When insurance policy limits don’t cover all the expenses after a serious accident, it can leave a survivor and their family left behind, struggling to make ends meet. You may be wondering, How often do auto accident settlements in Texas exceed policy limits?
There is good news. Auto accident settlements rarely exceed policy limits. However, if your accident expenses exceed policy limits, you have options.
What Insurance Coverage Do Most Drivers Have?
If you’re familiar with the auto accident claim process, you know an insurance claim is a request for financial compensation after an accident. Somebody can file a claim with their auto insurance company or the at-fault driver’s insurance company. Generally, insurance coverage covers financial compensation for vehicle repairs, medical costs, lost wages, pain and suffering, and other damages. A claim might escalate into a personal injury lawsuit when you cannot reach a fair settlement with the insurance company, or the damages exceed policy limits.
Texas law requires all drivers to maintain liability coverage on their vehicles. Specifically, the law requires drivers to carry a minimum coverage limit of:
- Bodily injury coverage of $30,000 for a single person,
- Bodily injury coverage of $60,000 for all injuries in a single accident, and
- Property damage coverage of $25,000.
In the insurance industry, this is called 30/60/25 coverage. Fortunately, many drivers carry higher insurance limits than this. When they do, the coverage could be sufficient to cover your expenses. If it doesn’t, underinsured/uninsured motorist coverage is an additional type of coverage that could help you recover additional damages. Further, if the at-fault driver has an umbrella policy, you may be able to collect more damages after other policies payout. The purpose of umbrella insurance policies is to allow someone at fault for an accident to provide additional coverage to victims experiencing higher expenses.
Many other insurance coverage types and policies are available, and they may apply to your claim. Reaching out to a personal injury attorney is the best way to find out whether additional policies apply.
When Would Accident Expenses Exceed Policy Limits?
The most common category of financial compensation in car accidents relates to medical bills and injury treatment expenses. Any injury beyond a minor strain or sprain can result in financial damages potentially exceeding the at-fault driver’s policy limits. Serious injuries might include the following:
- Spinal cord injuries, including paralysis;
- Traumatic brain injuries (TBIs);
- Amputation of an arm or leg;
- Severe burns; and
- Any injury that results in permanent disability.
The costs of any serious injury requiring significant hospitalization, surgeries, inpatient rehabilitation, and at-home support and nursing care could quickly meet or exceed policy limits. Put simply, when an injury is serious, the expenses may exceed policy limits.
What Should I Do If I Believe My Injuries Exceed Policy Limits?
When an auto accident causes serious injuries, a personal injury attorney can assist you through the claims process. An attorney will review the at-fault driver’s coverage and identify any additional coverage or policies that might apply to your claim. They will also review your coverage to identify what’s available to help. An attorney can negotiate a settlement or hold the other driver liable in a lawsuit to help recover your expenses. If the insurance company is holding out or not paying your claim in bad faith, your attorney will be able to recognize that and hold them accountable. Or, if the other driver was within the scope of their employment, or if a car defect or malfunction caused the accident, an attorney can explore the possibility of suing a third party you might otherwise be unaware of.
Attorneys are invaluable during this process because they have the knowledge and experience to ensure you get the compensation you need and deserve. Their experience helps identify other negligent parties and to pursue a personal injury lawsuit against the driver if settlement negotiations fail.
Contact a Personal Injury Attorney Today
The attorneys at Grossman Law Offices are award-winning personal injury and wrongful death lawyers. For a decade, Michael Grossman has been recognized as one of the top lawyers in Texas. We are no strangers to insurance-related issues after an auto accident. Contact our office today for compassionate and unwavering guidance throughout your claims process.
