After a serious accident, you may expect the at-fault driver’s insurance company to cover your medical bills, lost income, property damage, and other losses. But what happens when your injuries and financial losses exceed the insurance policy’s coverage limits?
This situation can arise after severe car accidents, truck crashes, motorcycle accidents, and other personal injury incidents. For example, an injured person could face thousands of dollars in medical expenses and lost wages while the at-fault driver’s insurance policy provides significantly less coverage.
When the available insurance isn’t enough to cover your damages, the case can become considerably more complicated. Understanding your options is important before accepting a settlement or signing a release of your claims.
If you believe your injuries may be worth more than the available insurance coverage, consulting an experienced personal injury lawyer in Cincinnati can help you understand what sources of compensation may be available and what steps you can take to protect your rights.
What Are Insurance Policy Limits?
An insurance policy may provide various layers of coverage, including liability coverage. A policy limit is the maximum amount an insurance company is generally obligated to pay under a particular policy for a covered claim. The policy limit is the most an insurer will pay pursuant to its contract with the insured.
For example, if a negligent driver has a policy with a $100,000 per person liability limit and your damages are valued at $250,000, the most that driver’s insurance company is ever pay is that limit.
That does not necessarily mean your claim is limited to $100,000. In fact, the at fault driver would be personally liable for any damages above and beyond that liability policy’s limits.
Depending on the circumstances, there may be other potential sources of compensation. Determining whether those options exist requires examining the accident, the insurance policies involved, and the parties who may be legally responsible.
How Do You Know If Your Claim Is Worth More Than the Policy Limits?
The value of a personal injury claim isn’t based solely on your current medical bills. A claim may include both economic and non-economic damages.
Potential damages can include:
- Emergency room and hospital expenses
- Surgery and rehabilitation costs
- Prescription medications
- Future medical treatment
- Lost wages
- Reduced future earning capacity
- Physical pain and suffering
- Emotional distress
- Loss of enjoyment of life
Serious injuries can create expenses that continue for months or even years after an accident. That’s why it’s important to understand the full extent of your damages before agreeing to a settlement.
A personal injury lawyer in Cincinnati can review your medical records, employment information, accident evidence, and other documentation to help determine the potential value of your claim.
What Happens When the At-Fault Driver’s Insurance Isn’t Enough?
Though car insurance is required in the state of Ohio, it’s still possible to get in an accident with an uninsured motorist. Even if they do have insurance, it’s possible that the cost of your injuries, repairs, and general recover exceed their policy limit. If either of these happen, you still have options.
One of the first places to look is your own automobile insurance coverage. If you have underinsured motorist (UIM) coverage, it may provide additional compensation when the at-fault driver’s liability insurance is not enough to cover your losses. There may also be other insurance policies that provide UIM coverage depending on the circumstances of the collision.
This is exactly why we encourage drivers to consider carrying UIM coverage. Serious injuries can quickly result in medical expenses, lost income, ongoing treatment, and other damages that exceed another driver’s policy limits.
That said, having UIM coverage does not mean your insurance company will simply pay the remaining amount of your claim. Your policy will have its own terms, limits, requirements, and exclusions. An attorney can review the available coverage and help determine whether an underinsured motorist claim is an option.
Other Potential At-Fault Parties
Your own insurance coverage is not necessarily the only place to look. An investigation may reveal that other people or businesses share responsibility for the accident.
For example, if the at-fault driver was working at the time of the collision, an employer may potentially bear responsibility under certain circumstances. Commercial vehicle accidents can raise additional questions about the company operating the vehicle. A defective vehicle or component could potentially involve a manufacturer, while another negligent driver may have contributed to the collision even if that person was not initially identified as primarily at fault.
There may also be additional insurance coverage associated with a responsible party, including an umbrella policy.
When damages exceed the primary driver’s insurance limits, identifying all potentially responsible parties and available insurance policies becomes particularly important. An attorney can investigate the circumstances surrounding the accident and determine whether additional sources of recovery may exist.
Can You Sue the At-Fault Driver Personally?
In some circumstances, an injured person may be able to pursue the at-fault party personally for damages that exceed available insurance coverage. However, having a legal right to pursue additional compensation does not necessarily mean that the defendant has assets that can actually be recovered.
Before pursuing this type of claim, an attorney may consider factors such as:
- The defendant’s available assets
- Additional insurance coverage
- The severity and value of the injuries
- Whether other parties share liability
- The likelihood of actually recovering on any judgment
A lawsuit against an individual may not always be the most practical option. That’s why evaluating the available sources of recovery is an important part of a personal injury case.
Should You Accept the Insurance Company’s Policy-Limit Offer?
If an insurance company tells you that it is offering the maximum amount available under its policy, you may understandably feel pressure to accept.
However, signing a settlement agreement can have significant consequences. In many cases, accepting a settlement requires you to release the insurer and potentially other parties from further claims related to the accident.
Before accepting a policy-limit settlement, it’s important to understand:
- The total value of your injuries
- Whether additional insurance coverage exists
- Whether other parties may be liable
- Whether you have ongoing medical treatment
- What rights you may be giving up by signing the settlement
A settlement that sounds substantial may not be enough if you are facing significant future medical expenses or permanent limitations.
What If the Accident Was Partially Your Fault?
Ohio’s comparative negligence rules can also affect how much compensation an injured person may recover.
In some cases, the parties may dispute how much fault should be assigned to each person involved in an accident. If an insurance company argues that you contributed to the crash, it may attempt to reduce the amount it offers.
For example, an insurer might argue that an injured driver was speeding, failed to pay attention, or otherwise contributed to the accident.
Determining fault requires looking at the evidence rather than simply accepting an insurance company’s assessment.
A personal injury lawyer in Cincinnati can investigate the accident and challenge an unfair attempt to shift responsibility onto you.
Why You Shouldn’t Settle Before Understanding Your Total Damages
One of the biggest risks in a serious personal injury case is settling before you understand the full extent of your losses.
Some injuries become more serious over time. You may also discover that you need:
- Additional surgeries
- Long-term physical therapy
- Ongoing medication
- Future medical treatment
- Changes to your employment
- Assistance with everyday activities
Once you accept a settlement and sign a release, you may no longer be able to seek additional compensation for the same accident.
This makes it particularly important to understand your medical prognosis and potential future damages before resolving a significant claim.
How a Personal Injury Lawyer Can Help
When your damages may exceed the available insurance coverage, determining what to do next requires more than simply adding up your medical bills. An attorney can investigate the accident, identify all potentially responsible parties, review applicable insurance policies, and determine whether additional sources of coverage may be available.
An attorney can also evaluate the full extent of your losses, including ongoing medical treatment and other future damages, while communicating and negotiating with the insurance companies involved. This can be particularly important before accepting a settlement or signing a release that could prevent you from pursuing additional compensation.
Reaching the at-fault driver’s insurance limit does not necessarily mean you have exhausted your options. Underinsured motorist coverage, additional insurance policies, or other responsible parties may need to be investigated before your claim is resolved.
At The Richards Firm, we help injured individuals understand what coverage and legal options may be available before they make those decisions. If you’ve suffered serious injuries and are concerned that the available insurance will not cover your losses, consider speaking with a personal injury lawyer in Cincinnati.
We can review the circumstances of your accident, investigate potential sources of compensation, and explain your options under Ohio law. If you or a loved one has been injured, contact The Richards Firm at 513-461-0084 or click here to schedule a free consultation online.