When Car Accident Claims Exceed Insurance Limits

Our team of Birmingham car accident attorneys has seen many cases where the cost of losses and injuries resulting from a car accident exceeds the limits of the at-fault driver’s insurance policy. In these types of cases, it can be difficult for the victim to recover the full amount of compensation that they deserve.

In this blog post, we’re going to explore some of the options available to those who find themselves in this unfortunate situation. If you’ve been hurt in a car accident that wasn’t your fault, don’t hesitate to get the help you deserve.

Understanding Insurance Limits

When you purchase car insurance, you have the option to choose the amount of coverage you want. The most common types of coverage are liability, collision, and comprehensive. Liability coverage is the minimum required by law and covers property damage and injuries that you cause to others in an accident. In Alabama, those limits are $25,000 per person for bodily injury and up to $50,000 per accident. The required liability limit for property damage is $25,000. Collision and comprehensive coverage are optional and cover damage to your vehicle.

Liability coverage is typically sold in the form of split limits, meaning there are separate limits for bodily injury and property damage. For example, a policy may have limits of $50,000 per person and $100,000 per accident for bodily injury, and $25,000 for property damage. This means that the insurance company will pay up to $50,000 per person for injuries and $100,000 in total for all injuries in an accident, and up to $25,000 for property damage.

If the cost of accident-related injuries and losses exceeds these limits, the victim may be left to cover the difference out of their pocket.

Options for Recovering Additional Compensation

If you find yourself in a situation where the cost of damages and injuries exceeds the limits of the at-fault driver’s insurance policy, there are several options available to you for recovering additional compensation. These include:

• Underinsured Motorist Coverage – This type of coverage is optional, but it can provide additional protection in cases where the at-fault driver’s insurance limits are not enough to cover the cost of injuries and losses. Underinsured motorist coverage will kick in when the at-fault driver’s liability coverage is exhausted.
• Personal Assets – If the at-fault driver has assets, such as a home or savings account, that can be used to pay for additional damages, you may be able to recover additional compensation by filing a lawsuit against them.
• MedPay and PIP – MedPay (Medical Payments) and PIP (Personal Injury Protection) are optional types of coverage that can help cover medical expenses in case of an accident. They can be used in addition to liability coverage to help cover medical expenses that exceed the liability coverage limits.
• Seek Legal Representation – An experienced car accident attorney can work within the legal system to pursue additional compensation through a personal injury lawsuit.
• Negotiate with the Insurance Company – Your attorney might also be able to negotiate with the insurance company on your behalf to try to reach a settlement that covers the full amount of your injuries and losses.

It’s important to note that each case is unique, and the best course of action will depend on the specific circumstances of your case. An experienced Birmingham car accident attorney can help you understand your options and determine the best course of action.

Tips for Protecting Yourself

There are steps you can take to protect yourself from being in a situation where the cost of injuries and losses exceeds the limits of the at-fault driver’s insurance policy:

• Purchase Higher Liability Limits – If you can afford it, purchasing higher liability limits can provide additional protection in case of an accident.
• Purchase Underinsured Motorist Coverage – This type of coverage can provide additional protection in case the at-fault driver’s insurance limits are not enough to cover the cost of injuries and losses.

A Birmingham Car Accident Attorney Can Help

After you’ve been in a car accident, the last thing you want to worry about is whether you’ll be able to recover the compensation you deserve. It’s for that reason that it’s essential to understand your options for recovering additional compensation and take steps to protect yourself.

An experienced car accident attorney can help you navigate the legal system and pursue additional compensation through a personal injury lawsuit. If you were injured in a car accident in Birmingham that wasn’t your fault, don’t hesitate to seek legal representation from the experienced legal team at Farris, Riley & Pitt, LLP. Every day counts. Contact our car accident lawyers today for your free consultation.