What Happens When a Car Accident Exceeds Insurance Limits?

Here is how policy limits work in Louisiana: the state requires a minimum amount of auto insurance coverage, which covers medical expenses, lost income, property damage, and any related damages. The coverage limits are the maximum amount of money that an insurance provider is required to pay for various damages.
If the auto insurance’s liability limits aren’t enough to cover an injured party’s expenses, the victim can file a claim against their own underinsured motorist coverage for additional reimbursement, or they can pursue legal action against the at-fault driver or other involved parties (such as a truck driver’s employer, for example).

It is common for the value of someone’s auto accident case to exceed applicable insurance policy limits. This is because many drivers in Louisiana have car insurance policies with only the minimal required 15/30/25 liability limits
An auto insurance policy that affords more protection might have a liability coverage limit of 100/300/100, which means $100,000 per person, $300,000 per accident in bodily injury liability and $100,000 per accident for property damage liability. It’s ideal for drivers to have full protection in their auto insurance policies, but this is not often the case. Premium protection auto insurance generally includes coverage limits of 250/500, meaning the driver is covered for bodily injury liability up to $250,000 per person and $500,000 per accident. If a car accident settlement exceeds the policy limits—whether those limits are quite high or unfortunately low—you should already be working with a personal injury attorney to decide on what steps to take to pursue full compensation for your damages.

If the at-fault driver is uninsured or does not have enough coverage to pay for all your losses, you will file a claim with your insurance company. If you have purchased uninsured or underinsured motorist coverage, that coverage will step in to reimburse you for your damage and losses in this situation. This is why it’s so important to have uninsured motorist coverage on your policy!

According to a 2019 report by the Insurance Information Institute (III), roughly 12% of drivers in Louisiana are uninsured. That means over 1 in 10 drivers with whom you’re sharing the road are uninsured. For this reason alone, we highly recommend you purchase uninsured motorist coverage with your policy. The question of what policy limits are enough is one that is best answered by discussing your options with insurance agents at different insurance companies.
You’ll want to shop around to select the best option for your budget and lifestyle. An insurance policy with limits on the low end might be all you can afford, but if you can afford a premium policy with high limits, you should take that route to protect your assets. Our advice? We recommend purchasing the highest levels of liability coverage that you can afford, along with collision, comprehensive, and uninsured motorist coverage.

There really is no specific answer for this question. People have successfully sued for car accident injuries and losses that range anywhere from a few thousand dollars to over $1,000,000.00. The amount of reimbursement you seek as an injured party in an auto accident depends on the extent of damages, which should take into account medical bills, loss of wages, and all past and future pain and suffering.
A personal injury attorney’s is to help car accident victims understand the full extent of their injuries or losses and file a claim or lawsuit that seeks appropriate reimbursement. It’s very important to work with a reputable lawyer who will guide you through the process using their expertise, knowledge, and insight.

Yes, you can file a lawsuit against the person who caused your injuries if their policy limits and your own uninsured motorist coverage cannot fully reimburse you for the cost of your damages. You would want to pursue a lawsuit only after consulting with a personal injury attorney and first attempting to be reimbursed through a claim.
A lawyer will then help you file the lawsuit, which can be complicated and stressful. No one really wants the hassle of going to court. A good lawyer will help settle the case before it must go to the court system.
At Breaux Law Firm, for example, we will listen to the details of your accident, explore your claim, investigate the accident and who was at fault, meticulously document all past and future pain and suffering, speak to witnesses, gather evidence, prepare and file a claim and/or lawsuit to compensate you for your damages, and do all of the above within the required one-year time frame for Louisiana’s statute of limitations.

For the at-fault driver, auto insurance rates will likely go up. But for the victim, it is unlikely that your car insurance rates will increase.
Auto insurance policies can be tricky to navigate, much less filing a claim, understanding the other party’s policy limits (and your own policy limits), or filing a lawsuit.
We don’t recommend doing any of the above while also recovering from a car accident! You’ll want to get your life back to normal and fully heal from your injuries. Leave the difficult auto insurance stuff to the experts.