After a car accident, medical bills, lost income, and other expenses can add up quickly. If the at-fault driver’s insurance policy does not cover all of your losses, it is natural to worry about how to get the money you need to cover your bills and expenses. You may be able to seek additional compensation through your own insurance coverage or by filing a personal injury lawsuit against the at-fault driver.
However, these claims can involve strict deadlines, complicated insurance issues, and lengthy negotiations. An experienced car accident attorney at Shamieh Law can review your options and help you pursue the compensation available for your injuries and losses.
What Is an Insurance Policy Limit?
An insurance policy limit is the maximum amount an insurance company will pay for a covered claim under a particular insurance policy. For example, if a driver has a $50,000 bodily injury liability limit and causes an accident that results in $80,000 in covered damages, the driver’s insurance generally will not pay more than $50,000.
The remaining $30,000 may have to be recovered through other sources, and policy limits can apply to different types of coverage, including the following:
- Bodily injury liability: Pays for injuries the policyholder causes to someone else
- Property damage liability: Pays for damage the policyholder causes to another person’s property
- Per-person and per-accident limits: A policy may set one maximum amount for an individual claimant and another maximum for everyone injured in the accident
How Insurance Policy Limits Affect Car Accidents
How PIP Coverage Affects Your Claim
Your own insurance may also help cover expenses after a car accident. Personal Injury Protection (PIP) can help pay medical expenses and other eligible losses regardless of who caused the collision. Texas insurers must offer PIP coverage, but you can generally reject it if you do so in writing.
Waiting for an At-Fault Insurance Payment
Texas is an at-fault state, so the driver responsible for the crash is generally responsible for your covered damages. Insurance claims can take time to resolve. If you need medical care before receiving an insurance payment, your health insurance might help cover the cost of your treatment. When this happens, your healthcare insurance will most likely seek reimbursement if you receive a settlement or judgment against the at-fault party.
The 30/60/25 Policy: Texas Minimum Auto Insurance Liability Coverage
Many states require drivers to carry a minimum amount of auto insurance, and the required limits vary by state. In Texas, the minimum liability coverage is commonly referred to as a 30/60/25 policy. This is the bare minimum coverage required by law and includes:
- $30,000 for bodily injuries to one person
- $60,000 for bodily injuries to two or more people in one accident
- $25,000 for property damage in one accident
Drivers can choose to purchase more coverage than the legal minimum. For example, collision coverage can help pay to repair or replace your vehicle. Higher liability limits will provide more coverage if an accident causes damages that exceed the minimum limits.
What if the Driver Who Hit Me Was Uninsured?
If the driver who caused your accident does not have insurance, your own uninsured motorist coverage can help pay for medical expenses, lost income, and other covered losses. In some cases, you might also be able to pursue the at-fault driver personally.
Can You Pursue Damages That Exceed the Insurance Coverage?
A serious accident can leave you with medical bills, lost wages, and other damages that exceed the at-fault driver’s insurance limits. In some cases, you may be able to pursue the responsible party for damages beyond what insurance covers. Before filing a lawsuit, an attorney will consider a variety of factors, including:
Did Other Parties Contribute to the Accident?
Does the At-Fault Party Have Umbrella Insurance?
An umbrella policy can provide additional liability coverage above the limits of an auto or homeowners policy. If applicable, the underlying auto policy generally pays first, and umbrella coverage could apply after those limits are exhausted.
Does the At-Fault Party Have Assets?
Winning a judgment does not necessarily mean you will collect the full amount. Some property is protected from creditors under Texas law, and a person with few or no reachable assets may be considered “judgment proof.”
Texas judgments generally become dormant after 10 years unless properly renewed through execution. A dormant judgment can be revived after it becomes dormant, but it has to be revived within two years. Otherwise, your judgment will expire.
Suing for damages outside of an insurance policy can be tricky. Consult an experienced attorney who understands Texas law to learn how to best pursue compensation.
At Shamieh Law, We’re Not Afraid of a Trial if It’s Best for You
Most car accident claims are resolved through settlement negotiations without ever having to go to trial. But when a fair resolution cannot be reached, you need a legal team that is prepared to take your case to court.
At Shamieh Law, our attorneys have litigation experience and are prepared to advocate for you at trial whenever it becomes necessary. If you are unsure what to do after a car accident, especially when you or a loved one has suffered serious injuries, having a team that is ready to litigate can make a difference.
How Underinsured and Uninsured Motorists Affect Your Car Accident Claim’s Value
If you have uninsured and underinsured motorist coverage, or UM/UIM, you might be eligible to file a claim under your own coverage to collect compensation for your crash. Texas does not require you to purchase this insurance. However, insurance companies must offer it, and you receive the coverage unless you opt out in writing.
How UM/UIM Coverage Impacts Your Case
If someone hits your car and they do not have insurance, or if you were involved in a hit-and-run accident, you can file a claim under your UM coverage. If the at-fault driver’s insurance coverage is not enough to cover your damages, you can file a claim under your UIM coverage. When choosing your own insurance coverage, it is often tempting to skip UM/UIM coverage, but it can be vital in scenarios where you don’t have other options to cover your losses.
What Is the Texas Stowers Doctrine?
If an insurer fails to pay reasonable compensation in your personal injury case, the Stowers Doctrine is a legal principle that allows personal injury lawyers to make a demand for a settlement. This Texas law is intended to protect the insured if an insurer fails to accept a reasonable settlement offer within the policy limits. Under the Stowers Doctrine, the insurer has a duty to accept a reasonable settlement demand within the policy limits when doing so would protect its insured from the risk of an excess judgment.
What Are the Requirements for a Valid Stowers Demand?
- Involve a covered claim
- Stay within the policy limits
- Provide the insurer a reasonable opportunity to negotiate a settlement
How Does the Stowers Doctrine Apply in a Car Accident Case?
Your attorney can make a Stowers demand to settle your case for the $30,000 policy limit, as long as the requirements for a Stowers demand are met. If the insurer unreasonably refuses a qualifying demand and the case later results in a judgment against the insured that exceeds the policy limits, the insurer could be held responsible for the excess judgment under the Stowers Doctrine.
We Can Answer Your Questions About Insurance Policy Limits After a Crash
Our experienced legal team will negotiate with the insurance companies involved and advocate for your right to recover the damages you deserve. We will collect the necessary evidence, assess your damages, and fight to get you a fair recovery for your auto accident injuries, even if that means taking the time to explore multiple sources.
For a free case review with an experienced attorney, contact us today by completing our online form or by calling 469-813-7332.