What Happens When A Car Accident Claim Exceeds Insurance Limits?

What occurs if an insurance claim for an automobile accident exceeds the policy limits? When buying insurance for yourself or making a claim after an accident, many consumers do not know what liability insurance policy limits are.

It could be tempting to limit your coverage purchase to what Georgia law requires in order to save money. However, not having insurance may leave you exposed in the event of an accident. The financial weight of an accident may fall on you even if you are the safest driver and it wasn’t your fault if you don’t have property damage and bodily injury insurance for uninsured/underinsured motorists.

Not having enough auto insurance might be devastating if your injuries are severe.

The Graham Firm wants to arm our Georgia neighbors with knowledge and skills so they will be able to protect themselves legally if an accident occurs. Today, we’ll go through the fundamentals of making a car accident claim and talk about the regrettable but all-too-common situation where the expense of significant injuries exceeds the policy limitations.

What Is A Claim For An Auto Accident?

A request for financial compensation following an accident is known as a car accident claim. You can submit this with either your own insurance provider or the insurer of the other at-fault driver.

Along with pain and suffering, claims may be made for car repairs, medical expenses, lost pay, and other types of damages. If a fair settlement cannot be reached, a claim may develop into a personal injury lawsuit filed in court. Before submitting a claim, it is always advisable to consult with a personal injury attorney. You can get helpful guidance from a lawyer on what to say, what not to say, and how to keep important evidence safe.

Understanding Insurance Policy Limits In Georgia

When you are hurt in an auto or motorcycle accident that wasn’t your fault, the other driver’s vehicle insurance coverage may be able to cover your medical bills, lost wages from being unable to work, and general pain and suffering in addition to paying for your bodily injuries. Your medical expenses and the impact of your injuries will be considered to determine how much you can recover, but there’s a catch.

There are coverage limits in every insurance policy, which represent the highest amount the insurance provider will pay out on a personal injury claim. Obtaining policy limits can be an acceptable settlement when higher insurance levels are available, such as a liability insurance policy with a $1 million cap. The policy limits settlement might be disappointing and regrettable when minimal insurance limits are available.

Every driver must carry a minimum amount of bodily harm liability insurance in Georgia. According to Georgia law, liability insurance must have the following minimum limits:

  • Liability for bodily injury is $25,000 per person and $50,000 per occurrence.
  • Liability for Property Damage: $25,000 per incident.
  • Any injury that is more serious than a slight strain or sprain may cause financial losses that considerably outweigh these claims. Healthcare.gov estimates that a three-day hospital stay typically costs roughly $30,000. Serious injury victims may need extensive hospital stays as well as progressively longer stays in rehabilitation institutes. Financial hardship may result from physical disabilities that require lifelong care.

How to Handle a Car Accident Claim That Exceeds Insurance Limits

One of the most upsetting situations for Georgia personal injury lawyers is when a catastrophic accident results in severe injuries or wrongful death, and then it is discovered that there was either no insurance coverage or only minimal insurance coverage. In a sense, this is a double heartbreak. The significant accident must be endured by the person or family, who then suffer the financial shock of little to no recompense to cover medical expenses, time off work, and lost future earning potential and income.

It is conceivable to sue for damages that go beyond the scope of the insurance, although this is not usually successful. You might not see a penny if the person doesn’t have any assets or money to pay you back. You should discuss your special and specific case with your attorney.

The prospect of colliding with an uninsured driver is another scenario to think about. Approximately 12% of Georgian drivers lack insurance, according to Bankrate.com. This means that there is a 12% possibility that the other driver in an accident with you in Georgia will have no auto insurance at all.

It might be physically, mentally, financially, and emotionally catastrophic if you and a carload of people got hurt.

Louisiana’s auto insurance regulations

Because Louisiana only has a $15,000 per person/$30,000 per accident minimum insurance requirement for bodily injury, it doesn’t take much to surpass the minimum insurance limits that most people carry. Each car must also have property damage coverage that is at least $25,000 in value.

While a major auto accident resulting in catastrophic injuries might quickly surpass insurance limitations, even a minor collision case where the client visits the ER, his or her family doctor, and then a chiropractor for a few months will most likely exceed the minimal limits, as well.

The first $15,000 in bodily injury damages or the first $25,000 in property damages cannot be recovered by an uninsured person through an insurance claim, regardless of the cause of action or right of action. If damages are higher than those stated minimums, the harmed uninsured party may seek compensation for further damages.

Texas has limits on its auto accident policy.

Texas law demands that drivers provide proof of their ability to pay for the accidents they cause. The “30/60/25” liability policy, which covers $30,000 in injury compensation per person, up to $60,000 in injury protection per accident, and $25,000 in property losses, is the bare minimum amount of auto insurance coverage necessary in Texas.

The majority of drivers in Texas carry this level of accident insurance because it is both the minimal legal requirement and the most cost-effective alternative. However, there are a lot more varieties of insurance coverage available, such as:

Additional liability insurance. When you cause an automobile accident and are at fault, liability insurance covers the victims.

While 30/60/25 is the bare minimum in terms of auto accident liability insurance necessary, drivers may also get Personal Injury Protection (PIP) insurance to cover their assets in the event that they cause an accident.

No matter who is at fault, Personal Injury Protection pays for medical expenses, missed earnings, and other expenses in the event of a car accident injury. Although PIP is not mandated by law in Texas, it is frequently covered by car insurance coverage. There is a more constrained version of PIP called Medical Payments Coverage that only covers medical expenses if you or your passengers are hurt.

Insurance for uninsured or underinsured drivers. If you are in a hit-and-run accident, the accident was caused by an uninsured driver, or the driver’s insurance wasn’t adequate to cover your damages, this sort of coverage pays your medical and auto repair costs. Your auto insurance provider must provide you with this coverage in Texas.

collision protection. Regardless of who caused the collision, collision coverage will cover the cost of repairing your car after one. If your vehicle is damaged in another circumstance, such as a flood or theft, comprehensive coverage also covers the cost of auto repair.

As you can see, various types of insurance cover your accident costs regardless of who was at fault or cover your damages if the other driver is unable to pay. Liability insurance covers the damages you may cost others if you cause a car accident.


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