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  • Writer's pictureTom Fowler

How Often do Auto Accident Settlements exceed the Policy Limits?

Updated: Feb 23, 2022

How Often Do Auto Accident Settlements Exceed the Policy Limits? Exceeded policy limits can sometimes result in a financial burden from your side of the accident, even if you are not at fault. It is important to understand your rights and options on the topic.

Of course, everyone's goal is to stay safe on the road, practice defensive and proactive driving, and avoid needless accidents. The unfortunate reality is, a car accident or fault driver's cases still occur in some cases, even if one has done everything to avoid a vehicle crash. When that incident happens, they opt to be covered by insurance companies to not worry about the financial effects of repairing property damage or being treated for injuries. But the question is, what will happen when their insurance companies try to offer them less than they deserve? How often do auto accident settlements exceed the policy limits?

Answering how often auto accident settlements exceed the policy limits can be understood through reading this article. This article will discuss everything about a car accident or auto accident settlement exceeding the policy limits, driver compensation, insurance companies' deals, and settlements exceeding the policy, law, and other related facts. An auto accident settlement doesn’t regularly exceed policy limits of the liability coverage of the driver. To make it happen, a car accident lawyer or law firm will require returning such a verdict at trials that a defendant has enough assets to settle the incident case over the policy liability insurance limits.

We say policy insurance limits often dictate how much an insurance company will pay for an incident. Accumulating injury compensation beyond the insurance policy limits is quite rare, but it does happen to hundreds of people per year. It is always best to ask an expert auto accident attorney to know more about insurance companies and auto accident settlements which exceed the policy limits.

How Do Insurance Policy Limits Work?

How do Insurance Policy Limits work?

The majority of the auto insurance policies have two types:

Bodily injury coverage

This type has two limits. The first limit restricts what the car insurance or insurance company will pay for an individual’s accident/bodily injury or injuries. The second limit restricts what the insurance company will pay for all injuries withstood in the auto accident settlements exceeding cases.

Property damage coverage

Auto insurance agencies contain a dispersed limit for property damage or injuries. Since the policy restrictions for property damage and personal injury or bodily injury are separate, their claim often can’t exceed the restrictions for either one, even if they stay within the total restrictions.

Even if personal injury or auto accident settlements don’t usually exceed the policy limits, suing beyond policy limits, insurance injuries, or accident settlement restrictions is possible. But, it is best to search for other sources to get more compensation.

What are the Ways to Collect Additional Damages?

There are several ways to collect extra damages, especially if the drivers' claim exceeds their policy limits. Here are the top 3:

1. Umbrella Policy

If the defendant has an umbrella policy, there is a chance that they can collect additional damages from that policy. This type of policy can be a perfect way forward when the drivers' claim exceeds their policy limits. This umbrella policy kicks in after other insurance policies have exceeded their maximums.

Company defendants often have umbrella policies compared to individuals. The typical examples of these are trucking or vehicle companies. But, it is essential to recognize what type of coverage the defendant has. That way, they can draw from multiple resources to guarantee that they are properly compensated.

2. Multiple Defendants

Drivers may recover under this type of policy if more than one person can be held accountable for a road incident or car accident. Say, for instance, if they were rear-ended by a delivery vehicle, both the trucking agency and the driver may be responsible.

3. Personal Judgment against the Defendant

Take note that an individual who is ultimately accountable for the road incident is called the defendant. It means that the insurance company pays damages since the defendants have a contract with them. Say, for instance, if the driver’s damages are bigger than the defendant’s insurance coverage policy restrictions, they may be entitled to a judgment that exceeds their policy limits. They could recover the enduring judgment by garnishing the defendants' wages or placing the security of their property.

In addition, an insurance coverage company may act in bad faith claims, especially if they deny a claim even if they know that the claim is valid. If the insurance agency refuses to enter into a sensible settlement that is less than the insurance policy limits, a lawyer could award damages bigger than the restrictions. It means that the liability insurance company may be needed to compensate for the whole judgment.

What Will Happen When a Vehicle Accident Claim Exceeds Insurance Policy Limits?

What Will Happen When a Vehicle Accident Claim Exceeds Insurance Policy Limits?

Here are some of the possible results when a vehicle accident claim occurs and exceeds their insurance limits:

  • The car insurance claim will lead to a settlement with an individual contribution to the policy limits by an at-fault driver

  • A lawsuit or bad faith claim can be pursued, depending on certain bad faith state laws or bad faith regulations

  • A lawyer will return the so-called “over-limits” results against a collectible defendant

  • Fault drivers who cause a road accident should contact reliable car insurance attorneys. These insurance company experts can determine if they have a case or not. If they have a case, an experienced bodily injury or personal injury attorney can help them negotiate with insurance agencies to get their maximum possible compensation.

They will also explain everything about bad faith, underinsured motorist coverage, fault driver's insurance, policy limit, liability insurance, exceeding policy limits, and other related facts. They also value the attorney-client relationship and attorney-client privilege.

How to Find the Best and Knowledgeable Vehicle Accident Attorney?

Most drivers don’t know where and how to find the right attorney with countless options to choose from. This is often observed in emergency vehicle accidents that exceed policy limits. Drivers like you with claims that exceed policy limits need a well-experienced lawyer.

An attorney will review any fault or no-fault driver case, answer their questions, and know the best course of action suitable in a particular situation. If filing a case is in the best interest of the fault or no-fault driver, their attorney will fight aggressively to secure their rights and get them on the road to fiscal recovery. They also often do auto accident validation to help their clientele. Handling these uninsured motorist claims can be challenging, but everything will be okay with the help of a car accident attorney.

Anyone looking for an auto accident lawyer should know the qualities of an experienced and knowledgeable one to ensure that they can solve issues regarding policy limits. Here are some of the qualities every fault driver should consider:

  • Knowledgeable — Not all lawyers have wide knowledge about insurance policy limits and any related insurance coverage law. Every coverage law expert has their own specialization. Therefore, it is necessary to know whether the preferred lawyer specializes in auto accident cases, policy limits, or related car accident cases.

  • Accessible - Bodily injury or a personal injury lawyer should be easily contacted by their respective clients. Thus, it is a must to know how accessible they are. It means that these fault or no-fault driver insurance experts must be willing to answer your calls and any related concerns anytime you need them.

  • Offers Free Consultation — Finding a law firm that offers free consultation and specializes in auto accident law is a perfect step for every fault driver. Through this, every driver doesn't need to spend a lot of money, if any at all, especially during the consultation procedure.

  • Affordable Deal — Though you need experts to handle the insurance company, underinsured motorists, and a claim exceeds, it is a must to look for an affordable one. Look for the best attorney in your local area to handle policy limits, compensation, or insurance coverage cases while still being affordable.

Searching for the best car accident attorney may seem a bit challenging. This is why there is a need for precise assessment of your preferred car accidents lawyers. Road accident situations you may experience vary from one incident to another. It may involve complicated cases with uninsured motorists, exceeding limit policy, motor vehicle damages, settlement law procedures, insurance coverage, driver's property complaint, policy limits compensation, and a lot more.

Do you suffer from a traumatic accident that may have ended with nerve damage? Then, the party at fault will negotiate and compensate you for your losses or property damage. Don’t miss a chance to evaluate your case. Hire a Des Moines personal injury law expert to perform this job.

Bear in mind that legal advice includes guidance on lost wages, exceeds the policy, coverage law, compensation law, liability, road injuries' law, incident liability, and medical care. Instead of worrying about this issue, our firm can help you.

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