Car accidents can bring unexpected challenges, especially when your total damages exceed the at-fault driver’s insurance coverage. If you’re left with bills beyond what insurance pays, you’re likely asking, What happens when a car accident claim exceeds insurance limits?
In North Carolina, this situation happens more often than people realize. Understanding your options can help you get the compensation you need for medical expenses, vehicle repairs, and other costs.
In this post, we’ll explain what to do when a car accident exceeds policy limits, alternative sources of compensation, and steps you can take to protect yourself financially.
Understanding Policy Limits in Car Accident Claims
Every car insurance policy has a “limit”—the maximum amount the insurance company will pay for damages. In North Carolina, drivers must carry a prescribed minimum amount of coverage, but in a severe accident, these amounts may not cover all the costs.
Most auto insurance policies set separate limits for bodily injury and property damage. For example, a policy might cover up to $30,000 per injured person and $60,000 total per accident for injuries, with a separate $25,000 limit for property damage.
Even if a driver’s minimum coverage meets state requirements, it doesn’t guarantee that all your expenses will be covered after an accident. Full coverage, including higher liability limits, can offer more financial protection but isn’t required by law.
What Happens When a Car Accident Claim Exceeds Insurance Limits?
So, what happens if damages exceed policy limits? When the damages are higher than the at-fault driver’s insurance will cover, the insurance company pays up to the policy limit and no more. That can leave you with uncovered expenses, especially if you have extensive medical bills or vehicle repair costs.
If you find yourself in this situation, there are ways to seek additional compensation beyond the initial insurance payout.
Using Your Own Insurance Policies
Do you have underinsured motorist (UIM) coverage as part of your auto insurance policy? If so, it can help bridge the gap between what the at-fault driver’s insurance pays and your total damages. UIM coverage provides extra protection when another driver’s policy limits are insufficient. Additionally, health insurance might help cover medical costs in some instances, reducing your financial burden.
Suing the At-Fault Driver Directly
Sometimes, you might consider filing a personal lawsuit against the at-fault driver to cover the remaining damages. This approach allows you to pursue compensation directly from the driver’s personal assets. Before pursuing this option, it’s wise to consult with an attorney who can assess whether this path could lead to a meaningful recovery. This option can be challenging if the driver has limited financial resources.
Other Potential Sources of Coverage
Sometimes, additional resources, like umbrella insurance policies or other third-party liability claims against additional parties, can offer extra support for covering accident-related expenses. For instance, if the accident involved a commercial vehicle or another entity, additional policies may exist to tap into.
What Happens If Accident Damage Exceeds Your Car Insurance?
You may face significant financial consequences if you’re the at-fault driver and your insurance doesn’t fully cover the damages. What happens if accident damage exceeds your car insurance? The other party could be looking at your personal assets to cover the rest of their losses. Here’s what to expect and steps you can take to protect yourself:
Financial Implications of Insufficient Coverage
When your policy limits are too low to cover all the damages, you may become personally liable for the remaining balance. In serious accidents, this could include your savings, property, or even future earnings.
Protecting Yourself as a Driver
One of the best ways to avoid these risks is by carrying sufficient liability and underinsured motorist (UIM) coverage. Increasing your liability limits helps protect you when you’re at fault for an accident. Opting for UIM coverage can provide a financial cushion if another party causes an accident with significant damages.
Although these options may add to your monthly premium, they offer peace of mind by protecting you against high out-of-pocket costs in case of an accident.
Contact a North Carolina Car Accident Lawyer
When a car accident exceeds policy limits, navigating the options for covering your expenses can feel overwhelming. But by understanding how insurance limits work, knowing what steps to take, and exploring all available sources of compensation, you can find ways to protect yourself financially.
Whether it’s tapping into underinsured motorist coverage, exploring additional claims, or taking legal action, there are strategies to help cover your costs and support your recovery.
At Mehta & McConnell Injury Lawyers, we understand the stress and uncertainty of handling car accident claims—especially when damages exceed policy limits. With decades of experience helping North Carolina residents recover after serious accidents, we’re here to guide you through the process and explore every option for getting the compensation you deserve.
If you’re dealing with a car accident claim in North Carolina, contact Mehta & McConnell today for a free, no-commitment consultation. Our team is ready to help you take the next steps toward securing the support you need.
Viral Mehta
Viral Mehta is the managing attorney of Mehta & McConnell Injury Lawyers, a Charlotte, North Carolina Workers’ Compensation law firm. He enjoys spending time with friends and family, traveling, sports, and reading.
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