What happens when the damages you've incurred following an auto collision are greater than the amount of the at-fault driver's insurance policy limits?

If you are injured in an auto collision, you may make a claim against the driver responsible for the collision and any resulting injuries and damages. In an ideal situation, this would mean getting fully compensated for all your losses. The trouble is, sometimes the amount of compensation you may be entitled to exceeds the at-fault driver’s insurance policy limits. While it may be possible to collect more compensation than the insurance policy limits, it is not an easy task, especially without an experienced lawyer by your side.

INSURANCE POLICY LIMITS. When a driver purchases auto insurance, there is always a policy limit. This limit refers to the maximum amount of compensation an insurance company will pay out if the policyholder is being sued. Insurance policy limits apply to cases settled out of court and to compensation awarded by a judge and jury after a trial. For instance, say you are in a car crash and the at-fault driver’s insurance has a policy limit for Washington's minimum of $25,000 in bodily injury coverage. This is the most their insurance company is legally obligated to cover for your injuries and damages. This may include medical bills, loss of income, and other out-of-pocket costs. Should your damages total more than the limit (i.e., more than $25,000), the remaining balance would not be covered by that insurance company.

SUING FOR MORE THAN THE POLICY LIMITS. Unfortunately, you cannot make an insurance company pay beyond its policy limit. You do, however, have the right to sue the at-fault driver for more than the value of their insurance policy. The issue is that many drivers typically do not have the funds to cover your damages. Even if you win the case at trial, you may not be able to collect the full amount awarded. Lawsuits can be expensive and lengthy.

In most cases, your lawyer will pursue compensation for you through negotiations with the insurance company. This might limit you if your damages exceed the insurance policy limits, but it may be the best way unless your lawyer decides that a lawsuit would be necessary.

OTHER WAYS TO PURSUE COMPENSATION. There are multiple ways you and your lawyer can work to recover compensation beyond an insurance company’s policy limits. This includes the following:

* Under an Umbrella Policy. Umbrella policies help provide additional coverage over and beyond the amount of primary auto insurance coverage the at-fault driver may have. The umbrella policy would kick in when a driver faces liability for damages that exceed the specific amount in their auto insurance coverage. Your lawyer can help determine if there are any umbrella policies that apply to your situation in order to help you recover damages.

* Filing a Lawsuit Against Multiple Parties. Should multiple liable parties be involved in a collision, you may be able sue each party to cover the percentage of the damages they caused.

Being able to collect more than the insurance policy limits is sometimes possible if your injuries and damages require more compensation. We can review your situation, discuss your legal options, and guide you through the legal process from start to finish.

Give us a call at 253.858.5434 to set up an appointment for a free, no-obligation consultation to see how we may be able to help. There is no obligation involved to hire us, but if you do, we charge no fees unless we recover damages on your behalf.