If you have been seriously injured in a car accident, you need compensation for your injuries. This compensation normally will come from the car insurance held by the driver responsible for the accident. However, what if your injuries extend beyond the amount given by the insurance company? Can you sue the driver for an amount over what the insurance company covered?
These damages can add up quickly, and insurance policies have a maximum coverage payout. Once the insurance has maxed out, they will not pay anymore. There are situations in which the damages suffered could exceed the coverage provided by the insurance policy. If that is the case, you can still file a lawsuit.
As an example, your damages total $450,000. The at-fault driver has an insurance policy that pays a maximum $100,000 per accident. You don’t want to be stuck paying the rest of the damages out of pocket, so you should retain a personal injury lawyer and then file a lawsuit against the at-fault driver.
In this case, the court may award you a judgment for the difference - $350,000. If and how you can collect this judgment can vary greatly.
In some states, you may need to get a judgment against an uninsured driver to get the maximum payout offered by your underinsured/uninsured motorist. In that case, you must provide documentation that shows you have a judgment for a specific amount then how much their insurance paid out and that their coverage was maxed out and you still have losses.
After both your underinsured coverage and the other driver’s insurance have paid the maximum any additional damages may be covered by an umbrella policy or some other insurance coverage the other driver has to protect him or her from liability issues.
If there isn’t enough coverage to take care of your losses, a lien could be filed against the liable party’s property or business, or depending on the state laws, you may be able to garnish wages and get the difference paid to you through installments.
We have asked attorney Alaina Sullivan about what you should do. Here is what she had to say:
How Much can be Awarded?
Yes, you can sue the driver over the amount provided by the insurance company. Depending on the severity of your injuries, you may need a monetary payment over what is given to cover your injury liabilities. Generally, no cap is placed on how much you can seek, but it is important you discuss this with your own insurance company first. Some states may cap your auto accident settlement.
What do I do First Before Filing Suit?
If you feel that your liability extends beyond what will be awarded, you should always contact your insurance company first. They need to know this information prior to any settlement negotiations as that will affect whether insurance settlement will occur and/or how much will be given. They will be able to advise you on how to proceed and may be able to further advise you as to realistic expectations.
Insurance Limitations
The amount of money the driver’s insurance company can and will be willing to pay depends on the auto insurance policy he or she holds. Your limits of liability dictate the maximum the insurance company is willing to pay in the event of a personal injury lawsuit. Once you know that amount, you can get a better idea of whether this amount will cover your medical expenses and pain and suffering. It can be hard to estimate this early on following your accident, but try your best to work with your insurance company who has much more experience on calculating these types of expenses.
Life Changing Damages
You may wonder what kind of injuries could cause the damages to add up so much. Serious injuries, which will affect you the rest of your life will cause medical bills to add up quickly and will lead to a higher pain and suffering settlement.
As an example, a traumatic brain injury or a spinal injury could lead to medical bills in excess of $100,000. These injuries may cause permanent disabilities, and, in that case, you will have a long-term loss of income. Your family depends on your income, and you will need to claim pain and suffering and loss of earnings to help take care of your needs.
Your personal injury attorney will review the details of your case and go over your medical records. Any past, present, and future medical expenses should be claimed as well as any past, present, and future lost wages.
It is important to fully evaluate your condition and the severity of your injuries before agreeing to a settlement with any insurance company or the other driver.
While some claims are settled rather quickly, it does take longer for others depending on the severity of the injuries and the extent of the damages. Those claims with damages that add up to higher amounts often take longer to resolve.
It is better to wait a little longer to resolve the claim to ensure you get enough to cover all the losses that you suffered in the crash.
Don’t risk not getting enough money to cover your losses just to resolve the claim more quickly. Instead, make sure you understand the full extent of your losses and how this accident will affect your future.
You don’t want to resolve the matter too quickly and sell yourself short. Add up all the medical expenses, the loss of earnings, pain and suffering, mental anguish and the other losses that you have suffered.
To get your claim underway, you will send a demand letter to the other driver and/or the auto insurance company. This will itemize your losses and detail how much you are asking for each damage. The total will then be added up and the insurance company will see the total you are asking to be compensated for your damages.
Negotiate With The Insurance Companies
If you have suffered damages in an auto accident, you will negotiate with the auto insurance company. Always ask for more than the minimal amount that you are willing to accept as a settlement. Odds are the insurance company will not be willing to pay you what you ask for initially.
They will either reject it or make a counteroffer. Don’t accept a lowball offer. Instead, you may have to wait it out and continue negotiating back and forth.
The auto insurance companies have a legal team to look out for them, so you should enlist the help of an accident injury lawyer who will look out for your interests. Your lawyer will know when you are being offered a fair deal and when to settle.
Your lawyer will also know if it is in your best interest to advance the case to court. Your lawyer will review any settlements and will make sure when it is time for you to sign the paperwork.
If you don’t have an attorney, be careful before you agree to any settlement. Use caution before you cash or deposit any checks from the insurance company. If you find out that you have more serious injuries, you may not be able to renegotiate for more compensation if you have cashed the checks sent to you from the insurer.
Talk with your accident injury lawyer about your claim. Your attorney will be able to help you determine your damages and will know a fair value for your claim. Personal injury lawyers work on a contingency basis, so your attorney will not be paid until you win your claim and recover damages.
At that time, your lawyer will be compensated by receiving a percentage of your judgment or settlement. Don’t delay getting the help you need after you have suffered damages in a car crash caused by a negligent driver.
What if the Settlement is not Enough?
The answer to that depends on the circumstances. If driver’s insurance company refuses to pay anything additional other than the settlement amount, your insurance company would go to court to show that the other company should pay more than the basic accident expenses. If, however, the insurance company has already offered the state maximum allowed based on your policy, then you are the one responsible with taking the driver to court for the remainder of what you feel you are owed.
Paying for Legal Representation
Unlike before, however, your insurance company will not be representing you should you decide to take the driver to court. They will only represent you to get what you are deserved up to your insurance maximum but nothing over. You will need to hire your own attorney to handle additional litigation. Should you succeed, you may be able to get reimbursement for attorney’s fees for bringing your case. However, if you fail, you could end up having to reimburse the other side for bringing the suit.
Contact an Attorney Today
A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company. For the best chance of receiving the compensation you need to pay for medical bills, auto body bills, and pain and suffering, you should speak with a personal injury attorney in your area today.
