What Happens When a Car Insurance Claim Exceeds Policy Limits?

You can do everything right after a crash. You call the police, seek medical care, keep your records, and cooperate with insurance companies. Even so, you may encounter a considerable hurdle in seeking the compensation you deserve: Policy limits.

When the at-fault driver’s insurance policy limit falls far short of your actual losses, will you have to pay out of your own pocket for accident-related damages? You shouldn’t, as policy limits are a hurdle that can be overcome with the right Greenville car accident lawyer leading your case.

The insurance company may stop paying once the limit is reached, but your claim does not automatically end there. We will explore all available insurance coverages (including your own policy) and the possibility of filing a lawsuit against those who are personally responsible for your damages. For us, you having to pay out of pocket is not an option.

This situation comes up frequently in South Carolina, and it’s one our lawyers are familiar with. If you need fair compensation after a car accident, call Jordan Law Center or contact us online to complete your free, no-pressure consultation.

What Is a Car Insurance Claim?

Before we discuss what happens when a “car insurance claim” exceeds “policy limits,” we should define each of these terms.

A car accident claim is a formal request for payment based on injuries and losses caused by a collision. A complete claim usually includes:

• Proof that another driver caused the crash (which might include evidence such as a police report, witness statements, photographs, and video of the collision)
• Medical documentation of accident-related injuries
• Records showing the accident’s financial effects
• A narrative accounting of how the injuries changed your daily life, erased your sense of comfort, compromised your independence, and affected you psychologically and emotionally

You may have filed one or more car insurance claims before. However, each claim stands independent of all others, and that applies to each claim’s unique financial value.

Our South Carolina car accident attorneys work to position car insurance claims for success from the beginning.

What Policy Limits Really Mean in South Carolina

We have defined “car insurance claim,” so let’s now discuss “policy limits.”

Policy limits are the maximum amount an insurance policy will pay for a covered claim. These are not loose guidelines but firm caps established in the policy contract.

Auto liability policies usually separate coverage limits into categories:

• Bodily injury per person
• Bodily injury per accident
• Property damage

In South Carolina, the required minimum liability limits are relatively low. Vehicle owners’ insurance must cover a minimum of $25,000 per person for bodily injury and $50,000 for all persons injured in one accident.

This is a lot of money in a vacuum, but not much when you consider how costly a car accident can be. The cost of a single emergency room visit or surgery can exceed these limits.

What Happens When The Cost of a Car Accident Is More Than Insurance Policy Limits?

Most car accident claims follow a similar timeline:

• The claim is investigated and valued (by both insurers and the victim’s attorney) based on evidence and medical records
• The victim’s lawyer makes a financial demand, often asking the insurer to pay its full policy limits
• The insurance company decides whether to meet the lawyer’s demand, contest fault, delay, or take another approach

If the insurance company pays your claim up to the policy limits, you still have a problem. You have additional damages (the ones that were beyond the coverage limits) that you need compensation for, lest you have to pay out of pocket.

At Jordan Law Center, we plan for this possibility. When insurance companies’ policy limits are reached, we identify where the additional funds may come from.

Who Pays for Damages Beyond Insurance Policy Limits?

When accident damage exceeds car insurance limits, the unpaid portion does not simply disappear. The remaining damages may be pursued from other sources, which might include:

• The at-fault driver
• Your own insurance provider (through uninsured or underinsured motorist coverage)
• A vehicle owner who allowed an unsafe driver to use their car
• An employer, if the at-fault driver was working at the time of your accident
• A municipality in South Carolina, if hazardous road conditions contributed to your accident

Our team will obtain all the relevant facts and evidence so we can identify every possible path to the compensation you deserve.

The Types of Damages Accident Victims Commonly Deserve

A fair car insurance claim reflects the full cost of an accident victim’s damages, which might include:

• Immediate and long-term medical bills
• Rehabilitation costs
• Physical pain
• Emotional anguish
• Psychological distress
• Lost wages
• Diminished earning capacity
• Vehicle repairs
• Replacement of a totaled vehicle
• Temporary transportation costs
• Scarring (and any other types of disfigurement)
• The economic and non-economic costs of a disability

It’s plain to see how the cost of a car accident could quickly exceed insurance policy coverage limits.

How Our Car Accident Lawyers Help Clients Get Fair Compensation (Up to Policy Limits and Beyond)

No auto accident victim should have to worry about calculating their damages, figuring out how they stack up against policy limits, and what to do if insurance companies don’t cover their accident-related losses.

Let us handle these pivotal but complicated concerns, as our team can assist you by:

• Securing evidence to prove fault for your accident (which is the foundation for the rest of your case)
• Documenting each of your accident-related damages
• Calculating your case value
• Scouring all applicable insurance policies (and noting critical details like policy limits)
• Demanding fair and maximum compensation from insurers
• Pursuing any additional steps in pursuit of fair compensation, which may include filing additional insurance claims, filing a lawsuit, and going to trial

Some clients ask, “How often do auto accident settlements exceed the policy limits?” Our answer is “Often enough that we have extensive experience dealing with this challenge.”

Your case is familiar territory for the team at Jordan Law Center. Let us fight for the compensation you deserve.

A Car Accident Attorney Can Help When a Car Insurance Claim Exceeds Policy Limits

If your medical bills and losses are rising and the insurance company is already citing its policy limits, it is time to have a serious conversation about next steps.

Do not wait to contact the Jordan Law Center for your free consultation. Learn more about how a South Carolina car accident lawyer can benefit you. Don’t worry, our lawyers only receive a fee if they win for you, so there is no stress in retaining our firm.