident cases don’t actually require a lawsuit or trial. Most of them end up settling. Yet, what happens in the “average” car accident case—or even most of them—may not be what happens in your case.
If your car accident lawyer determines that coverage limits stand in the way of insurers offering fair compensation, suing may be a necessary course of action. Before your lawyer advises you to sue, they will:
- Study every insurance policy applying to your accident, including your own that covers an at-fault motorist and those covering other parties who are liable for the accident
- Identify coverage conditions and apply them to your circumstances
- Identify coverage limits
- Determine the exact financial cost of your losses and then compare that cost to the coverage limits
Your lawyer may discuss the gap between coverage limits and the financial value of your losses. If the gap is relatively small, you may decide that a lawsuit is not worth the effort or wait. However, if the gap is significant, suing may be an obvious choice.
While the Insurance Company May Defend the At-Fault Party, the At-Fault Party May Have to Pay
Insurance companies have many responsibilities to their policyholders and those their policyholders harm. One of those duties is to defend the policyholder in the case that a plaintiff (like yourself) sues them.
For this reason, the insurance company may be involved in your case even once it evolves from a claim to a lawsuit. However, if your attorney is successful in suing the at-fault party, that party will likely have to pay for damages beyond the limits of their policy.
Lawyers Know When and How to Sue—Hire One for Your Case
There are many benefits to hiring a car accident lawyer. Attorneys know:
- How insurance companies typically handle claims
- How to read insurance policies, which can be dense and complex
- How coverage limits and other policy details apply to car accident victims
- How to value accident victims’ damages
- When it is in a client’s best interests to file a lawsuit (and, conversely, when it’s in their best interest to accept an insurance settlement)
Your lawyer will explain all information to you in a digestible, easy-to-understand manner. This way, you can make an informed decision about whether to pursue a lawsuit against at-fault parties.
You Will Decide Whether to Sue, but Your Lawyer Can Help
Because you are the car accident victim, you will have total authority over whether to sue or accept an insurance settlement. Some information your lawyer may provide that helps you make this decision includes:
- The financial value of your damages versus the amount of compensation insurers are offering
- A realistic, honest assessment of how strong your case would be at trial
- Facts about an insurance company’s reputation that may be relevant to your case
- The pros and cons of suing or going to trial
Car accident victims hire lawyers for many reasons, and the attorney’s honesty is always among those reasons. If you hire an attorney with a strong reputation, you can trust their advice as you make case-related decisions (including whether to sue or go to trial).
How Your Lawyer Will Assist You After a Car Accident
Your lawyer will have a singular goal as your representative. They will do everything within their lawyerly duties to secure the settlement or verdict you deserve.
A car accident lawyer will handle a comprehensive range of responsibilities for you, including:
Communicating with Insurers (So You Don’t Have To)
Insurance companies often end up paying for car accident victims’ (often substantial) losses. Therefore, your attorney will need to:
- Help you determine which insurance companies to seek compensation from
- Determine how much compensation each insurance company owes you
- Ensure all involved insurers have received your claim(s)
- Provide evidence, documentation of your losses, and other relevant information and materials to insurers
Your attorney will likely also need to negotiate a settlement with one or more insurers, as these companies often try to underpay claims.
Determining Why the Car Accident Happened
To seek money for your damages, your lawyer must learn who:
- Caused your accident
- Is financially accountable for your accident-related damages (also known as losses)
The person who caused your accident most likely has financial responsibility for your accident, especially if you decide to sue. However, their insurer, employer, or other parties could also be financially responsible for your damages.
The first step in establishing fault and liability is determining why your car accident happened.
Securing Evidence
Your lawyer does not only need to know who caused your accident—they must also prove it. Your attorney will obtain all evidence that fits into your case, including:
- Eyewitness testimony, as this may provide an objective account of the accident
- An expert’s reconstruction of the collision
- All available videos related to the accident
- A police report detailing the collision and its aftermath
- Photographs of damaged cars
Accident-related evidence is not always available long after a car collision. For this and other reasons, hire your car accident attorney as soon as you possibly can.
