The average car insurance policy in the United States costs $1,009 per year or about $84 per month. For most people, this is a reasonable amount to protect themselves in case of an accident. But what happens when a car accident claim exceeds insurance limits?
If you’re in an accident that causes more damage than your insurance policy covers, you could be left responsible for paying the difference. This can be off-putting, especially if you need more money readily available.
This blog post will explore what happens when a car accident claim exceeds insurance limits and how you can protect yourself.
What Are the Odds of an Accident Claim Exceeding Insurance Limits?
The odds of an accident claim exceeding insurance limits vary depending on the severity of the accident and the amount of coverage you have. If you have a high-limit policy, your chances of exceeding those limits are much lower than if you have a low-limit policy.
Yet, no matter how much coverage you have, if you’re involved in a severe accident, there’s always a chance your claim could exceed your insurance limits. In such an unfortunate case, you’ll be responsible for paying the difference out of pocket. This can be a financial burden, so it’s important to make sure you have adequate coverage.
So, if you’re concerned about potential claims exceeding your auto insurance limits, you should consider Umbrella Insurance.
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What Happens if You’re at Fault for an Accident and Your Claim Exceeds the Other Driver’s Insurance Limit?
If you are at fault for an accident and your claim exceeds the other driver’s insurance limit, you may be sued by the other driver. Moreover, if the other driver prevails in the lawsuit, you may be ordered to pay damages to the other driver. These damages can include the cost of medical expenses, property damage, and lost wages.
What Happens if You’re Not at Fault for an Accident and Your Claim Exceeds the Other Driver’s Insurance Limit?
Suppose you’re not at fault for an accident, and your claim exceeds the other driver’s insurance limit. In that case, you can file a claim with your insurance company if you have uninsured or underinsured motorist coverage.
You may be out of luck if you don’t have this coverage. You may be able to sue the other driver to try to recover the rest of the money you’re owed, but it’s not guaranteed that you’ll win or that the other driver will have the money to pay you even if you do win.
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How To Avoid Having Your Car Accident Claim Exceed Your Insurance Limit
If you are involved in a car accident, you should first call your insurance company. They will likely ask you for a recorded statement about what happened. So, be sure to give them an honest account of the events, but only offer what is necessary.
Once the insurance company has all the facts, they will let you know your options.
Here are a few things you can do to avoid having your car accident claim exceed your insurance limit:
Make Sure You Have Enough Insurance Coverage: You should always carry at least the minimum liability coverage required by your state. Carrying additional coverage is always a good idea if you can afford it.
Be Prepared to Pay for Some of the Damages Yourself: If you have collision coverage, your insurance company will pay for damage to your vehicle up to the limits of your policy.
However, if you caused the accident, you will be responsible for paying any damages that exceed your policy limit. So, in case you need to pay out-of-pocket expenses, it’s best to set aside some money.
Consult With an Attorney After a Car Accident: An experienced lawyer can help you understand your rights and options and ensure that you receive fair compensation for your injuries and damages.
How Do I Protect My Assets After a Car Accident?
After a car accident, it is important to protect your assets. If your car accident claim exceeds your insurance limits, you may be responsible for paying the remainder out of pocket. There are a few things you can do to protect your assets in this situation:
Review Your Insurance Policy: Make sure you understand what your insurance policy covers and does not cover. This will help you know what to expect if you need to file a claim.
Keep Track of Expenses: If you are responsible for any expenses related to accidents, keep track of them. This includes medical bills, car repairs, and lost wages.
Consider Setting Up a Trust: If you are worried about protecting your assets, consider setting up a trust. This can help shield your assets from creditors if you are sued after an accident.
Talk to an Attorney: If you have questions about protecting your assets after a car accident, talk to an experienced personal injury attorney. They can advise you on the best course of action for your situation.
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If you are involved in a car accident, and your damages exceed the other driver’s insurance policy limits, you may be responsible for paying the difference out-of-pocket. While this can be daunting, we hope this post has helped you figure out how to cover the costs.
Ensure you speak with an experienced personal injury attorney who can help you navigate your options and get the compensation you deserve.
Call or text 800-333-9999 or complete a Free Case Evaluation form