Injured and in need of a car accident attorney? Contact Michigan Vehicle Law – If you were injured in a car accident and have questions about how auto accident settlements can exceed the policy limits, you can call toll-free anytime 24/7 at (800) 777-0028 for a free consultation with one of our experienced auto accident attorneys to discuss your rights and the compensation and benefits to which you may be legally entitled.
If your losses exceed the policy limitations of the defendant’s insurance, you may be entitled to a judgment in excess of the policy limits. You may be able to collect the remainder of the judgment by garnishing the defendant’s salary or placing a lien on their property.
What occurs when an accident’s costs surpass the insurance limit?
More than 87% of U.S. drivers carry auto insurance for a very good reason — it protects property damage and medical expenses, which can rapidly become quite expensive. But what happens if the accident costs surpass the insurance policy’s maximum? The expenditures remain, and someone must continue to pay for them.
- If you are not at fault, there are three alternatives available to you: Get the driver at fault to pay.
- Determine whether you have coverage to address the gaps File a lawsuit.
- If you are at fault or reside in one of the 12 states with no-fault insurance, you must find a method to pay for the damages.
- The 48 states that mandate auto insurance have minimum coverage requirements.
All of them require liability coverage, which covers the other vehicle’s damages and injuries if you are at fault. Some jurisdictions also mandate uninsured motorist coverage, which protects you in the event of a collision with an uninsured or underinsured driver who is at fault.
- Your insurance policy specifies the maximum amount the business will pay in the event of an accident.
- The more the coverage, the higher the price.
- If you examine your motor insurance card, you’ll see the following numbers: 10/20/10.
- They list, in order, physical injury liability for one person, bodily injury liability for all individuals, and property damage liability, each in thousands of dollars.
In this scenario, the insurance company would pay a maximum of $10,000 for one person’s injuries, $20,000 for all injuries, and $10,000 for property damage if you were at fault in an accident. The states of Maine and Alaska have the strictest legal restrictions, 50/100/25.
Are vehicle accident losses always resolved within insurance limits?
How Often Do Accidental Damages Exceed Policy Limits? – Statistics concerning claims are difficult to measure due to changes in state auto insurance legislation, how states administer claims, the costs of medical treatment and repairs, and how values are appraised, among other factors.