Although car accidents happen every day, no person experiences them every day of their lives. When you’re in a car accident, you may know that your insurance coverage is there to cover the injuries and damages you cause if you are at fault or even partially at fault.
However, you may not know what to do if you are sued for more than what your insurance covers. A lawsuit beyond insurance coverage is typically the next step you’d take against the at-fault driver. If you’re being blamed either partially or fully for the accident, it is imperative that you understand your insurance policy limits and your legal rights.
The Issa & Castro Law Firm is committed to providing legal guidance for those involved in car accidents. Insurance coverage and policy limits can become a confusing point in the aftermath, and if you’re facing a lawsuit or need to file one against the at-fault driver, this blog post explains what you need to know.
Explanation of Insurance Limits and Insurance Coverage
Insurance policy limits are the maximum dollar amounts that a car insurance company will pay for a claim. Bodily injury liability is the maximum the insurance company will pay for medical expenses, lost wages, and other damages for every person who was injured in a car accident. Property damage insurance policy limits are the maximum amount the insurer will pay to cover the damage caused to other people’s property.
In Georgia, there is a minimum insurance coverage required by law, and every driver must have it. These requirements specify that drivers must have at least $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability coverage per accident.
Unfortunately, many people only stick with the minimums to keep their expenses low. That means that if they are involved in a major motor vehicle accident and their insurance covers only these minimum liability coverage amounts, they might face a lawsuit from the other party. Similarly, if you are in a car accident caused by someone else and suffer serious injuries that go beyond the liability coverage policy limits of the at-fault driver, you could hold them personally responsible for your damages.
What Happens If Someone Sues You for More Than Your Insurance Covers?
What happens if someone sues you for more than your insurance covers? Unfortunately, nothing good. When there are catastrophic injuries, a driver’s insurance usually isn’t enough to cover medical bills for the injured person. If you are deemed the at-fault driver, you will be responsible for paying whatever amount is not covered through your insurance company.
Personal Asset Risk
When you are held personally responsible due to exceeding your standard insurance limits, your checking and savings accounts, home, and personal property, including any other vehicles you own, could be seized.
Wage Garnishment
Orders from the court may also demand a portion of your wages to be garnished, which can impact your financial future.
Steps to Take If You’re Being Sued by the Other Driver
If you are being sued, you should notify your insurance company immediately. While they have a duty to defend you, the next step you take should be to contact a personal injury attorney.
Most car accidents have some level of shared fault, and it is also possible that you may be named the at-fault driver even if you’ve done nothing wrong. You should at least seek the advice of a personal injury attorney, and most offer a free consultation that will allow you to understand your legal options in this situation.
How The Issa & Castro Law Firm Can Assist in Negotiations with Plaintiffs and Car Insurance Companies After an Auto Accident
After an auto accident or motorcycle accident, the Issa & Castro Law Firm can help you work with the other driver’s insurance and determine whether you were at fault. You may have injuries of your own, or you may be blamed for causing harm to the other injured party.
Many car accidents can be unclear about who is at fault. If your insurance is at the minimum levels, it is possible that an injured party could sue you for damages. With a personal injury attorney from our team on your side, we can ensure you are represented fairly and fight for a favorable outcome.
Legal Options Available When Damages Exceed the Policy
When a car accident causes severe injuries that go beyond the limits of a policy, the victim has the right to pursue other legal options.
Suing the At-Fault Driver
In most cases, if the insurance company has reached its limits with the policy, a personal injury lawsuit can be filed against the at-fault driver to seek the remaining amount of damages. If successful, the courts can issue a judgment against them, and their assets may be used to pay the damages. Wage garnishment may also be applied to collect from this party.
Suing Other Liable Parties
In these situations, there may be additional liable parties who are at fault beyond the other driver. For example, if the driver was performing their job duties while driving, their employer may be held liable through its commercial insurance company.
Some cases are even more complex, involving a vehicle defect that contributed to the accident. In those instances, the vehicle or parts manufacturer may also be sued for damages. It is also possible to sue a government entity if they are found to have created an issue that would cause an accident, such as poor road maintenance.
Use Uninsured/Underinsured Motorist Insurance
Accident victims may use their own policy to step in for added compensation in scenarios when the other driver is either not insured or underinsured. You can file underinsured motorist claims, an optional policy, if you have it in your coverage, if the other driver’s coverage is insufficient.
