Tor Hoerman has represented injured individuals for more than 30 years, with experience spanning individual personal injury cases and nationwide mass tort litigation. His work includes car accidents, catastrophic injuries, product liability claims, and other serious injury cases. Tor has served in court-appointed leadership roles in national litigation and tried cases involving major corporate defendants.
TorHoerman Law’s legal content is researched and written by our editorial team and attorneys for legal accuracy, clarity, and relevance. We rely on statutes, court records, government publications, medical research, and other authoritative sources when applicable. This page provides general legal information and does not constitute legal advice.
TorHoerman Law reviews its legal content for factual accuracy, current information, and relevant legal context before publication and as material developments occur. This article is provided for general informational purposes and does not constitute legal advice. For guidance about a specific case, contact TorHoerman Law.
When a car accident claim exceeds insurance limits, victims may be able to seek compensation through their own underinsured motorist coverage or by suing the at-fault party for the remaining damages.
A lawyer can help assess these options and pursue additional compensation through legal action if necessary.
On this page, we’ll answer the question “What Happens When a Car Accident Claim Exceeds Insurance Limits?” in further depth, explain the steps a victim can take if their damages surpass the at-fault party’s insurance coverage limits, cover options like pursuing additional compensation through your own insurance company, and much more.
Car accidents are unpredictable events that can result in significant physical, emotional, and financial damages.
The National Highway Traffic Safety Administration (NHTSA) reported 8,650 traffic crash fatalities in the first three months of 2024.
In addition to deaths, car accidents also cause thousands of injuries and incidents of property damage each year.
In the aftermath, car accident victims rely heavily on insurance to cover medical bills, property damage, and other associated costs.
When the compensation required exceeds the at-fault party’s insurance policy limits, the situation can become complicated, leaving victims struggling to recover the total amount they deserve.
Insurance policy limits, particularly in cases involving serious injuries or extensive property damage, can create significant barriers to compensation.
This issue is more common than most people realize.
Understanding what to do when damages exceed policy limits is critical in ensuring you don’t face unrecovered losses.
At TorHoerman Law, our skilled attorneys help victims navigate complex car accident insurance claims, especially when their auto accident settlements exceed insurance limits.
Contact us for a free consultation.
You can also use the chatbot on this page to find out if you qualify for a car accident lawsuit instantly.
Insurance limits are the maximum amount an insurance company will pay for a covered claim under a policy.
In auto accident claims, these limits typically apply to two categories: bodily injury liability and property damage liability.
Each insurance policy has specific limits set by the policyholder, often within the guidelines mandated by state law.
The limits are described as two separate amounts:
Personal auto insurance policies vary in their coverage amounts, but typical minimum limits include 25/50/25.
Policy limits include:
While the 25/50/25 policy is the most common, some states have different minimum insurance requirements.
For example, California requires a 15/30/5 policy, while Utah requires a 25/65/15 policy.
It’s essential to know your state’s minimum coverage requirements and consider purchasing additional insurance for more comprehensive protection.
While these limits may seem adequate for minor accidents, serious accidents can quickly exceed these numbers, leaving victims with unrecovered damages.
That’s why it’s crucial to understand what happens when car accident claims surpass insurance limits.
When serious accidents occur, medical expenses alone can quickly exceed the at-fault driver’s insurance policy limits.
Consider a scenario where a victim suffers a traumatic brain injury requiring surgery, rehabilitation, and long-term care.
These medical bills, coupled with lost income, pain and suffering, and property damage, can easily surpass the typical $25,000 bodily injury limit.
In cases where the damages exceed the at-fault driver’s insurance policy limits, victims can be left with substantial out-of-pocket expenses.
Consequences could include:
When damages exceed policy limits, the victim must seek alternative avenues to recover the remaining damages.
The help of an experienced car accident attorney is crucial in these situations.
An auto insurance policy’s underinsured motorist coverage (UIM) component is designed to protect victims when the at-fault driver’s insurance coverage is insufficient to cover all damages.
UIM steps in to pay the difference between the at-fault driver’s insurance payout and the actual costs incurred by the victim, up to the UIM policy limits.
