Getting into a serious car accident in Florida can be overwhelming, especially when you’re dealing with significant injuries and mounting medical bills. But what happens when your damages exceed the at-fault driver’s insurance policy limits? This scenario is more common than you might think, and understanding your options is crucial for protecting your financial future.
Understanding Insurance Policy Limits
Insurance policy limits represent the maximum amount an insurance company will pay for a covered claim. In Florida, drivers are required to carry minimum liability coverage, but these minimums are often insufficient for serious accidents.
Florida’s minimum requirements include:
- $10,000 in Personal Injury Protection (PIP)
- $10,000 in Property Damage Liability (PDL)
- No minimum bodily injury liability requirement (though most drivers carry some coverage)
Many Florida drivers carry only the state minimums or modest coverage amounts like $25,000 or $50,000 per person. When you’re facing medical bills, lost wages, and other damages that total $100,000 or more, these limits quickly become inadequate.
When Damages Go Beyond Insurance Coverage
When a car accident causes injuries or property damage that exceeds the at-fault driver’s insurance limits, the victim may be left with substantial unpaid expenses.
These costs can include:
- Emergency room visits and hospitalization
- Ongoing medical treatment or physical therapy
- Lost wages and loss of future earning capacity
- Pain and suffering
- Property repairs or vehicle replacement
If a claim exceeds the policy limits, the injured party has several legal options to recover the remaining compensation owed.
The Importance of Adequate Coverage
This situation highlights why it’s crucial to carry adequate insurance coverage yourself:
- Consider higher UIM limits: Given how standard underinsured drivers are in Florida, carrying substantial UIM coverage protects you when others don’t have enough insurance.
- Umbrella policies: These provide additional liability protection and are relatively inexpensive for the coverage they provide.
- Higher liability limits: Protecting others (and yourself from lawsuits) by carrying higher liability limits is both responsible and wise.
Your Options When Policy Limits Are Insufficient
1. Pursue the At-Fault Driver’s Personal Assets
You can file a lawsuit against the at-fault driver for the remaining damages.
If successful, you could potentially collect from their:
- Bank accounts and savings
- Real estate equity
- Wages (through garnishment)
- Other valuable assets
However, this option is only viable if the driver has sufficient assets to pay the judgment.
2. Use Your Underinsured Motorist (UIM) Coverage
If you purchased UIM coverage as part of your auto insurance policy, this can be invaluable. UIM coverage pays the difference between the at-fault driver’s policy limits and your actual damages, up to your UIM policy limits.
Example: You have $100,000 in damages, but the at-fault driver only has $25,000 in coverage. If you have $100,000 in UIM coverage, your insurer will pay the remaining $75,000.
3. Explore Other Insurance Coverage
Sometimes, additional coverage sources can help bridge the gap:
- Umbrella policies: The at-fault driver might have an umbrella policy providing additional liability coverage
- Commercial coverage: If the driver was working or using a company vehicle, there might be additional commercial insurance
- Homeowner’s insurance: In rare cases, a homeowner’s policy might provide additional liability coverage
Florida-Specific Considerations
Florida’s insurance landscape has some unique aspects that affect these situations:
- No-Fault State: Florida is a no-fault insurance state, meaning your own PIP coverage pays for initial medical expenses and lost wages regardless of who caused the accident. However, PIP coverage is limited and doesn’t cover pain and suffering or all economic losses.
- Threshold for Lawsuits: You can only sue the at-fault driver for non-economic damages (like pain and suffering) if your injuries meet certain thresholds, such as permanent injury, significant scarring, or death.
- Comparative Negligence: Florida follows a comparative negligence rule, meaning your compensation may be reduced if you’re found partially at fault for the accident.
How a Car Accident Lawyer Can Help When Claims Exceed Policy Limits
When a car accident claim exceeds policy limits, the legal and insurance landscape becomes complex. Hiring our expert Tampa car accident lawyers can make the difference between walking away with partial compensation and pursuing every dollar you’re entitled to.
We help our clients by:
- Identifying all possible liable parties and insurance coverages
- Filing lawsuits against underinsured drivers or negligent third parties
- Investigating potential bad faith conduct by insurers
- Coordinating medical documentation to support maximum compensation
- Negotiating liens and managing payouts to avoid unnecessary loss of funds
We understand how to navigate the complex insurance and civil court systems to hold negligent drivers accountable, even when insurance alone is not enough.
Conclusion
When your car accident damages exceed the at-fault driver’s policy limits, you’re facing a challenging but not hopeless situation. While it complicates the recovery process, several options may still be available to help you obtain fair compensation. The key is to act quickly, document everything thoroughly, and seek experienced legal guidance to explore all available avenues for recovery. Remember that time limits apply to most legal actions, so don’t delay in protecting your rights.
Our Tampa auto accident claim team is here to provide you with the support and guidance you need during this challenging time. Call us at 1-800-451-6786 or fill out our online contact form.