Detailing Damages Resulting from Your Accident
Some common ways of proving a car accident victim’s damages include the following:
- X-rays, CT scans, MRIs, and other types of medical images
- Photographs of visible injuries
- Doctors’ documentation of injuries, symptoms, and treatments
- Medical bills
- Your pre-accident income records, which may show much much income you’ve lost because of your injuries
- Invoices and estimates for vehicle repairs, replacement of a totaled vehicle, temporary transportation, and other accident-related property costs
- Your account of how the accident has been emotionally, psychologically, physically, and financially taxing
Some damages are not obvious. For instance, the post-traumatic stress disorder so many car accident victims face may only be apparent to the victim themself. Your lawyer will rely on experts (like mental health professionals) and your own accounts when damages don’t have an obvious financial value.
Calculating the Exact Value of Your Case (Including Short- and Long-Term Damages)
The success of your case comes down to a single question: Did my lawyer obtain the compensation I deserve for accident-related damages?
In order for your lawyer to answer this question with an unequivocal “yes,” they must first determine how much compensation you deserve. Some relevant questions your lawyer will weigh include:
- Did at-fault parties have insurance?
- What are coverage limits on policies related to your accident?
- What is the exact financial value of your damages?
- Will you need to sue to obtain the compensation you deserve?
Attorneys know how to calculate both economic and non-economic damages, including damages you haven’t yet faced.
Retaining Experts to Contribute to Your Claim or Lawsuit
Attorneys don’t do their job alone. They often have other attorneys, paralegals, and support staff to help with car accident cases. Just as importantly, attorneys often hire outside experts to:
- Testify about who caused the car accident
- Explain how the at-fault party acted in a negligent manner
- Help calculate the victim’s short- and long-term damages
- Reconstruct the accident
Experts often lend credibility to a case, as they have unique credentials that can bolster your lawyer’s arguments. You will face no direct cost for such expert services, as such services will be part of your lawyer’s contingency fee agreement.
Negotiating a Settlement on Your Behalf
Lawyers typically aim to settle their car accident cases. This is the quickest path to the client receiving the compensation they need and deserve. Settling also allows the client to avoid the element of risk that is inherent to trials—where a jury or judge decides the case outcome.
Your attorney will present the strongest case they can. Evidence of fault, documentation of damages, and a detailed calculation of your accident-related losses will be important elements of their strategy.
Filing Any Lawsuit You Decide to File
A car accident victim may choose to file a lawsuit when:
- A motorist that hit their vehicle was uninsured (and their own uninsured motorist coverage does not cover the cost of damages)
- Coverage limits on a third party’s policy are lower than the cost of the victim’s damages
- Insurance companies refuse to honor their financial obligations and offer a fair settlement
- Other circumstances make filing a lawsuit the right decision
Your lawyer will have ample experience settling insurance claims, filing lawsuits, and completing trials. This experience will be immensely helpful as you decide how to fight for a financial recovery.
Leading a Trial, If You Decide That Trial Is the Right Option
It is a long shot that your car accident claim will lead all the way to trial. There will be many opportunities for your lawyer to negotiate a settlement before seriously considering a trial. That said, if liable parties refuse to be accountable for the full cost of your damages, you may have little choice but to go to court.
Your lawyer will provide the information you need to decide whether a trial is the right option. If you and your attorney mutually agree that trial is the way to go, your lawyer will represent you in every aspect of your court case.
Damages That Should Be Part of Your Car Accident Settlement or Verdict
Car accidents can be devastating in several ways. Even if you don’t consider the fallout from your accident to be devastating in nature, you are entitled to—and should expect to receive—every dollar you are entitled to. Whether through insurance or a lawsuit, your lawyer will seek fair compensation for:
- Medical costs: Any medical service or item you need because of the car accident will be part of your lawyer’s settlement demands.
- Professional losses: Your attorney will calculate the value of any lost income, lost bonus opportunities, lost earning power, and other professional damages from your accident.
- Pain and suffering: Your lawyer will include physical pain, emotional anguish, psychological distress, and other forms of pain and suffering in your case.
- Vehicle repairs: Your attorney will demand compensation for the repair or replacement of your vehicle, as well as the cost of temporary transportation.
Car accident attorneys also represent clients suffering because of a loved one’s unexpected passing. Your job is to focus on your recovery—physically, emotionally, psychologically, and otherwise. Let your personal injury lawyer be concerned with your financial recovery.
It’s Important That You Hire Your Lawyer Right Away
Your rights are at risk every moment you go without a car accident lawyer. There may also be a deadline for filing your case, so don’t wait to retain your attorney.