Note that UIM and uninsured motorist coverage (UM) are not the same.
UM covers damages caused by a driver without insurance, while UIM applies when the at-fault driver’s policy limits are inadequate.
Some states require drivers to have both UM and UIM coverage, while others offer it as an optional add-on to a standard auto insurance policy.
Whether you live in a state where UIM is mandatory or not, it’s essential to understand the benefits of having this coverage.
In addition to protecting victims from out-of-pocket expenses when damages exceed policy limits, UIM also:
Having underinsured motorist coverage can provide peace of mind, knowing you are fully protected, no matter the severity of an accident.
Discussing your options with your insurance provider and considering adding UIM coverage to your policy is essential.
If you have UIM coverage and your damages exceed the at-fault driver’s policy limits, you can file a claim with your insurance company for the remaining balance.
This process is often complicated and may require legal assistance to ensure you receive fair compensation.
UIM coverage becomes applicable after the at-fault driver’s insurance has paid out its maximum policy limits.
If the at-fault driver’s insurance pays $25,000 in bodily injury coverage, but the total medical bills are $75,000, a victim with UIM coverage may claim the remaining $50,000 from their own insurance company.
In some states, insurance companies allow policyholders to stack their UIM or UM coverage if they have multiple vehicles on one policy.
This option means that they can combine the limits of each vehicle’s coverage, potentially providing more substantial compensation for damages.
If you have two cars with $50,000 UIM coverage each, you may be able to stack them and claim up to $100,000 from your insurance company.
To file a UIM claim, you must follow these steps:
Timely notification to your insurance company and providing sufficient evidence is essential for a successful UIM claim.
It’s best to have an experienced car accident lawyer guide you through the car accident insurance claims process to ensure all legal requirements and deadlines are met and you receive fair compensation.
Suppose your damages surpass the at-fault driver’s policy limits and you do not have UIM coverage.
In that case, you may consider pursuing a civil lawsuit against the driver to recover the excess amount.
This process can be lengthy and expensive, and there is no guarantee of a successful outcome.
Additionally, the at-fault driver may not have sufficient assets to cover the damages awarded in a lawsuit.
In these cases, recovering any compensation for your damages may be challenging.
You must evaluate whether the at-fault driver has sufficient personal assets to pay a judgment.
In cases where the at-fault driver has limited insurance, it’s more than likely that they may also lack the personal wealth or assets needed to cover a significant judgment.
A skilled attorney can help you investigate whether pursuing a lawsuit is a viable option by evaluating the defendant’s financial situation, including:
It’s essential to consider all options carefully before deciding whether to pursue legal action against an underinsured driver.
Consult an experienced personal injury attorney who can advise you on the best course of action based on your situation.
Collecting the awarded damages can be challenging even if you win a lawsuit.
The at-fault driver may file for bankruptcy, which can discharge their debt or make it difficult to recover the total amount.
Individuals with minimal assets may be judgment-proof, meaning there is little you can do to enforce the court’s decision.
It’s crucial to consider these potential challenges before choosing to pursue a lawsuit.
Navigating the car accident insurance claims process and pursuing a lawsuit can be complicated and overwhelming.
An experienced car accident lawyer can help you understand your legal rights, advise you on the best course of action for your situation, and advocate for your best interests to ensure fair compensation.
Auto accident claims that exceed insurance limits are often complex and require an in-depth understanding of insurance policies, state laws, and legal procedures.
A knowledgeable attorney can assess your case’s unique circumstances and advise you on the best course of action for recovering maximum compensation.
Car accident attorneys are skilled in the following:
Insurance companies often try to minimize payouts or deny valid claims.
A car accident attorney can negotiate with insurance adjusters to advocate for a fair settlement that covers all of your damages.
Many insurers dispute claims, particularly in cases involving UIM coverage or complex liability issues.
An experienced attorney can negotiate on your behalf and work to resolve disputes, ensuring you receive the compensation you deserve.
The attorney’s legal expertise and knowledge of insurance laws can be invaluable in achieving a satisfactory outcome.
When a lawsuit is necessary, having experienced legal counsel is crucial.
