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What to Do When Car Accident Claims Exceed Insurance Policy Limits?

Car accidents are stressful events, and when the resulting damages exceed your insurance policy limits, it can be even more overwhelming. In this blog, we’ll discuss what to do when car accident claims exceed your insurance policy limits and how you can protect yourself financially.

What Happens If You Cause More Damage than Your Insurance Covers?

You could be held personally responsible for the remaining costs if you’re at fault in a car accident and the damages exceed your insurance policy limits. This means that you may have to pay out of pocket for medical bills, vehicle repairs, and other expenses incurred by the other party involved in the accident.

Who Pays for Damage That Exceeds the Policy Limits?

You may be on the hook for the remaining costs when car accident claims exceed your insurance policy limits. This could include paying for property damage, medical expenses, lost wages, and even legal fees if the other party decides to sue you for damages.

How Do I Protect My Assets After a Car Accident?

It’s essential to have adequate insurance coverage in place to protect your assets after a car accident. In addition to your state’s minimum liability requirements, consider purchasing additional coverage options such as umbrella insurance. Umbrella insurance provides extra liability protection beyond the limits of your auto insurance policy, helping safeguard your assets in the event of a major accident.

How Can Collision and Uninsured Motorist Coverage Help If You’re Not at Fault?

Even if you’re not at fault in a car accident, your insurance policy limits could still be exceeded if the other party involved doesn’t have sufficient coverage. In such cases, collision coverage and uninsured/underinsured motorist coverage can help bridge the gap.

  • Collision Coverage: Collision coverage helps pay for repairs to your vehicle, regardless of who is at fault in the accident. If the other party’s insurance isn’t enough to cover the damages, your collision coverage can step in to cover the rest up to your policy limits.
  • Uninsured/Underinsured Motorist Coverage: This coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover your damages. It can help pay for medical expenses, lost wages, and other costs associated with the accident.

Get Adequate Insurance Coverage for a Car Accident Claim with McCarty Insurance Agency

Ensuring you have adequate insurance coverage is crucial for financially protecting yourself in a car accident. If you have questions about your current coverage or are interested in exploring additional options, contact us at McCarty Insurance Agency today. Our experienced agents can help you find the right insurance solutions to meet your needs. Call us at (559) 324-1421 to schedule a consultation with our experienced agents.

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