When a car accident claim exceeds insurance limits, the insurance company will only pay up to the policy’s maximum limits, even if your damages exceed that amount. Auto insurance policies often set separate limits for bodily injury and property damage, and reaching the limit in one category does not allow you to draw from the other. If your medical bills or other losses go beyond those limits, the remaining damages will not be covered by that policy.
Many people who are severely injured may require ongoing medical treatments, multiple follow-up procedures (especially surgery), or require treatment and care in a nursing home or memory care facility. These medical expenses often exceed even the highest coverage limits.
A Maine car accident lawyer can help you explore options for recovering the full value of your damages when insurance coverage falls short.
Who pays first when a car accident claim exceeds insurance limits?
When you get in a car crash and pursue a claim against the at-fault party, the at-fault party often doesn’t pay your damages directly; their insurance company does. In Maine, drivers are required to carry at least the following minimum auto insurance coverage:
- Bodily Injury Liability: $50,000 per person / $100,000 per accident
- Property Damage Liability: $25,000 per accident
- Medical Payments (MedPay): $2,000 per person
- Uninsured/Underinsured Motorist (UM/UIM): $50,000 per person / $100,000 per accident (matches your liability limits)
Drivers also have the option to take out personal injury protection (PIP) coverage, which pays certain medical expenses for the policyholder, regardless of who caused the wreck. This coverage can give victims the much-needed cash they need to fix their car and pay for immediate medical care, while they’re waiting for the at-fault driver’s insurance company to pay out.
You can file one claim with your PIP carrier and another with the at-fault driver’s insurer, which can help cover more of your damages.
What options are available when a claim exceeds policy limits?
One option if the losses from your car accident exceed your policy limits is to file a personal lawsuit against the driver. If the driver has sufficient assets beyond the insurance limits, you may recover the balance of your damages directly from the at fault party. However, this may not be a practical option if the other driver doesn’t have the money or assets to pay the rest of your damages.
You can also file a claim with your own underinsured/uninsured (UM/UIM) insurance coverage if the driver who hit you does not have enough insurance to cover your losses. This is usually a better option than trying to pursue compensation from a driver with meager personal assets.
There is also a chance that the other driver (the defendant) may have an umbrella policy: an optional insurance policy that covers the gap between the plaintiff’s damages and the defendant’s auto policy. Umbrella policies can be used for car accident claims and for homeowners’ insurance claims alike.
If there are other parties whose negligence contributed to the crash, you may be able to pursue compensation from them. Perhaps the other driver hit you because a traffic light malfunctioned. In a case like this, the entity responsible for maintaining the traffic signals could be held partly liable for allowing dangerous conditions to persist.
How our lawyers can help you secure the full value of your damages
The attorneys at Shaheen & Gordon properly value your claim, including your past and future medical bills, and work to recover the full compensation available under the law. If your damages exceed the at-fault driver’s insurance limits, we can assist with filing a claim with your own insurer and pursue additional legal options to help make things right.
If your car accident claim exceeds insurance limits, an attorney from Shaheen & Gordon can help you understand your options. Call (800) 451-1002 or contact us online to request a free personal injury consultation.
