What Happens When a Car Accident Claim Exceeds Insurance Limits in Alabama?

If you learn that your car accident claim exceeds the at-fault party’s insurance limits, you have options. Your uninsured motorist (UM) or underinsured motorist (UIM) coverage, health insurance, or a lawsuit against the other driver can all help you recover more compensation. However, it’s hard to win these cases without help.

An Alabama car accident lawyer from Gartlan Injury Law is a valuable ally in these stressful moments. Our Alabama car crash lawyers are ready to review your legal options and help you find the best path to recovering the money you need to cover all your accident-related losses.

Contact us now for a free consultation with an experienced personal injury attorney to learn how we can help you maximize your compensation in a car accident claim.

What Are Alabama’s Minimum Insurance Coverage Amounts?

The Alabama Department of Revenue lists the required coverage every auto accident insurance policy must include. According to the most recent available information, every policy must provide at least this amount of liability coverage:

• $25,000 in bodily injury coverage if one person sustains bodily injury in a car crash
• $50,000 in bodily injury coverage if multiple people suffer bodily injury in the same car wreck
• $25,000 in property damage coverage per accident

Any driver with an Alabama auto insurance policy should have at least this much coverage after an accident. However, not all drivers carry insurance, or their coverage might not meet the legal minimums. In many cases, the minimum coverage may not cover all your injuries and other losses from a severe crash. Therefore, we recommend you purchase additional insurance coverage if you can afford it.

What Are My Options to Collect Compensation If My Claim Exceeds Policy Limits?

Discovering that your automobile accident insurance claim exceeds the auto insurance policy limits of the at-fault driver can feel like hitting a wall. But even if it seems like you’re out of options, there could still be paths to pursue to make sure you get the support you need to seek the compensation you need.

Here are some potential options if your car accident claim exceeds insurance limits:

• Uninsured and underinsured motorist coverage (UM/UIM) – If you have optional UM/UIM coverage on your policy, it can be a lifeline when your losses exceed the policy limits available from the other driver’s insurance company. UIM coverage is designed to kick in when the at-fault driver’s coverage limits are insufficient to pay your medical bills and other losses. However, not all auto insurance policies include this coverage. Alabama law requires all insurance companies to offer UM/UIM coverage, but you can decline it. Our Alabama car accident attorney can review your insurance policy documents to see if your policy includes UM/UIM coverage. If it does, we can fight for the full benefits you deserve from your own insurance company under the policy.
• Umbrella insurance coverage – Umbrella policies provide extra coverage beyond what’s included in standard auto and homeowners policies. If the other driver has this type of insurance, it might cover additional costs that exceed their auto policy limits.
• Filing a lawsuit against the other driver – Sometimes, the only way to recover full compensation for your losses is to take legal action directly against the at-fault driver. That can lead to compensation beyond the driver’s insurance policy limits, especially if they have significant assets that can cover your personal injury claim. Unfortunately, many motorists without sufficient insurance coverage also lack the assets to pay a judgment.
• Your health insurance – Don’t forget about your health insurance coverage. It can cover your medical treatments after an accident. There might be a deductible or copay, but it can be a crucial resource for managing your healthcare costs.
• Seeking compensation from other sources – If the accident involved multiple vehicles or parties, other insurance policies or assets might provide additional money. For example, if the driver who hit you was working at the time of the accident, their employer might be vicariously liable for the crash, which means you could file a claim against them.

Are Some Injuries More Likely to Require Compensation Above Policy Limits?

Some car accident injuries are so severe that the costs for medical care, rehabilitation, and lost wages far exceed typical auto policy limits. Some examples of serious injuries include:

• Traumatic brain injuries (TBI) – TBIs can range from relatively mild concussions to severe brain damage. People with TBIs often require long-term medical care, rehabilitation, and potentially lifelong support.
• Spinal cord injuries – These injuries can lead to partial or complete paralysis. People with severe spinal cord injuries frequently need extensive medical treatment, adaptive equipment, and modifications to living spaces in addition to ongoing care.
• Severe burns – Serious burn injuries may necessitate multiple surgeries, including skin grafts, as well as long-term rehabilitation therapy to manage pain and restore mobility.
• Amputations – Losing a limb in an accident creates a need for prosthetics, adaptive devices, and potentially years of physical therapy to adapt to new ways of moving and living.

How Can I Protect Myself in Case of Severe Injuries?

Preparing for the unexpected is crucial to protect yourself from financial strain after a severe car accident. For example, adding UM/UIM coverage to your policy can offer a safety net if the at-fault driver lacks sufficient insurance.

Adding collision and comprehensive coverage to your policy is another smart move if you can afford it. Collision coverage helps pay for repairs to your vehicle after an accident, regardless of who caused the collision. Comprehensive coverage, on the other hand, protects you against non-collision-related incidents, such as theft or natural disasters. Both types of coverage provide a broader safety net, ensuring you’re not left stranded financially after unforeseen events.

Consider investing in an umbrella policy as well. This extra layer of insurance kicks in when the costs of a claim exceed the limits of your standard auto insurance policy, offering additional peace of mind and protection against significant financial losses.

Periodically reviewing and increasing your policy limits can keep you ahead of rising medical costs and repair expenses. As your life changes, so do your insurance needs. Ensuring your coverage reflects your current situation is pivotal in providing the protection you need.

How Long Do I Have to File a Car Accident Lawsuit in Alabama?

In most circumstances, you have two years after an Alabama car accident to file a lawsuit against the other driver and any other liable parties. If you have significant expenses after a crash, it’s essential to speak with a lawyer immediately. Our skilled car accident lawyers are ready to review your options for pursuing maximum compensation and help you find the best path forward.

Contact an Alabama Car Accident Lawyer

Our Alabama personal injury lawyers have extensive experience with car accident cases and understand your challenges. We’re here to guide you through this difficult time in your life and help you reach a favorable outcome through a UIM claim and other potential sources of financial compensation.

Contact Gartlan Injury Law today for a free consultation.

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Aaron Gartlan

Aaron Gartlan is a graduate of Troy University and the Thomas Goode Jones School of Law who focuses his practice exclusively on representing those injured by the wrongdoing of others. He is member of the National Trial Lawyers Association’s Top 100 Trial Lawyers, Million Dollar Advocates Forum and Multi-Million Dollar Advocates Forum. In addition to his legal practice, Aaron teaches Business Law as an adjunct instructor at Troy University’s Sorrell College of Business and serves as a field artillery sergeant in the Alabama National Guard.