What Happens When a Car Accident Claim Exceeds Insurance Limits?

There can be insurance limits when you file a car accident claim for injuries and damages in Miami, Florida. These limits can vary based on the type of coverage you have, as well as the coverage of the at-fault driver. When your insurance claim exceeds insurance limits, you have specific legal remedies you can pursue with help from a car accident attorney in Miami.

Florida’s Auto Insurance Requirements

Florida law requires drivers to carry a minimum of $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability (PDL). However, Florida does not mandate Bodily Injury Liability (BIL) coverage, which often leaves injured persons struggling when a car accident claim exceeds insurance limits. PIP covers 80% of medical bills and 60% of lost wages, but severe injuries can quickly surpass these limits, leaving the injured person to seek additional compensation through lawsuits or other coverage options.

What Are My Options if My Car Accident Claim Exceeds the At-Fault Driver’s Insurance Limits?

You have a few different options when your car accident claim exceeds the at-fault driver’s insurance limits. Initially, you will file your claim with your own insurance provider because Florida is a no-fault state. Once you reach your insurance limits, then you can sue the at-fault driver for the difference.

Should you also exceed their insurance limits, some of the additional legal options for car accident victims include:

Seeking further compensation through underinsured motorist coverage through your policy
Suing the at-fault driver in civil court
Filing against your health insurance

Understanding Policy Limits in Florida Car Accident Claims

Policy limits define the maximum compensation an insurance company will pay. If damages exceed these limits, the at-fault driver becomes personally responsible for the remaining damages. This can lead to wage garnishment, property liens, or asset seizure. Determining the at-fault driver’s insurance coverage is crucial, but insurers often refuse to disclose policy limits unless compelled by Florida law or litigation.

Can I Sue the At-Fault Driver for the Remaining Amount Beyond Their Insurance Coverage?

You can sue the at-fault driver for the remaining compensation you are due when it exceeds their insurance coverage. However, you may need to first file a lawsuit against your own insurance company if you have underinsured motorist coverage.

How Does Underinsured Motorist Coverage Work in Florida?

Underinsurance motorist coverage (UIM) in Florida is optional coverage you can add to your policy. After exceeding all available coverages, including the at-fault driver’s coverage, you can claim the difference against UIM.

Potential Sources of Additional Compensation

When an accident claim exceeds insurance, you may explore other potential sources of recovery:

Uninsured motorist claim under your own policy
Health insurance coverage for medical costs
Claims against other parties (e.g., vehicle manufacturers, bars that overserved alcohol)
Negotiating a structured payment plan with the negligent driver to recover maximum compensation without lengthy litigation

What Steps Should I Take If My Medical Bills Exceed the Insurance Payout?

Suppose your medical bills exceed the insurance payout limits and settlement. You have exhausted all insurance coverages on your and the at-fault party’s insurance policies. Then, you will need to sue the defendant in civil court for the excess claim recovery difference. If you have already hired a personal injury lawyer in Miami, chances are they have already filed the lawsuit on your behalf.

Bad Faith Claims Against Insurance Companies

If an insurance company had the opportunity to settle within policy limits but failed to act reasonably, you may file a bad faith claim. Under Florida law, this allows you to recover the full amount of damages, even if the accident claim exceeds insurance limits because the insurer acted improperly in protecting its policyholder.

Are There Limits to How Much I Can Recover in a Car Accident Claim in Florida?

Florida’s car accident laws do not limit the amount of economic and non-economic damages you can claim. Economic and non-economic damages include:

Medical bills
Rehabilitation costs
Present and future lost wages
Present and future lost benefits
Funeral expenses in wrongful death cases
Pain and suffering
Loss of consortium
Disfigurement
Loss of a limb
Loss of eyesight

However, while there are no caps, you may be limited by the coverage limits and whether the at-fault party has substantial assets worth pursuing by suing them in civil court.

Risks to the At-Fault Driver’s Personal Assets

When a car accident claim exceeds insurance limits, the at-fault driver’s personal assets may be targeted. Plaintiffs can sue to garnish wages, place liens on property or seize assets to cover remaining damages. Florida’s low minimum liability limits make this a common scenario, especially in severe personal injury cases.

Can My Personal Assets Be at Risk if My Insurance Coverage Is Not Enough?

Your personal assets can be at risk if you lack sufficient insurance coverage in Florida, especially when an insurance claim is made against you after a car accident. You should increase your insurance limits if you have substantial assets and want to protect them. This is especially true if you drive a leased vehicle, where specialized guidance from attorneys for leased car accidents in Florida can help ensure you have the right coverage.

Mainly, you will want to carry a higher amount of personal insurance and liability coverage in case you have to pay for someone else’s injuries.

What Is the Process for Filing a Lawsuit To Recover Damages Beyond Insurance Limits?

