How Auto Accident Settlements Can Exceed Insurance Policy Limits
In a car accident case, the damages can sometimes exceed the policy limits of the at-fault driver’s insurance. This is because the insurance company will only pay up to the coverage amount specified in the policy. However, there are ways to pursue compensation beyond this limit.
What Are Auto Insurance Policy Limits?
In Florida, the state mandates minimum coverage for auto insurance:
- $10,000 for Personal Injury Protection (PIP)
- $10,000 for Property Damage Liability (PDL)
While Florida doesn’t require drivers to carry bodily injury liability insurance, if they do, the minimum required amount is $25,000. These amounts may be sufficient for minor accidents but can be quickly exceeded in more severe cases, especially when medical costs or property damage are substantial.
When the damages surpass the policy limits, drivers and accident victims may need to explore additional options for compensation. A Fort Myers personal injury lawyer can help in such cases.
How to Collect for Damages Above the Auto Accident Insurance Settlement
Even if the insurance policy doesn’t cover all your damages, there are still ways to recover the excess amount:
1. Multiple Parties
If a commercial vehicle, like an 18-wheeler or a city bus, was involved, you might be able to file claims against both the driver and the company. Similarly, if multiple parties contributed to the accident, claims could be made against each one.
2. The At-Fault Driver
If the driver’s insurance doesn’t fully cover your damages and they don’t have enough assets, your lawyer might help you file a lawsuit to pursue additional compensation directly from the at-fault driver.
3. Umbrella Policies
Many drivers purchase umbrella insurance policies that provide coverage above the standard auto insurance limits. If your damages exceed the primary policy’s limits, the umbrella policy may cover the additional costs.
How to Maximize Compensation for Damages Exceeding Policy Limits
If the other driver’s insurance doesn’t provide enough compensation, you can look into various options to recover your losses:
- Uninsured/Underinsured Motorist Coverage (UM/UIM): If the other driver doesn’t have sufficient coverage, this policy can help cover the remaining costs.
- Bad Faith Lawsuits: If the at-fault driver’s insurance company refuses to settle fairly, your lawyer might file a bad faith lawsuit against the insurer, potentially resulting in full compensation for your damages.
- Negligence Claims: In some cases, the accident may involve more than one party at fault, such as defective vehicle parts or improper road conditions. Your lawyer can explore these angles to secure higher compensation.
What You’re Entitled to in an Auto Accident Settlement
Your compensation will depend on the severity of the accident and your damages. Common damages include:
- Medical Expenses: Including surgeries, hospital stays, rehabilitation, etc.
- Lost Wages and Future Earnings: If you can’t work due to your injuries.
- Pain and Suffering: Compensation for physical and emotional distress.
- Property Damage: Repair or replacement of your vehicle.
- Wrongful Death: If the accident led to the death of a loved one, compensation may include funeral costs, loss of income, and emotional distress.
Who Pays for Damages That Exceed the Car Accident Policy Limits?
While Florida’s PIP insurance covers up to $10,000 in medical bills, you may still face damages beyond that. If this happens, you may seek additional compensation from:
- The At-Fault Driver: Through liability insurance or a lawsuit.
- Multiple Parties: If more than one party is responsible for the crash.
- Government Entities: In cases where poor road conditions or lack of warnings contributed to the accident.
- Vehicle Manufacturers: If defective car parts caused or contributed to the crash.
How to Prove the Other Party Is Responsible for Your Car Accident Damages
To prove the other party’s liability, your lawyer must show:
- Duty of Care: The other driver was obligated to drive safely.
- Breach of Duty: The driver failed to uphold that responsibility.
- Causation: Their breach led directly to your injuries.
- Damages: You suffered tangible and intangible losses.
Supporting evidence, such as eyewitness statements, traffic citations, medical records, and accident reports, will strengthen your case.
What Compensation Can You Seek Beyond Insurance Limits?
You can seek compensation for various types of damages when your auto accident claim exceeds policy limits, such as:
- Past and future medical bills
- Property damage costs
- Pain and suffering
- Mental anguish
- Lost income (past and future)
- Reduced earning capacity
- Scarring and disfigurement
- Funeral expenses (in wrongful death cases)
Understanding Insurance Types in Florida
To understand the different ways you can recover damages, it’s important to know the types of auto insurance in Florida:
- Bodily Injury Liability: Covers injuries caused by the policyholder.
- Property Damage Liability: Covers damage to other parties’ property.
- Uninsured/Underinsured Motorist: Covers damages when the other driver has insufficient coverage.
How Much Will Your Auto Accident Settlement Be Worth?
Your settlement will vary based on the severity of your injuries and the circumstances surrounding the accident. Contact an experienced personal injury lawyer to assess your case and determine the compensation you may be entitled to.
Contact a Fort Lauderdale Personal Injury Lawyer
If you’re facing an auto accident settlement that exceeds policy limits, the Law Offices of Wolf & Pravato can help. Call (954) 633-8270 for a free consultation to explore your legal options. We work on a contingency basis, so you pay nothing unless we win your case.
FAQs:
1. How often do auto accident settlements exceed the policy limits?
It is not possible to say precisely how often auto accident settlements exceed insurance policy limits. Such data is not publicly available. However, car accident settlements can be helpful when your losses exceed insurance coverage limits. The liable party may settle to cover losses beyond what their insurance covers.
2. What is a car accident property damage settlement?
A car accident property damage settlement covers harm to your personal property. This can include:
- The cost of repairing your vehicle
- The cost of replacing your totaled vehicle
- The cost of replacing damaged property inside of your vehicle
- The cost of replacing personal property secured to the outside of your vehicle
A settlement may be necessary if property damage exceeds insurance coverage limits.
3. How do find out someone’s insurance policy limits?
You should be able to learn someone’s insurance policy limits by contacting their insurance company. The company may generally contact you following your accident. In time, they should tell you what the at-fault party’s insurance policy limits are. We can handle this process for you. A Fort Myers car accident lawyer from our firm will inform you of the responsible party’s coverage limits once we learn them.
4. How much money can you get from a car accident settlement?
How much money you can get from a car accident settlement depends on:
- The value of your losses
- The effectiveness of your lawyer’s negotiation
- The willingness of at-fault parties to cover your losses
The American Bar Association (ABA) explains that liable parties generally agree to a settlement. There is no certain outcome to your case, however. As your case progresses, your lawyer will explain how much compensation they are targeting.
5. What is the average time for a car accident settlement?
There is no documented average time to complete a car accident settlement. Every case is unique, and so is the time each case takes to complete.
Factors that may affect the duration of your case are:
- Whether liable parties agree to settle quickly
- Whether fault for the accident is in question
- Whether your lawyer needs to file a lawsuit
- Whether your lawyer needs to take your case to trial
