When you sustain a car accident injury in Louisiana, the at-fault driver’s insurance company will typically pay for your medical costs, car repair, lost wages, and other eligible damages. But what happens if the total value of your claim exceeds the policy limits?
If you find yourself asking, “How often do auto accident settlements exceed the policy limits?” the usual answer is “Rarely.” The at-fault motorist’s liability insurance coverage limits the potential settlement offer. However, The Voorhies Law Firm, experienced in auto accidents in New Orleans, can sometimes help you explore other options for claiming compensation.”
What Should You Do If the At-Fault Driver Doesn’t Carry Enough Insurance?
Insurance companies are usually in no hurry to pay victims. Even if your case seems clear, an insurer may try to downplay your injuries, deny responsibility, or accuse you of a bad faith claim. It’s usually better to delegate any communication with insurance companies to an experienced car accident lawyer. A competent attorney can also alert you of other important considerations, like the tax implications of settlements.
However, even supposing your claim goes smoothly, the at-fault driver’s coverage cap limits how much you can claim. In Louisiana, a motorist must carry $15,000 in bodily injury coverage per person and $30,000 per accident, plus $25,000 for property damage. These amounts may be woefully inadequate if you suffer a catastrophic accident with lifelong consequences.
If the driver who hit you doesn’t carry enough insurance to cover your damages, you may have several other options for claiming compensation.
1. Filing a Claim Against the At-Fault Motorist
One possibility is settling directly with the responsible driver. They could agree to pay for any losses beyond what their insurance policy would cover. When agreeing to the settlement, you give up any further claims for this specific accident.
Of course, this arrangement would only work if the at-fault driver has enough assets and is willing to negotiate to avoid going to court. A settlement is the easiest, quickest, and least stressful option of ending your claim.
2. Going to Trial
The responsible driver could refuse to cover your losses. In this case, your attorney may recommend going to trial. A trial can be risky since you must abide by the court’s verdict. However, a strong case could give you a fair chance to win adequate compensation. If the other driver was intoxicated, a court could even grant you punitive damages against the at-fault motorist.
The at-fault driver must pay you once the jury issues you an award. If they refuse, the court can force them to comply by placing a lien on their assets or seizing their property.
3. Using Your UM/UIM Coverage
The best way to protect yourself in the event of a serious collision with an at-fault driver is to carry uninsured/underinsured motorist insurance coverage in your own insurance policy. If you have an uninsured/underinsured motorist policy, you can use it to complement the at-fault driver’s liability coverage. Your UM/UIM coverage can provide a safety net if you’re involved in a collision with an uninsured motorist, if the driver flees the accident scene and the police never find them, or if your losses are worth more than the other driver’s coverage cap.
Uninsured/underinsured motorist coverage isn’t mandatory in Louisiana, but state law requires insurance providers to include this type of coverage in their auto insurance policies unless the policyholder rejects it. A UM/UIM will cover medical bills and car repair costs up to your policy’s limit.
Injured in a Car Accident? Call The Voorhies Law Firm
At The Voorhies Law Firm, we help clients across Louisiana reach adequate settlements in auto accident claims. Our award-winning, dedicated legal team will walk you through all the steps of filing a claim, handle communication with insurance companies, and work hard to negotiate the highest possible compensation for your losses.
For questions beyond “How often do auto accident settlements exceed the policy limits?” and to schedule a free consultation, call (504) 875-2223 or complete our quick online form.