Filing a lawsuit to recover damages beyond insurance limits begins with filing against your insurance. You must first exhaust all of your insurance before you can file against the at-fault party’s insurance. Florida Statute 627.737 allows you to file against the at-fault party’s insurance when there are severe injuries, disfigurement, injuries that affect your quality of life, and accidental death. An overview of the steps you would need to take include:

Open a claim with your insurance company: You will need to report the accident to your insurance company and open a claim. Provide them with the police report number and only the facts to get the process started.
Consult with a car accident lawyer in Miami: After opening your claim with your insurance company, you should arrange a free consultation with a Miami car accident attorney. They will provide free legal advice and a valuation of how much compensation you could be entitled to receive. It is also beneficial to hire a lawyer early on so they can start legal processes to sue the at-fault party.
Your lawyer files a lawsuit in court: Your lawyer will prepare the necessary paperwork and supporting documentation needed to sue the at-fault driver. Once filed with the court, the at-fault driver will be served. They have a set period for filing a response.
Discovery and negotiations: Before going to trial, it is common to go through discovery procedures and begin settlement negotiations.
Reach a settlement: Most car accident injury lawsuits will be settled out of court. The Miami car accident settlement amount should be reasonable and comparable to the extent of your injuries and losses.
Go to trial: If a settlement cannot be reached, your attorney will litigate the case in court.

How Does Florida’s No-Fault Insurance Laws Impact My Ability To Recover Damages?

Florida’s no-fault insurance laws determine how damages are paid and in what order. For example, the mandatory state insurance coverage limits required are a minimum of $10,000 in PIP. PIP will pay up to 80% of your medical expenses and up to 60% of your lost wages.

Since you will be left owing money on your medical bills and a difference in lost wages, you will need to sue the at-fault driver and their insurance company to recover all the compensation you are entitled to receive fully. The at-fault driver’s insurance company will only pay out damages up to their coverage limits.

If the defendant does not have sufficient assets worth pursuing, and you have UIM coverage, you then file a claim against that to recover more damages. In less severe crashes where injuries are minimal or absent, understanding the average settlement for non-injury car accidents in Miami can help set realistic expectations. Basically, Florida’s no-fault insurance laws impact the processes of how you recover damages and could potentially limit the amount you receive, even though there are no caps.

What Role Does an Attorney Play in Cases Where Claims Exceed Insurance Limits?

A Miami car accident attorney provides you with the legal representation you need to ensure you receive fair compensation for your injuries and losses. In cases where claims exceed insurance limits, they will determine if any additional sources could be used to recover your damages, including:

Whether the defendant has substantial assets
Helping you decide if suing the other party would be beneficial, even when they do not have sufficient assets presently
Whether any other parties could be sued, like if the driver was driving a commercial vehicle
Assisting you in filing against your health insurance once you have exhausted all other options

If you have been in a hit-and-run or motorcycle accident, you should consult a Miami hit-and-run attorney or a Miami motorcycle accident attorney since recovering damages in these cases can be even more complex.

Are There Any Time Limits for Filing a Claim or Lawsuit After a Car Accident in Florida?

Florida Statute 95.11(4) sets the statute of limitations for filing a claim or lawsuit for car accident injuries and losses to two years from the date of the accident. However, you only have 14 days from the date of the accident to seek medical treatment for your injuries. If you do not seek treatment within this time, your injury claim could be limited or even denied.

What Resources Are Available for Low-Income Individuals Seeking Legal Help?

When low-income individuals are injured in a car accident, they may think they are limited to what they can claim against their insurance policy. What they may not know is that they can seek legal help with a free case evaluation and consultation through a qualified car accident lawyer in Miami.

Additionally, they do not have to worry about any out-of-pocket legal fees upfront. Most personal injury lawyers in Miami work on a contingency basis, which means an agreed-upon percentage is deducted from the settlement to pay legal fees at the end of the case. If the lawyer is unable to reach a settlement or win the case at trial, nothing is owed.

Get the Car Accident Settlement in Miami You Deserve With Help From Bernstein & Maryanoff Injury Attorneys

You do not have to worry about navigating Florida’s no-fault system alone after being injured in a car accident when you get help from Bernstein & Maryanoff Injury Attorneys. Our Miami car accident attorneys will handle reaching a settlement with your insurance company, suing the other party and their insurance company, and reaching a settlement with them to ensure you are fully compensated for all your damages and losses. We can even pursue suing the defendant when your losses exceed insurance limits. Contact us now for your free consultation.

Frequently Asked Questions (FAQs)

Insurance providers often do not disclose policy limits to anyone other than the policyholder. Your attorney can file a demand letter or pursue discovery in a personal injury lawsuit to uncover the at-fault driver’s insurance coverage. Knowing these limits helps guide your strategy for seeking additional compensation.

If the at-fault driver was also injured in the accident scene, their claim may reduce the amount available from their insurance coverage. This can further limit recovery for the injured person, making underinsured motorist coverage or other potential sources of compensation even more critical.

Yes. If your car accident claim exceeds insurance limits, you may negotiate a structured payment plan with the negligent driver. This allows you to recover damages without lengthy litigation, though your attorney should oversee negotiations to ensure fairness and enforceability.

Florida requires only $10,000 in Property Damage Liability (PDL). If damages exceed this coverage, the at-fault driver is personally responsible for the excess. Plaintiffs may pursue lawsuits, liens, or wage garnishment to recover remaining damages.