It’s a scenario no one expects but far too many personal injury victims face: you’re seriously hurt, the other driver is clearly at fault, but you find out their insurance won’t come close to covering your medical bills, lost income, or long-term needs.
What now?
Many people feel stuck or hopeless when their insurance policy limits are exhausted. But that doesn’t have to be the end of the road.
In this blog, we’ll explain what it means to “exceed policy limits” and why it happens more often than you might think. We’ll also discuss legal strategies that can help you pursue the compensation you truly need.
Understanding policy limits
Every insurance policy has a maximum amount it will pay per accident or per person. In Texas, for example, the minimum auto liability coverage is:
- $30,000 per person for bodily injury
- $60,000 per accident for all injured people
- $25,000 for property damage
That means if you suffer a spinal injury or traumatic brain injury (TBI) that requires hundreds of thousands of dollars in treatment, a minimum policy might cover only a small portion of your damages and medical fees.
What are your options when a policy isn’t enough?
You have several potential avenues toward receiving the compensation you need when the limits on standard liability policies don’t provide enough compensation.
File an underinsured motorist (UIM) claim
Underinsured motorist coverage is a type of car insurance that protects you if you’re in an accident with a driver who doesn’t have enough insurance to cover your damages.
If you carry UIM coverage as part of your auto insurance policy, you may be able to recover additional compensation through your own insurer.
Key things to know about UIM coverage:
- UIM kicks in only after the at-fault driver’s liability limits are paid out
- You must prove that your damages exceed the available liability coverage
- UIM claims are not automatic, and your insurance company may dispute the value of your claim just like a third party would.
Having at least $100,000 in coverage per person on both liability and UIM is sufficient. It’s affordable peace of mind if you’re hit by someone underinsured or, worse, uninsured.
Tip: Bumping up from the minimum $30,000 to $100,000 liability coverage doesn’t always cost much more. Ask your agent for a quote comparison. That extra layer might cost just a few bucks more per month and will protect you from massive medical bills down the line.
BLOG: How much car insurance do I need in Texas?
Pursue other liable parties
Many accidents involve more than one negligent party. If the driver who hit you doesn’t have enough insurance to cover your damages or fees, your attorney will investigate whether others share legal responsibility.
Other liable parties may include:
- Vehicle manufacturers for defective parts or recalls
- Commercial employers if the driver was in a company vehicle at the time (such as a UPS truck)
- Bars or restaurants for overserving alcohol under Texas dram shop laws
- Government entities if poor road design or signage played a role
- Vehicle owners if they knowingly let an unfit driver borrow their car which led to your accident
By identifying additional defendants, you may be able to access additional insurance policies or assets.
Stack insurance policies
Policy stacking is combining or adding together the coverage limits of multiple insurance policies or vehicles to increase the total amount of protection available.
In some cases, Texas allows this form of stacking insurance policies. For example, you could combine multiple UIM policies or multiple at-fault party policies.
However, policy stacking is a case-by-case strategy. For instance, if you want to combine multiple UIM policies, you must be covered under more than one vehicle or household member’s policy.
Your lawyer can explore whether policy stacking is beneficial to you or possible based on your unique situation and insurance language.
What should you do after a serious injury with high damages?
If you believe your injuries will require long-term care, cause a substantial loss of income, or permanently change your life, it’s critical to gather all the right information instead of accepting a quick settlement from an insurer.
Speak with a personal injury attorney who understands how to investigate insurance limits, file UIM claims, and pursue cases similar to yours. Additionally, carefully document all losses such as medical bills, loss of wages and earning capacity, and even physical and mental pain.
Your recovery shouldn’t be limited by someone else’s insurance
Insurance policy limits are not the final word in your recovery. At Crosley Law, our car accident attorneys have helped many clients get the settlements they need to cover damages and medical bills by building strong claims for maximum compensation.
BLOG: What to expect when you call Crosley Law
You still have options. Let’s talk about how we can help you recover what you truly deserve. Call our San Antonio office at (210) 529-3000 or fill out our online form to schedule a free consultation.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
