What happens if the damages to my car are greater than insurance limits?
All drivers are responsible for the safety of others on the roads. However, car accidents happen. Some car accidents can lead to small property damage, while others involve permanent disability or serious property damage. All drivers in California are required to maintain car insurance in case an accident happens. Sometimes though, the driver who caused the accident may not have insurance. Other times, the at-fault party’s car insurance policy may have coverage limits that caps the amount of compensation available to a victim or their family after a car accident.
The chances of being the victim of a car accident where the damages are greater than insurance limits are likely in California. Especially because the minimum policy insurance limit required is $15,000 for personal injury and $30,000 for the personal injuries if multiple people are involved. The minimum limit for property damage is $5,000.
There are multiple ways you and an experienced lawyer can recover damages beyond what an insurance company’s policy limits allow. Contacting a skilled attorney at Castillo Law can make a difference in helping you recover the compensation you deserve, especially if your damages exceed policy limits.
Understanding Policy Limits
Understanding car insurance policies and the different types of coverage offered is important if you or a loved one have been injured in a car accident. The most typical policies include:
- Bodily injury liability. This usually include a per-person bodily injury and also a per-accident bodily injury (the group of individuals harmed).
- Property damage liability. This covers damage to vehicles and other property.
- Uninsured/underinsured motorist. Also known as UM, covers the expenses if another person causes the accident and doesn’t have enough insurance to cover the damages.
- Personal Injury Protection. Also referred to as PIP or no-fault. This type of coverage is usually provided as per-person or per-accident limits. It can be used to cover medical expenses, rehabilitation, disability, or loss of income caused by a car accident.
Understanding Damages
It is important to keep in mind that California is an at-fault state. That means that the person must be found to be “at-fault” before the insurance company will initiate any payments. Contacting an experienced motor vehicle accident attorney can help you ensure that you don’t waive your right to purse a claim.
In California, a person injured by a car accident has two years from the date of the accident to file a personal injury claim. Once this two year time frame passes, then the injured person is no longer entitled to collect compensation for injuries. That means that the injured person then has to pay their own damages.
Damages awarded is a monetary award to the injured party. It’s the court’s way of quantifying the harm the victim suffered because the Court has no power to mend broken bones or soothe emotional scars. The amount of damages awarded to any victims is always specific to the injury and the at-fault party’s conduct. That means that damages always vary according to the specific details of a given case. Below are some damages that may be available to victims as a result of a car accident:
- Present and future medical expenses related to the car accident. Even if you have not yet incurred medical expenses, if you have potential future medical bills, you can recover those damages as well.
- Wage Loss. You can recover both past and future wages if your accident caused you to miss work or caused you to reduce hours.
- Pain and suffering. This category of damages refers to numerous non-financial damages. It can include both physical and emotional pain.
- Punitive damages. Punitive damages are rare, but justifiable in some cases when the liable party’s actions that led to the accident were especially horrendous.
Understanding Options if Damages Are Greater Than Insurance Coverage
You are not bound by the at-fault party’s policy limits. If you are injured, you may seek compensation beyond the insurance limitations. The facts of your particular case will determine which options may be available to you.
- Identify Other Liable Parties.
Sometimes, there may be more than one party responsible for the accident. If another party is also responsible for the accident, the injured party can recover damages from them as well. For example, perhaps the driver was driving on behalf of an employer and the accident occurred during the scope of employment. In that situation you may be able to sue the employer’s insurance company to pay for some of the damages.
- Sue the Liable Party Beyond Their Insurance Coverage.
If the policy limits of the at-fault party do not cover your damages, you have the right to personally sue the individual if their negligence caused your accident. However, it is important to keep in mind that litigation can be expensive and many people would not have the ability to pay for medical bills, lost wages, and property damage. Litigation can also be very lengthy and is not be an immediate solution. A skilled attorney can assess whether the at-fault person has enough assets at their disposal to make a personal lawsuit worth the time and expense.
- File a Claim Against Your Uninsured Motorist Policy
Uninsured/under-insured motorist (UM/UIM) coverage is optional in California, but it can be added to your car insurance policy in California. UMC coverage pays when another driver is at fault and either has no insurance at all, or the damages exceed the insurance coverage provided.
Even though California requires that all insurers carry UMC/UIM, such coverage is not mandatory.
Our attorneys at Castillo & Associates take great pride in achieving results. We invite you to schedule a consultation, at no cost to you, by calling 1-800-497-9774.
Attorney Domingo Castillo handles workers’ compensation, personal injury, family law & immigration throughout Southern California from our 5 offices: Indio, Pomona, Riverside, San Diego & Cathedral City. We help clients file injury claims, obtain residency & citizenship, and we assist families through divorce, child custody and all family law matters.
