When a car accident leaves you with huge medical bills and car repair estimates, you might wonder what happens when a car accident claim exceeds insurance limits. At Purvis Thomson, LLP, our Boulder car accident lawyers can help you understand coverage limits and legal options for pursuing compensation over those amounts.
Under Colorado law, drivers are required to carry a minimum amount of liability insurance, which covers them in the event of a crash. The state operates as an at-fault state, meaning the insurance policy of the at-fault driver is responsible for paying for associated damages. A car insurance policy is limited by the maximum amount insurance will pay out, which is set relatively low at the state level at:
If the total cost of a claim exceeds the chosen limit, you are personally responsible for paying the rest. For example, if the damages are $80,000 and your limit is $65,000, you will have to pay the remaining $15,000. State-mandated limits are quite low compared to the damages associated with bad accidents. It is pretty standard for car accident claims to exceed the applicable insurance limits.
While insurance typically will not pay out over the maximum amount, an attorney may be able to help you secure compensation over the insurance limits in a few ways. These methods involve getting compensation from the at-fault driver or using other methods of insurance to cover the difference.
One of the easiest ways to obtain compensation for a car accident claim above insurance limits is to submit a claim under your Underinsured Motorist policy. This coverage works by kicking in after the at-fault driver’s insurance policy limit is met, bridging the gap between their policy limit and the total cost of your damages.
In Colorado, this type of coverage is optional. You should check with your auto insurance policy if you were covered by UIM at the time of your accident. Of course, your UIM policy will have its own limit as well, which could be met in the case of accidents involving severe injuries.
If your car accident claim exceeds the insurance limit of the at-fault driver, you may attempt to hold them accountable for the rest of your damages through negotiating a settlement. This means the insurance company pays the whole amount up to the policy maximum, and the at-fault driver personally agrees to cover the remaining compensation. An attorney can help you determine whether or not this would be a good strategy.
If the at-fault driver and their insurance company are not willing to negotiate a settlement, you may have the opportunity to take your case to trial. A jury is not limited by insurance policy maximums, but awards damages solely on the severity of your injuries and losses. Because of this, you may easily obtain a verdict exceeding the defendant’s policy limits.
If your medical bills and losses are exceeding insurance limits, you may need help from an experienced Boulder car accident attorney to determine the best way to secure a maximum payout. Contact our team for help understanding your legal options.
