What Happens When a Car Accident Claim in Utah Exceeds the At-fault Insurance Limits?
Dealing with the aftermath of a car accident can be overwhelming, especially when the damages exceed the insurance policy limits. In Utah, understanding how to handle such situations is essential to protect your rights and financial well-being. If you find yourself in this scenario, consulting a South Jordan personal injury lawyer can make a significant difference in pursuing fair compensation.
Utah’s Insurance Requirements
Utah is a no-fault insurance state, meaning that the law requires every auto insurance policy to carry personal injury protection (PIP) coverage. PIP typically covers $3,000 of medical bills and some lost wages, regardless of who caused the accident. Therefore, to obtain a fair settlement you will likely have to make a liability claim against the at-fault insurance policy. The minimum liability coverage required in Utah is:
- $30,000 for bodily injury per person
- $65,000 for bodily injury to multiple people per single accident
- $25,000 for property damage per accident
While these minimums may suffice in many accidents, they can quickly be exhausted in more severe cases involving extensive medical expenses, lost income, and significant property damage.
How Often do Utah Case Values Exceed Policy Limits?
More often than you would think. In the case of a catastrophic accident with huge medical bills or where there are multiple injured parties making claims on the same policy, it is common for the values of the case to exceed policy limits.
How Often Do Insurance Companies Pay Out More Than Their Policy Limits?
Never. An insurance policy is a contract between the insurer and the insured. The insured agrees to pay for a specified amount of coverage (policy limit) at a specified price and the insurance company agrees to pay out the coverage when appropriate. The insurance policy limit sets the maximum amount the at-fault insurance company will pay to a single injured person in a car accident, multiple people injured in a single car accident, and the maximum they will pay for damage to property (your car, etc.) in a single accident. Therefore, the insurance is only contractually obligated to pay up to the limit of the policy and there is no incentive or requirement for them to pay more.
Options When a Claim Exceeds At-Fault Insurance Limits
If the damages from your car accident exceed the at-fault party’s insurance policy limits, here are the steps you can take:
- File a Lawsuit
- If the at-fault insurance company isn’t even offering you the full policy limits, you can file a lawsuit against the at-fault driver to obtain the policy limits. One of our skilled South Jordan personal injury lawyers at True North can help evaluate your case and determine the best legal strategy.
- If the insurance company is offering you the full policy limits, you could file a lawsuit against the at-fault driver to recover compensation from their personal assets. However, where drivers have low insurance limits, there are usually no significant assets. Therefore, this option is not feasible most of the time.
- Pursue A Claim Against Other Liable Parties
- In some cases, there are multiple drivers who bear some portion of fault of the collision. You could potentially make claims against them. There may also be employers, vehicle manufacturers, or government entities that may share liability for an accident. If you find an additional liable party, you can file claims against them for additional compensation. One of our lawyers can help you figure out how to identify these additional parties.
- File a Claim Under Your Own Insurance
- Uninsured/Underinsured Motorist Coverage (UM/UIM): If you have UM/UIM coverage, you can file a claim with your own insurer to recover damages not covered by the at-fault party’s policy. It’s a good idea to have higher UIM limits to avoid problems in the event you are hit by someone with low limits.
- Consider a Settlement for Partial Compensation
- If the at-fault driver has minimal assets and low policy limits, settling for the policy limits available (less than the full value of your case) might be worth considering because it allows you faster resolution, avoids costly litigation, and allows you to move on with your life. Lawsuits can take years and put you in a constant state of anxiety. Some people prefer to get what they can and move on.
- Work With Your Health Insurance Company
- If your medical bills are in excess of the available policy limits, you can try to work out a deal with your health insurance company where they pay for all the accident-related expenses in exchange for receiving some or all of the settlement monies that you receive. This allows you to walk away from the crash having received all the necessary treatment, recovered your health, and having all your bills paid. But, it could potentially result in your receiving little or nothing in your pocket from the settlement proceeds.
Why You Need a South Jordan Personal Injury Lawyer
As you can see, navigating complex insurance claims and legal proceedings requires expertise. The best thing you can do if any of these circumstances applies to you is contact an experienced car accident attorney. Here’s how the South Jordan personal injury lawyers at True North Injury Law can assist:
- Assessing Your Case: A lawyer will evaluate your damages and insurance coverage to identify all potential sources of compensation.
- Identifying Strategic Options: Based on the facts of your specific case, a lawyer can help you identify the options available in difficult circumstances.
- Negotiating with Insurers: Insurance companies often aim to minimize payouts. An attorney can negotiate on your behalf to secure a fair settlement.
- Filing a Lawsuit: If necessary, your lawyer can represent you in court to pursue compensation beyond the insurance limits.
Conclusion
When a car accident claim exceeds insurance limits, recovering a settlement that covers all your bases can be challenging but not impossible. By leveraging your own insurance, exploring other avenues for compensation, and consulting the South Jordan personal injury lawyers at True North Injury Law, you can take the necessary steps to protect your financial future. If you’re facing this situation, schedule your free consultation today by calling 801-849-3664 today.