Accident victims can easily become overwhelmed with medical bills and other expenses after a car accident. Sometimes, their damages exceed the insurance policy limits of the party responsible for the crash. Victims are left to wonder if they can sue someone for more than their insurance policy.
There are several ways to collect damages beyond the other party’s insurance limits. You can turn to your own insurance or, sometimes, file a personal injury lawsuit against the at-fault driver. These claims are often complex and involve strict time limits and prolonged negotiations. To pursue the fair compensation you deserve, partner with a compassionate, skilled car accident attorney from Shamieh Law so we can put our decades of combined experience to work for you.
How Insurance Policy Limits Affect Car Accident Cases
Every insurance policy has a payout limit based on the level of coverage the policyholder chose. The policy limit of the other party in a car accident affects how much you can collect against that policy for your damages. For instance, if the driver’s insurance plan covers up to $30,000 in damages, that’s the maximum the insurance company will cover based on that policy. If you have $50,000 in damages, an experienced lawyer can help you find ways to cover the remaining $20,000.
Your insurance policy limits also affect your car accident case, for example, when determining who pays your medical bills. The other party’s liability insurance pays first, but you may also be able to turn to your Personal Injury Protection, or PIP coverage. PIP is included in all Texas car insurance policies, though you can opt out in writing.
Texas is an at-fault insurance state, and you may have to wait for payment from the liable party’s insurance company. You also might need to turn to your health insurance to cover your car accident injuries if you need medical attention. Your health insurance company may then choose to recoup their losses from your insurance payment or a lawsuit judgment.
The 30/60/25 Policy: Texas Minimum Liability Limit
Many states impose mandatory insurance limits. Those limits vary by state. The Texas minimum car insurance requirements include what is commonly called a 30/60/25 policy. Each driver must carry coverage including:
- $30,000 for the bodily injuries of any injured third party
- $60,000 for the bodily injuries of all injuries third parties
- $25,000 for all relevant property damage
Drivers also can carry optional insurance coverage. For example, collision coverage pays to repair or replace your car. Another option is to pay higher premiums for higher limits than dictated under state law.
Can You Pursue Damages That Exceed the Insurance Coverage?
In a serious accident, you may have medical bills, lost wages, and other expenses exceeding the other driver’s insurance coverage. However, you can sue the liable party or parties for damages above those covered by insurance. Some factors to consider before choosing a personal injury lawsuit include:
- Did other parties contribute to the accident? If multiple parties were responsible for your accident, you might be able to collect from each of them. For example, if you are in a crash with a speeding driver with defective brakes, you may have a case against the other driver and the car manufacturer.
- Does the at-fault party have umbrella insurance? An umbrella policy has higher coverage limits than most auto and home insurance policies. People choose them to avoid being personally liable for extensive damages when they are at fault. For a serious car accident, the auto policy pays first until it is exhausted, and then the umbrella policy kicks in.
- Does the person have assets? To collect in a lawsuit, the other party must have money or assets you can recover. Some assets are exempt from judgment collection, such as a family home and other specific personal holdings. The other party may be “judgment proof,” meaning they lack any non-exempt assets you can collect. However, in Texas, judgments are valid for 10 years before becoming dormant. An experienced attorney can file for a revival of judgment up to two years after your initial judgment is dormant so you can recover new assets.
Suing for damages outside an insurance policy can be tricky. Consult an experienced car accident attorney who understands Texas law to learn how to best pursue compensation.
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.
UM coverage pays out if someone hits your car and they don’t have insurance or if you were involved in a hit-and-run. UIM pays out if the liable party’s insurance coverage isn’t enough to cover your damages. It may be tempting to skip this coverage, but it can be vital in scenarios where you may have few other options to cover your losses.
If you have an accident with an uninsured or an underinsured motorist and must turn to your UM/UIM coverage, consider hiring a skilled Texas car accident attorney. You may face pushback from your insurance company regarding liability and damages. An accomplished attorney can collect evidence and make a compelling case for why you deserve compensation.
You can sue an uninsured driver in Texas, but they often don’t have insurance because they can’t afford the premiums. An accomplished attorney can advise you of your options. They can also assist you in filing a lawsuit if the other driver’s liability and your UIM coverage combined aren’t enough to cover your damages.
What Is the Texas Stowers Doctrine?
Under the Stowers Doctrine, a liability insurer that undertakes the defense of an insured must act in good faith in settling a claim. If the insurer refuses to deal in good faith, an experienced attorney can send a so-called Stowers demand to a third-party insurance company. Lawyers make this demand in cases where it is reasonably clear that the person the insurance company covers is liable and in an amount up to the coverage limits.
If the insurance company does not pay, and it is very clear that a reasonable insurance company would have in similar circumstances, it may be liable for more than the coverage limit.
Suppose you were in an accident with a reckless driver and clearly held no fault in the crash. You have $50,000 in damages, and the driver’s insurance policy has a $30,000 limit. Your attorney can send a Stowers demand to that driver’s insurance company, asking for the policy limit of $30,000. If that company does not pay you this reasonable amount, you can file a lawsuit, and it can be found liable for the additional $20,000.
Contact Our Car Accident Lawyers Today
You can sue someone for more than their insurance policy, but these cases can be complex. You need an experienced lawyer to walk you through the insurance and legal processes and provide you with skilled representation. We will collect evidence, calculate your damages, and fight to get you a fair recovery for your auto accident injuries, even if that means taking the time to turn toward multiple sources.
For a free case review with an experienced Texas car accident attorney, contact Shamieh Law today by calling 469-813-7332 or completing our online contact form.
