When a Car Accident Claim Exceeds Insurance Limits

Car insurance serves as a financial safety net, legal requirement, and risk management tool that protects both drivers and others on the road from the financial aftermath of accidents and unexpected events. Car insurance also gives drivers peace of mind, knowing they have financial protection when unforeseen circumstances arise. It helps distribute the financial risks associated with driving among a larger group of policyholders, ensuring that individuals do not bear the entire financial burden of an accident on their own. But what happens when damages exceed insurance limits? Unfortunately, this is a horrible spot to be in, regardless of whether you're an injured victim or the at-fault party. It's crucial that you receive proper legal advice from an attorney who can help you understand your rights and responsibilities following an accident where insurance coverage limits have been reached.

In the article, we'll explore this topic further and provide insight into how a car accident lawyer in California can help if you're facing challenges regarding auto insurance coverage limits. Let's begin by answering the most basic question.

What Happens When Car Accident Claim Exceeds Insurance Limits?

The outcome of a situation where a claim exceeds auto insurance limits can vary based on factors such as state laws, the at-fault driver's financial situation, and the willingness of the parties to negotiate and reach a resolution. The at-fault driver may be personally responsible for the amount of damages that exceed their car insurance coverage limits. This could involve the at-fault driver paying out of pocket losses incurred by the injured party, such as medical expenses and property damage. Additionally, the parties involved, including the injured party and the at-fault driver, may attempt to negotiate a settlement outside of the insurance coverage.

This negotiation could involve agreeing on a payment plan or a lump-sum settlement to address the excess damages. On the other hand, if the injured party has a higher uninsured/underinsured motorist policy, it can provide additional compensation when the at-fault driver does not have insurance or it’s insufficient. The injured party can file a claim with their own insurance company to cover the remaining damages.

Understanding car accident laws in California can be overwhelming, especially if you've sustained injuries and are trying to recover. Having a team of legal professionals to support you is critical—no need to fight the legal system on your own. If you've been hurt due to someone else's negligence, get the help you need and receive the compensation you’re entitled to.

What To Do After a Car Accident?

Lawyer up! Why? Because attorneys ensure that their clients' legal rights are protected throughout the process and that they are not taken advantage of by insurance companies or other parties involved. When an accident occurs, and car insurance limits have been reached, an attorney can be instrumental in helping navigate the complex legal and financial aspects of the situation.

Attorneys can conduct a thorough assessment of liability and damages to determine the true extent of the losses. This includes evaluating medical bills, property damage, lost wages, and other relevant factors. Even if insurance limits have been reached, an attorney may negotiate with the insurance companies involved to explore the possibility of obtaining additional compensation. This negotiation may involve reaching a settlement or establishing a payment plan. Attorneys can help identify potential additional sources of compensation, such as uninsured/underinsured motorist coverage, personal assets of the at-fault driver, or other liable parties. If negotiations with insurance companies are not successful or if there are significant outstanding damages, an attorney can file a lawsuit on behalf of the injured party. This involves presenting evidence, arguing legal points, and advocating for fair compensation on behalf of their client.

California Personal Injury Lawyers

If you have questions or need legal advice, contact us to book a free case evaluation to consult with a personal injury lawyer in Burbank. Founded in 1998 in Los Angeles, Yepremyan Law Firm is consistently ranked as one of the top law firms in California, in addition to having nationwide recognition. Our firm will maximize your chances of receiving fair and just compensation for your injuries. We work on a contingency basis for all personal injury matters—no recovery, no fee!

*No Legal Advice Intended. This website includes general information about legal issues and developments in the law. These materials have been prepared for general informational purposes only and are not intended to be legal advice. Please consult an attorney for legal advice pertaining to any particular legal matter. Use of and access to this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and Yepremyan Law Firm and any of its attorneys, employees, or associates.