Dealing with a car crash and filing an insurance claim can be difficult, especially when the losses from an accident are much higher than the available insurance coverage. This can become a serious concern after a major collision in Sherman Oaks, where an accident may involve significant injuries, vehicle damage, and multiple drivers.
When an auto accident claim exceeds insurance limits, the situation can become more complicated. The available insurance coverage, the number of people involved, the severity of the injuries, and the circumstances of the crash can all affect what options may be available.
When an Insurance Limits Claim Exceeds Policy in California
After a car accident, the at-fault driver’s liability insurance may provide coverage for certain damages caused by the collision. However, every policy has limits on how much the insurer will pay under its applicable coverage.
If the damages from an accident are greater than the available liability coverage, the insurance policy may not be enough to cover all of the losses.
For example, a serious accident may result in substantial medical expenses, lost income, property damage, and other losses. If the responsible driver’s policy provides limited coverage, there may be a difference between the total damages and the amount available through that policy.
This does not automatically mean that the injured person will recover the entire difference from the driver’s personal assets. The available legal options depend on the facts of the case, the applicable insurance policies, and California law.
Other potentially applicable coverage or responsible parties may also need to be considered.
Why Insurance Limits Coverage Needs to Be Reviewed
It can be difficult for an accident victim to determine exactly what insurance coverage applies. There may be more than one insurance policy involved, particularly when several vehicles were part of the crash.
This is one reason a careful review of the accident and insurance information can be important before accepting a settlement.
LionsGate Law Group APC handles different types of car accident cases in Sherman Oaks and the San Fernando Valley, including rear-end collisions, distracted driving accidents, drunk driving accidents, and multi-vehicle and freeway pile-ups.
What Happens if Someone Sues You for More Than Your Insurance Limits Cover?
If you are the driver being sued after an accident and the claimed damages are greater than your insurance coverage, the situation can be stressful.
Insurance Limits coverage does not necessarily eliminate your potential personal responsibility for damages. However, what happens in a particular case depends on the circumstances, the applicable policy, the claims being made, and the outcome of the legal proceedings.
If you receive a lawsuit or other legal documents, it is important not to ignore them. Failing to respond within the required timeframe can result in serious legal consequences.
Review Your Insurance Policy
A thorough review of your insurance policy can help you understand the coverage available following an accident.
Pay attention to the applicable liability limits, exclusions, and other provisions that may affect coverage. If you are unsure what your policy means, an attorney or qualified insurance professional can help explain the relevant provisions.
For an injured person, it can also be important to determine what insurance coverage may be available from the at-fault driver and whether other applicable coverage should be investigated.
Do Not Ignore a Lawsuit
Receiving a lawsuit after an auto accident should never be ignored.
Legal documents generally contain deadlines for responding. Failing to take action can affect your ability to defend yourself and may result in a default judgment or other consequences.
If you have been sued after a Sherman Oaks car accident, consider seeking legal assistance promptly so you can understand what the lawsuit means and what steps may be necessary.
Hire an Attorney
An experienced car accident lawyer can help you understand the legal issues surrounding an accident claim and the insurance coverage involved.
For an injured accident victim, an attorney can investigate the crash, gather relevant evidence, communicate with insurance companies, and pursue the compensation supported by the facts of the case.
LionsGate Law Group’s Sherman Oaks car accident practice states that its attorneys investigate evidence such as traffic camera footage, police reports, and witness statements when building accident cases. This type of investigation can be particularly important when liability or insurance coverage is disputed.
What If the Accident Involves Multiple Vehicles?
Insurance-limit issues can become even more complicated when several vehicles are involved.
A multi-vehicle collision may involve multiple drivers, insurance policies, injuries, and competing accounts of how the accident happened. Determining who contributed to the collision can therefore be an important part of the investigation.
LionsGate Law Group specifically handles multi-vehicle and freeway pile-up cases in Sherman Oaks, including crashes involving major local freeways such as the 101 and 405.
Rather than assuming that the first driver identified is solely responsible, an investigation can examine the sequence of impacts and the available evidence.
Get in Touch With a Sherman Oaks Car Accident Lawyer
When an auto accident claim is greater than the available insurance coverage, understanding your legal options is important. The situation may involve questions about policy limits, additional insurance coverage, multiple responsible parties, and the evidence supporting your damages.
If you or someone close to you has been injured in a car accident in Sherman Oaks, LionsGate Law Group APC can review the circumstances of your case and explain your potential options.
The firm’s Sherman Oaks car accident attorneys represent people injured in crashes throughout Sherman Oaks and the San Fernando Valley and offer a free case review.
Call LionsGate Law Group APC at 818-574-5494 to discuss your car accident claim and learn about your legal options.
