What happens when a car accident claim exceeds insurance limits?

Car accidents, when they occur, come with some very serious consequences. One of the factors that hold a lot of importance is insurance and the coverage that it provides for the damages that have occurred after the accident.

Auto insurance policies are designed in a certain way where they provide financial alleviation to people against different types of damages and losses that result from car accidents. There are different types of policies that provide different forms of coverage to people depending on the injuries and the losses that they have endured.

But have you ever thought about what happens when a car accident claim exceeds insurance limits? To get an answer to this question, the best car accident lawyer in Houston TX suggests you need to understand better the type of insurance that you have and the policy labs that they offer. 

Types of Insurance Coverages

It is very important to understand the types of coverage when it comes to car insurance policies to make the best decision for yourself that can help you with your insurance needs. 

Liability Coverage

An auto insurance policy must involve liability insurance. It pays the cost of injury or damages you might cause another person in an accident. It is generally required by law in most states and is divided into two categories:

Bodily Injury Liability: This type of coverage includes payment of medical bills, wages lost due to injuries, and other damages you caused to the other party involved during an accident.

Property Damage Liability: This covers the amount of money you spend on the repair or replacement of other people’s property (such as a car) you destroy in an accident.

Comprehensive Coverage

These are the damages that occur to the car and are not caused by the accident or the collision. This can include natural disasters like floods or earthquakes, fire eruptions, theft, or accidents that involve the role of an animal. 

Collision Coverage

Collision insurance pays for the repairs or replacement of your car after a crash, even if you are not at fault or the other party. It offers special benefits when it comes to dealing with collision-related damage, such as damage from collisions with other cars, fences, and street lights, among others.

The expert lawyers at Mokaram Law Firm can help you get the best compensation out of the policy plan that you have for yourself. 

Exceeding Insurance Limits – Significant Steps to Take

If you are involved in a car accident, and the damages do cross the limitation of the coverage offered by your insurance company, here are the initial steps that you need to take to handle the situation in the best way possible. 

Shall we begin?

Assess the Accident Scene

First of all; you need to make sure that you are safe after the accident. Then, you must make sure that you document the whole scene properly. This can be done by taking pictures of the site of the accident and also making sure that you have documented the kind of injuries and the damage that has occurred. 

Make sure that you get the contact information of the witnesses present at the accident site and exchange the information regarding your insurance with the other party involved in the accident. 

Connect with the Insurance Company

Ensure that you inform your insurance company about the incident immediately or as soon as possible. Share all the collected information and the details of the accident with them.

Discuss the coverage with your insurance agent and the amount of money you can receive.

Consult with your Lawyer

Why are spiders great legal advisors? They spend all day on the web looking for loopholes.

Well, this clearly tells why your next step must be hiring a legal expert to take on your case. They not only help in jotting down all of the loopholes, but they can also help a lot if the car accident insurance has exceeded the limit in any way. 

They can help you by using their legal skills. By coming up with the probable liabilities and advice regarding different aspects of the case that are not very easy for an ordinary man to deal with, they can make it way easier for you to deal with difficult cases. 

Prepare for the Claims

In case you are responsible for the accident and your insurance company can’t cover the full cost of damages, the other party may sue you.

Begin thinking about what you will do in case of financial debts that arise from such a lawsuit.

Review Your Uninsured Coverage 

If the faults of the other party, you need to make sure that you review their policy and their insurnace limits. There is a possibility that their policy is unable to pay for the damages that you have endured and is insufficient. 

If you are covered by an underinsured motorist, it will provide help in such a situation. To get the most out of it, talk through this with your insurance provider. 

Make sure that you keep all of the records of all the conversations that you are having with the insurnace companies and your lawyers. This may also include the conversations that you might have had with the other party’s insurer. 

Clear Communication:

Watch what you say after the accident occurs, and try not to have verbal diarrhea. Refrain from admitting anything related to the accident or any sort of fault. Do not say anything that can be used against you in the proceedings.

Do not try to take things into your own hands and have your insurance company take care of most of the communications with the other party’s insurance company.

Legal Consequences of Exceeding Insurnace Coverage

There is a way the law handles cases where the claims exceed the insurance limits. 

Personal Liability of At-Fault Driver: If the damages are more than your liability coverage, then you will have to pay it out of your pocket. The injured party can easily sue you for the remaining amount.

Judgment and Collection Process: If by any chance the other party wins the case against you, they can get the needed amount in several ways, provided the injured party sued you first. They can do that by placing a lien on your property or just seizing it.

State Laws and Limits: How such cases of exceeding coverage are handled depends on state laws. The amount of certain damages allowed is limited in some states; there are also laws on insurance involvement in accidents.

Legal Actions Against Drivers At-Fault

No one goes empty-handed here. For the drivers at fault, some legal actions can be taken. 

• The usual legal action arises as a civil case on the side of the innocent party seeking compensation for the exceeded insurance limits. These may include medical bills, lost wages, damaged goods, etc., and even pain and suffering in some instances.

• While a lot of car accidents end in civil cases, in some situations, like driving under the influence or careless driving, the innocent party can even file a criminal case against the party at fault. 

• Being a part of such an event may also affect your future insurance. It may result in higher premiums or even be impossible to secure coverage.

• In cases where the party at fault has insufficient insurance, the innocent party, if possible, can file a claim under their uninsured motorists’ coverage. 

Connect with Mokaram Law Firm 

To get the best assistance in managing the complexities of your car accident cases, especially when it comes to situations like claims exceeding the insurance coverages, Mokaram Law Firm is here to help you. Dial (281) 609-9224, to consult with the best lawyers in town to get your cases resolved. Their guidance and advice can help you maneuver through the intricate aspects of different cases in no time.