The damage you sustain from a serious car accident in California can be severe. From treating your injuries to fixing your vehicle, the expenses can feel overwhelming. While a car accident attorney can help you recover compensation for your losses, there are some cases where your financial needs exceed the individual’s insurance policy limits. When an accident claim exceeds insurance, the at-fault party may face personal liability, making it crucial to hire an experienced lawyer to navigate the complexities of pursuing compensation beyond the defendant’s coverage. An individual’s insurance company is not entirely responsible or obligated to pay the total amount of awarded damages.
It is illegal in California to drive a motor vehicle without evidence of financial responsibility. Drivers must have some type of insurance that can cover medical expenses in the case of an accident. These insurance policies limit how much they can provide for an individual’s injuries and property damage. A car accident attorney can help guide you through the process of recovering compensation when the awarded damages exceed the party’s insurance policy limits.
Understanding Car Insurance Limits
Car insurance limits refer to the maximum amount an insurance company will pay out for a covered claim. Understanding these limits is essential to avoid unexpected financial burdens. In California, drivers must carry minimum liability insurance, which includes bodily injury and property damage coverage. The minimum requirements are set at $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage. Knowing these limits helps you understand the extent of your coverage and prepares you for any potential out-of-pocket expenses in the event of a car accident.
Minimum Coverage Requirements
Minimum coverage requirements vary by state, but in California, drivers must carry liability insurance, which covers damages to other people and their property in an accident. This includes bodily injury and property damage. For example, if you cause an accident that injures another driver, your liability insurance will pay for their medical expenses up to your policy limit. Liability insurance does not cover your injuries or vehicle damage. Ensuring you meet these minimum requirements is crucial to staying compliant with state laws and protecting yourself financially.
Types of Car Insurance Coverage
In California, drivers have several options for coverage, each providing varying levels of protection. Liability insurance is the most basic type of car insurance and is required by law in California. Comprehensive insurance provides coverage for non-collision-related incidents, such as theft, vandalism, natural disasters, and hitting an animal. Collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. Uninsured/underinsured motorist coverage protects you if you are involved in an accident with a driver who either has no insurance or insufficient insurance to cover the damages. Understanding these different types of coverage can help you choose the best policy to suit your needs and ensure you are adequately protected.
The Consequences of Exceeding Policy Limits
If your damages exceed your policy limits, you could be responsible for the remaining costs. This can lead to financial consequences, including lawsuits, fines, and increased insurance premiums. Without adequate coverage, you might have to use personal assets to cover the excess costs. It’s essential to review your policy regularly to ensure you have adequate coverage. Being proactive about your insurance coverage can save you from significant financial strain in the event of a serious car accident.
Initial Steps After an Accident
If you’re involved in a car accident, it’s essential to take immediate action to protect your rights. First, seek medical attention if you’re injured. Then, contact your insurance company to report the accident and initiate the claims process. Keep detailed records of your medical expenses, lost wages, and property damage. If your damages exceed your policy limits, consider consulting with a car accident lawyer to explore your options for seeking additional compensation. Taking these steps can help ensure you receive the compensation you need to cover your losses and recover from the accident.
How Can I Receive Compensation That Surpasses Insurance Policy Limits?
Most motor vehicle accident settlements do not exceed the at-fault driver’s insurance policy limits. However, when the acquired financial compensation is not enough to fully recover the harm inflicted, you can discuss some of the options below with a car accident lawyer:
- Bad Faith: If an insurance company tries to refuse to pay a policyholder’s claim, fails to investigate properly, or does not process the claim within a reasonable time, they are participating in “bad faith.” This can cause the insurance company to encounter harsh consequences.
- Umbrella Policies: In some cases, commercial, corporate, and sometimes individuals have an umbrella policy that offers extra coverage above the primary policy amount.
- Suing the At-Fault Driver: You can sue the at-fault driver for the difference in the policy limit. However, not all people can cover the remaining damage, making this option not always applicable.
- Suing Multiple Defendants: When multiple parties are involved in the accident, you can jointly hold them accountable for the rest of your losses.
In rare cases, auto accident settlements exceed the policy limits of auto liability insurance, especially when there is strong evidence of significant injuries and losses.
Every accident and person is unique, so it is vital that you discuss your options with a car accident injury lawyer. They can help determine the best option to recover the compensation you deserve.
Why Should I Seek Assistance from a Personal Injury Lawyer?
With the help of a car accident injury lawyer, you will have an individual who is familiar with the law and its processes to guide you through your case. With unfamiliar terminology and complicated procedures, representing yourself can risk your compensation and rights. Consider the following ways a personal injury lawyer can help you:
- Reviewing legal documents
- Gathering evidence and documentation
- Establishing the other party’s negligence
- Conducting a thorough investigation
- Answering all your questions about the case
- Analyzing for any potential legal issues
- Discussing claims with insurance companies
A reliable lawyer will dedicate their time to help you recover your financial losses. At Younglove Law Group, you can count on our lawyers to protect your rights and interests. Our clients mean the world to us, and we are prepared to do everything we can for you to receive the best possible outcome.
Contact a Dependable Car Accident Lawyer at Younglove Law Group
Car accidents can result in severe injuries. The harm you sustain can cause debilitating, life-threatening injuries, from broken bones to traumatic brain injuries (TBIs). Our experience at Younglove Law Group allows us to share our knowledge and resources with our clients. We have recovered more than $40 million in settlements and jury verdicts, as well as provided trustworthy guidance to all our clients.
To learn more about our services and to schedule a free consultation, call (949) 691-3660 or fill out a contact form today.