A car accident can be a very draining event, both physically as well as financially. Car accidents can cause a lot of property damage, and you may also need to take care of the medical bills after getting your injuries treated. In the worst cases, your injuries may cause you to miss work, leading to a loss of wages. Some injuries may even lead to lifelong disabilities, which can significantly affect your working and living situation as well. In cases like these, you may try to seek compensation from the party at fault, but what happens if the claim exceeds their insurance coverage?
Dealing with something like this can be challenging. If you are facing such a situation, reach out to a Rockford car accident lawyer to figure out what to do next.
How do insurance policy limits work?
Every driver is required to have a minimum amount of liability coverage in the form of car insurance. This is to ensure that everyone is financially protected if a car accident occurs. The minimum and maximum amount requirement limits may vary from state to state and even from provider to provider.
The insurance provider will only be responsible for the maximum policy limit amount. If the damages exceed that maximum amount, that money would have to come from somewhere else. In many cases, the state minimum limit is not enough to cover the losses in a car accident.
How can you collect excess damages?
If the damages you incurred are more significant than the at-fault party’s insurance coverage, you can try a few methods to collect the excess compensation.
Sue more than one defendant
It is possible that more than one party can be held responsible for the car accident, both legally and financially. The different defendants are jointly liable for the various damages in these cases.
Look for umbrella insurance policies.
In some situations, multiple insurance policies may be in play, even when there is only one defendant. These policies are designed to work when the policyholder is liable for damages exceeding the policy’s original limits.
Umbrella policies are mostly only used by big businesses or corporates, but there is still a chance that an individual may have them too. Your lawyer can help you get a clearer understanding of all the policies that the defendant may have.
Try to collect personally from the at-fault party.
If all else fails, your last resource may be to collect the compensation personally from the defendant. You may consult a lawyer and go to court, but whether you can collect the excess compensation or not would depend on the defendant’s situation.