Importance of Legal Representation in Complex Insurance Cases
Unfortunately, comparative negligence rules in Georgia may mean that even as an injured person, you could be blamed for the accident. If you are assigned more than 50% of the blame, you will not be able to pursue compensation.
The situation can get very complicated when you are named the defendant in a civil lawsuit. It can add more stress to an already stressful situation, and when you have a lawyer on your side, they will take on all aspects of the case.
An attorney can gather all the evidence and investigate what happened. They can also fight to ensure your rights are protected and that you aren’t named as an at-fault party if you did nothing wrong.
When there are multiple parties involved, it is absolutely imperative that you seek legal guidance from a personal injury lawyer who has legal experience with these types of claims.
Strategies for Protecting Personal Assets with High Net Worth Individuals
When someone sues a high-net-worth individual, protecting assets is crucial. The most basic strategy is to be proactive rather than reactive, and that comes from establishing measures before an accident ever occurs.
As such, maximizing your coverage is the best defense to protect yourself from a claim like this. Sticking with the basic amounts of coverage can leave you vulnerable when there’s a severe accident. For this reason alone, it is best to choose higher coverages, which will protect you if someone sues.
Another smart strategy is to have an umbrella policy. With this policy, you get coverage that goes beyond standard auto and homeowner coverages. If you are a high-net-worth individual, you should choose a policy with limits that match or exceed your net worth to protect you in the event of a crash.
The Role of Umbrella Insurance Policies
It should be understood that you do not need to be a person of high net worth to have an umbrella policy. If you own any assets such as a home, it does not need to be a palatial estate to be threatened by the possibility of seizure after an accident.
Umbrella policies provide additional liability cover for you that goes beyond what your auto insurance provides. It is worth a conversation with your insurer to determine the best fit to fully protect yourself from a lawsuit if you are found to be at fault in a crash.
FAQs About Insurance Limits
Why Do Policy Limits Matter?
The limits of a policy matter because they are the maximum amount that an insurer will pay for an accident or covered event. When the damages from a car crash go beyond that amount, it can only pay out up to that limit. This leaves victims with debts from medical bills, lost wages, and other financial damages.
Many people only purchase the minimum coverage, leaving themselves vulnerable to personal injury cases to cover the remaining balance. While it is more expensive to purchase coverage beyond the minimum, drivers are encouraged to do so for added protection should such an event occur.
How Can a Claim Exceed Policy Limits?
Claims in car wrecks can easily exceed the limits when the accident is severe and produces catastrophic or severe injuries. Victims whose lives are completely altered by their permanent injuries will have very costly medical expenses, and they may need ongoing medical care for the rest of their lives.
If the victim in a car crash suffered a traumatic brain injury, severe burns, spinal cord injuries, amputation, or was paralyzed, the claim will surely exceed this limit. Extended hospital stays, multiple surgeries, and other complex medical treatments will add up quickly. Drivers should make sure they are protected by adding additional coverage for these reasons.
What Should I Do When an Accident Claim Exceeds the Policy Limits?
When you are the victim, you should work with a personal injury lawyer who can help you pursue assets from the other party. They may have savings or other assets that can be used to cover your remaining damages. They also may have an umbrella policy, but if they don’t, and you have an underinsured motorist as part of your coverage, you can get compensation for your claim.
When insurance is exhausted and the other party has plentiful assets, you can also sue them for damages, particularly if they’ve caused you serious injury.
What If I’m the At-Fault Driver?
Unfortunately, if the accident is your fault and comparative negligence assigns you more fault than the other driver, you may have your wages garnished or your assets seized if your insurance is not enough to cover the damages.
Do I Really Need to Hire an Attorney If I’m Being Sued After a Car Crash?
While there are no laws that state you must hire legal counsel, it is in your best interests to seek immediate legal representation. There are many reasons for this, such as if you are being blamed for the accident when you didn’t do anything wrong, though even if you made an error while on the road, you will want a fair outcome.
If you only have coverage in the minimum required levels, you have already left yourself incredibly vulnerable. An attorney will evaluate your accident, investigating the scene and obtaining all the evidence to help strengthen your claim. When you aren’t at fault, they will work to prove negligence of the other party, but if you are being blamed, they will use the evidence to counter these claims.
Auto wrecks can be devastating, not just physically but also emotionally, and with injuries, it can be hard to figure out what you should do next. Consulting with an attorney ensures you have someone advocating for you and guiding you through the legal process to find resolution through compensation.