What Happens if a Car Accident Claim Exceeds Policy Limits?

Traffic accidents are quite common in the Sunshine State. According to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), in 2023, there were 393,123 traffic collisions in Florida. While some of the traffic accidents that happen in Florida are unavoidable, most of the accidents are preventable. Most collisions occur due to negligence. In Florida, if you are injured in a car accident because of another driver’s negligence, you can file an insurance claim against the negligent driver and recover financial compensation. But what happens if your damages exceed the limits of the insurance coverage?

After filing a car accident insurance claim, sometimes the damages incurred exceed the defendant’s liability insurance limits. This can happen if the defendant is underinsured or only purchased the minimum liability limits. When purchasing auto insurance, it is recommended that you purchase higher liability limits. This way, you can protect yourself financially if you ever find yourself in a situation where a car accident claim has been filed against you. So, what happens if a car accident claim exceeds policy limits? Read on to find out.

Options for Recovering Compensation if Your Claim Exceeds the Defendant’s Policy Limits

If you suffered an injury in a Florida car accident and your claim exceeds the other driver’s policy limits, don’t expect the insurance company to be willing to pay more than the policy is worth. However, you may have other options for securing compensation. The following are some of the options you may have if your car accident claim exceeds the defendant’s policy limits;

Filing Multiple Claims

If the person you have filed a car accident claim against does not have sufficient insurance coverage to compensate you for all your damages, you may want to consider if there are other parties who were responsible for your accident that you can file claims against. Parties that could be subject to a car accident claim apart from the other driver include the vehicle owner, the driver’s employer, the vehicle manufacturer, and a bar or restaurant (in the case of a drunk driving accident).

Suing the Other Driver

If the negligent driver’s insurance coverage is insufficient to pay for all your damages, you can sue them and recover your damages from their assets. However, this option is only available if the at-fault driver has personal assets that can cover the discrepancy.

File a Claim Against Your Uninsured/Underinsured Motorist (UM/UIM) Coverage

Another way to recover additional compensation beyond the negligent driver’s insurance policy limits is to file a claim against your uninsured/underinsured motorist (UM/UIM) coverage. UM/UIM coverage is a type of coverage that protects you in the event that you are involved in a collision with a motorist who doesn’t have insurance or who has insurance that is not enough to cover all your damages. While uninsured/underinsured coverage is optional in Florida, it is advisable for drivers to consider adding this coverage to their auto insurance policy.

Contact Us for Legal Help

Our West Palm Beach personal injury attorneys at The Pendas Law Firm can help you understand your legal options after a Florida car accident. Contact us today to schedule a consultation.

The Pendas Law Firm also represents clients in the Orlando, Fort Lauderdale, Fort Myers, Ocala, Tampa, Jacksonville, Miami, Bradenton, Daytona Beach, Naples, and Melbourne areas.