When the value of your car accident claim exceeds insurance limits, it means your losses are greater than the amount an insurance policy has coverage to pay. In Kentucky, this may leave you responsible for uncovered medical bills or other damages unless another source of recovery is available, like underinsured motorist insurance coverage or collecting damages directly from the at-fault driver.
Speaking with a Louisville personal injury attorney can help you understand which options may apply in your situation.
What are insurance policy limits in a Kentucky car accident claim?
Insurance policy limits are the maximum amounts an insurance company will pay after a car accident. In Kentucky, state law requires drivers to carry minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury, along with $25,000 for property damage.
These limits can be quickly exhausted in serious crashes involving hospital care or significant vehicle damage. When losses exceed the policy limits, the insurance company is not required to pay more, even if your total damages are much higher.
Can I sue the at-fault driver if insurance does not cover all my losses?
In some situations, yes. Kentucky law allows injured drivers to pursue a claim against the at-fault driver when their losses exceed available insurance coverage. This typically applies when injuries are serious, like traumatic brain injuries, and the cost of medical care or time away from work goes beyond what no-fault benefits or liability insurance will pay.
However, there are reasons why such a claim may not be beneficial. For example, many people do not have sufficient assets to pay a judgment and bankruptcy laws protect certain assets from a judgment. Whether this option makes sense depends on the severity of your injuries, the amount of insurance available, and whether the driver has assets that could satisfy a judgment.
How does uninsured or underinsured motorist coverage apply when insurance limits are too low?
When the at-fault driver’s insurance is not enough to fully cover your losses, your own uninsured or underinsured motorist coverage can help fill the gap. This is insurance that you pay for to protect you in this difficult situation.
Uninsured and underinsured motorist coverage can help pay for all the same categories of damages of bodily injury coverage – medical expenses, lost wages, as well as pain and suffering. But coverage amounts vary by policy, and recovery is still subject to those limits. Reviewing all available insurance policies is one of the most important steps in determining what compensation may realistically be available.
What should I do if my car accident claim exceeds insurance limits in Kentucky?
If your car accident claim exceeds insurance limits, having clear guidance from a car accident lawyer can make a meaningful difference. The attorneys at Grossman Green help injured people across Kentucky evaluate insurance coverage and understand their options after a serious crash. To learn more about your options, contact us online to schedule a free consultation or call our office at (502) 657-7100.