What Happens When My Car Accident Claim Exceeds Insurance Limits?

Male driver suffering head injuries from rear end car collisions.

If you’ve been injured in a car accident, the last thing you want to hear is that the at-fault driver’s insurance won’t cover all your expenses. To find additional compensation, you can sue the other driver, use your uninsured/underinsured motorist coverage, or look for other potentially liable parties.

An experienced car accident attorney can review your options, which will depend on the unique details of the accident.

What Is a Car Insurance Policy Limit?

A car insurance policy limit is the maximum amount an insurance company will pay for a claim under their policy. This limit is agreed upon when you purchase insurance and affects how much coverage you have after a car accident. These limits determine the financial protection you have for injuries or losses you or others might suffer in a collision.

Understanding your policy limits is important because it helps you know what you might have to pay out of pocket if the costs of an accident exceed these amounts.

What Are Arizona’s Minimum Liability Insurance Coverage Requirements?

According to the Arizona Department of Insurance and Financial Institutions, all auto insurance policies issued in the state must have the following minimum coverage amounts:

  • $25,000 for bodily injuries to one person in an accident
  • $50,000 for bodily injuries to more than one person in a single accident
  • $15,000 for damage to someone else’s property

While Arizona does not require auto insurance policies to include uninsured motorist (UM) and underinsured motorist (UIM) coverage, your coverage must meet the above minimums if you add it to your policy.

What Types of Car Accident Injuries Often Cause Losses Beyond Insurance Limits?

Car crashes can result in severe injuries, leading to financial losses exceeding typical insurance policy limits. Medical costs, long-term care, and other expenses for treating catastrophic injuries can quickly exceed the limits of an at-fault driver’s policy, leaving victims with significant out-of-pocket costs. Some injuries that cause losses beyond typical insurance limits include:

  • Traumatic brain injuries (TBI) – TBIs can range from mild concussions to severe brain damage. These injuries can impact victims’ cognitive functions, physical abilities, and emotional well-being. The cost of treatment and ongoing care for TBIs can be expensive, as patients often require specialized medical attention and long-term rehabilitation.
  • Spinal cord injuries – These injuries can lead to partial or complete paralysis, requiring modifications to the home, long-term medical care, and assistive devices. These costs are very high and may last for years after a crash.
  • Severe burns – Extensive burns might require multiple surgeries and prolonged hospital stays. The recovery process for severe burns often includes specialized treatment to manage pain, prevent infection, and minimize scarring, which can be financially overwhelming.
  • Amputations – Losing a limb in an accident leaves car accident victims with both significant, immediate medical expenses and the need for prosthetics and physical therapy. The ongoing need for prosthetic adjustments and replacements can make these costs immense.

What Are Some Options for Securing Compensation Beyond the At-Fault Driver’s Limits?

There are a few potential options to pursue additional compensation if the at-fault driver’s insurance won’t cover all your losses from a crash, including:

  • Personal injury lawsuit You could sue the other driver or another at-fault party directly to recover your additional expenses. However, they may not have enough assets to cover your losses, so this is not always a viable strategy.
  • UM/UIM coverage – If you have uninsured/underinsured motorist coverage, you can use it to make up the gap between your losses and the other driver’s insurance. You can’t use this coverage if you don’t have it before a crash, though, and your insurance company may dispute your claim.
  • Umbrella coverage – Some auto insurance policies include “umbrella coverage” that provides additional compensation beyond what standard auto insurance provides. If the other driver or another at-fault party has umbrella coverage, you can file another claim to seek more compensation.
  • Medical insurance – You can use your health insurance coverage or other insurance to pay your bills from a car accident. However, these policies may not cover your lost income or certain other losses from a crash.

The best way to maximize your compensation after a car accident is to work with an attorney who can help you evaluate all your options.

What Is Insurance Bad Faith, and How Might It Apply to a UIM Claim?

Insurance bad faith occurs when an insurance company denies a valid claim without a reasonable basis or refuses to pay promptly and fully. In the context of a UIM claim, bad faith might occur if your insurance delays or denies your claim without a good reason, even though the coverage should apply.

We’re here to stand up for your rights. If you suspect your car insurance company is not handling your UIM claim fairly, our team can investigate and help you take action to see that they meet their obligations to you.

Injured driver on crutches facing at his damaged car.

Why Do You Need Our Attorneys to Assist with Your UIM Claim?

When you’re involved in a car accident with an underinsured motorist, it’s crucial to make the most of your insurance coverage – including UIM coverage if you have it. Unfortunately, your insurance company might dispute your claim, preventing you from getting the money you need for a full recovery. Our attorneys can help by handling the intricate insurance claims process to help you demand the maximum compensation possible. We understand how to challenge low insurance offers and can negotiate effectively on your behalf. We can also explore other legal avenues to pursue the funds needed for your recovery. Let us handle the legal details so you can focus on healing.

Talk to Our Arizona Car Accident Attorneys About Your Legal Options

At Mushkatel, Gobbato, & Kile, P.L.L.C., our Arizona car accident attorneys are committed to helping you find a way forward. Our team will explain your legal options, assist in dealing with insurance adjusters, and discuss potential ways to seek the full amount you need to heal and move forward. Call us today for a confidential case evaluation to learn more.

Visit Our Arizona Car Accident Law Offices

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About the Author

Zachary Mushkatel discovered his affinity for the law by chance. As a political science major at the University of Arizona, he first aspired to become a professor. But an unexpected invitation to participate on a mock trial team at the university encouraged him to turn his competitive spirit and drive…