A car accident attorney can represent your interests in court, handle all legal proceedings, and work tirelessly to recover compensation that exceeds the at-fault driver’s policy limits.
This professional will handle all aspects of the case, from gathering evidence and building a solid argument for presenting your case in court.
Reviewing and strengthening your insurance coverage is crucial to protect yourself and your assets in case of a car accident.
One of the best ways to safeguard yourself financially is by reviewing your current auto insurance policy.
Ensure you have adequate uninsured motorist (UM) and underinsured motorist (UIM) coverage to protect yourself if the at-fault driver lacks sufficient insurance.
Consider purchasing personal injury protection (PIP) coverage, which can help cover expenses like medical bills and lost wages in case of an accident.
An umbrella policy provides an extra layer of protection by covering liabilities that exceed the limits of your auto insurance policy.
These policies typically offer high coverage limits for relatively low premiums and can be valuable in ensuring your financial security.
Speak with your insurance agent to determine if an umbrella policy is a suitable option for you.
No one expects to be in a car accident, but it’s essential to prepare for the unexpected.
Consider setting up an emergency fund that can cover unexpected expenses like medical bills and lost income in case of an accident.
In addition, having legal representation and insurance coverage can help protect you financially and provide peace of mind if you are involved in a car accident with an underinsured driver.
If you’ve been involved in a car accident where the damages exceed the at-fault driver’s insurance limits, seek professional legal guidance immediately.
At TorHoerman Law, we have extensive experience handling complex car accident claims and can help you explore all possible avenues for compensation, from UIM claims to litigation.
We aim to hold liable parties responsible and ensure you receive the maximum compensation possible, even when insurance limits fall short.
Don’t face this challenging situation alone.
Contact us for a free consultation.
You can also use the chatbot on this page to find out if you qualify for a car accident lawsuit instantly.
Owner & Attorney - TorHoerman Law
Here, at TorHoerman Law, we’re committed to helping victims get the justice they deserve.
Since 2009, we have successfully collected over $4 Billion in verdicts and settlements on behalf of injured individuals.
Would you like our help?
TorHoerman Law represents people whose lives have been disrupted by serious injuries, unsafe products, and negligence. Our attorneys handle individual personal injury cases as well as national mass tort lawsuits involving major corporations.
Founded in 2009, our legal team brings more than 100 years of combined experience handling serious injury and complex civil litigation.
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In this case, we were able to successfully recover $4 Million for our client after they suffered a Traumatic Brain Injury while at daycare.
In this case, we were able to successfully recover $2.8 Million for our client after they suffered an injury due to a Defective Heart Device.
Here, at TorHoerman Law, we’re committed to helping victims get the justice they deserve.
Since 2009, we have successfully collected over $4 Billion in verdicts and settlements on behalf of injured individuals.
Would you like our help?
They helped my elderly uncle receive compensation for the loss of his wife who was administered a dangerous drug. He consulted with this firm because of my personal recommendation and was very pleased with the compassion, attention to detail and response he received. Definitely recommend this firm for their 5 star service.
When I wanted to join the Xarelto class action lawsuit, I chose TorrHoerman Law from a search of a dozen or so law firm websites. I was impressed with the clarity of the information they presented. I gave them a call, and was again impressed, this time with the quality of our interactions.
TorHoerman Law is an awesome firm to represent anyone that has been involved in a case that someone has stated that it's too difficult to win. The entire firm makes you feel like you’re part of the family, Tor, Eric, Jake, Kristie, Chad, Tyler, Kathy and Steven are the best at what they do.
TorHorman Law is awesome
I can’t say enough how grateful I was to have TorHoerman Law help with my case. Jacob Plattenberger is very knowledgeable and an amazing lawyer. Jillian Pileczka was so patient and kind, helping me with questions that would come up. Even making sure my special needs were taken care of for meetings.
TorHoerman Law fights for justice with their hardworking and dedicated staff. Not only do they help their clients achieve positive outcomes, but they are also generous and important pillars of the community with their outreach and local support. Thank you THL!
Hands down one of the greatest group of people I had the pleasure of dealing with!
A very kind and professional staff.
Very positive experience. Would recommend them to anyone.
A very respectful firm.