What Happens If Your Personal Injury Claim Is Worth More Than the Insurance Policy?
When Insurance Coverage May Not Be Enough
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?
1. You May Have an Underinsured Motorist Claim
Your own automobile insurance policy may provide underinsured motorist (UIM) coverage. You may also be entitled to UIM coverage from other policies that may cover you at the time of any collision. We are not an insurance company and battle with insurers daily, but we advise our clients to carry UIM coverage on their policies for exactly this scenario.
Depending on the terms of your policy and the circumstances of the accident, UIM coverage may provide additional compensation when the at-fault driver’s insurance isn’t sufficient to cover your losses.
For example, if your damages are significantly greater than the at-fault driver’s available coverage, your own policy may provide another potential source of recovery.
Because insurance policies can contain complicated provisions and exclusions, it’s important to carefully review your coverage rather than assuming that your own insurance company will automatically pay the difference.
2. Other Responsible Parties May Be Identified
Sometimes the person who caused the accident isn’t the only potentially liable party.
For example, depending on the circumstances:
- There may be additional umbrella policies providing coverage for the situation.
- An employer may be responsibility for an employee’s actions.
- In the case of a crash caused by a commercial driver, a trucking company may be responsible for certain conduct involving its driver or operations.
- A vehicle manufacturer could potentially be responsible for a defective component.
- A property owner could potentially share responsibility for contributing conditions.
- Another negligent driver may have contributed to the collision.
Identifying every potentially responsible party can be especially important when the primary insurance policy is insufficient.
An attorney can investigate the circumstances surrounding the accident to determine whether additional parties or insurance policies may be involved.
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
Determining whether a personal injury claim exceeds available insurance coverage requires more than simply adding up medical bills.
An experienced attorney can:
- Investigate how the accident happened
- Identify potentially responsible parties
- Review applicable insurance policies
- Determine whether additional coverage may exist
- Calculate current and future damages
- Negotiate with insurance companies
- Evaluate whether litigation is appropriate
- Help protect you from accepting an inadequate settlement
The goal isn’t simply to obtain the first insurance payment offered. It’s to determine what compensation may realistically be available and pursue it appropriately.
What Should You Do If Your Claim Exceeds Insurance Coverage?
Discovering that your damages may be worth more than the at-fault driver’s insurance policy can make an already difficult situation even more stressful. However, reaching an insurance limit does not necessarily mean that your options are exhausted.
Additional insurance coverage, other potentially responsible parties, and other legal avenues may need to be explored before you agree to a final settlement.
If you’ve suffered serious injuries in an accident and believe the available insurance may not be enough to cover your losses, consider speaking with a personal injury lawyer in Cincinnati before accepting an offer or signing a release.
The Richards Firm can help you understand your legal options, investigate the circumstances of your accident, and pursue the compensation you may be entitled to under Ohio law.
If you or a loved one has been injured, contact The Richards Firm to discuss your case and learn more about your options. We are available for a free consultation at 513-461-0084.
