When your accident claim exceeds the at-fault driver’s insurance policy limits, you may have several options, including pursuing the driver’s personal assets, using your own underinsured motorist coverage, or identifying other parties who may share responsibility for the crash. The best approach depends on the extent of your losses, the available insurance policies, the evidence of fault, and the driver’s financial circumstances. Exceeding the policy limit does not automatically mean you must absorb every remaining expense.
Boulder, Colorado, is a growing city at the base of the Rocky Mountains, where residents and visitors travel on local streets, regional highways, and roads connecting nearby communities. Traffic collisions in the area can result in medical bills, lost income, and long-term rehabilitation costs that exceed the insurance available from one driver.
A car accident lawyer in Boulder can help evaluate available coverage, identify potential sources of compensation, and explain the legal options for pursuing damages beyond an initial insurance offer.
Understand the At-Fault Driver’s Policy Limits
Auto insurance policies typically set maximum amounts an insurer will pay for covered claims. A policy may have separate limits for bodily injury to one person, bodily injuries in one accident, and property damage.
For example, suppose your documented losses total $150,000, but the at-fault driver’s applicable bodily injury limit is $100,000 per person. Even if the insurer accepts responsibility, it generally will not pay beyond the applicable policy limit unless another legal or contractual basis applies.
Ask the insurer to confirm the relevant limits and whether other coverage may be available. Do not assume the first offer represents all insurance resources connected to the collision. Multiple policies or additional liable parties may change the amount potentially recoverable.
Check Your Underinsured Motorist Coverage
Your own auto insurance may provide an important option if the at-fault driver’s coverage is insufficient. Underinsured motorist, or UIM, coverage is designed to help eligible policyholders recover certain losses when the responsible driver’s insurance does not provide enough compensation.
Coverage terms vary, and the amount available may depend on your policy limits, the other driver’s coverage, and applicable state law. Some policies require the insurer’s consent before you settle with the at-fault driver or release that driver from liability.
Before accepting a settlement, review your policy and speak with your insurer about any notice, approval, or documentation requirements. Settling without following the required procedures could affect your ability to pursue UIM benefits.
Consider Whether Other Parties May Be Liable
Sometimes the at-fault driver is not the only party whose conduct contributed to an accident. Depending on the facts, another driver, an employer, a vehicle owner, or a business responsible for vehicle maintenance may potentially share liability.
For example, if a driver was performing job duties when the crash occurred, questions may arise about whether an employer’s insurance applies. A defective vehicle component or unsafe road condition may also warrant further investigation in appropriate cases.
Liability is fact-specific. Police reports, witness statements, photographs, vehicle data, and expert analysis may help determine whether another party contributed to the collision and whether additional insurance is available.
Pursue the Driver Personally When Appropriate
If insurance coverage is insufficient, you may be able to pursue a claim against the at-fault driver personally for recoverable damages beyond the policy limit. However, obtaining a judgment does not guarantee payment.
A driver’s income, property, existing debts, and other financial circumstances can affect whether a judgment is collectible. Legal restrictions may also protect certain assets from collection. Before pursuing litigation, consider the likely costs, time involved, and realistic prospects of recovery.
A lawyer can help assess whether a personal claim makes practical sense and explain the available procedures.
Document Your Losses and Protect Important Deadlines
Keep medical records, bills, repair estimates, wage statements, and documentation of other accident-related expenses. If your injuries may require future treatment, medical opinions about anticipated care can help explain the potential long-term impact.
Colorado law generally provides a three-year limitation period for many civil actions involving injuries from motor vehicle accidents under Colorado Revised Statutes § 13-80-101(1)(n), although exceptions and other rules may apply. Other types of claims can have different deadlines.
Avoid accepting a settlement before understanding the full extent of your losses and the effect of any release. Promptly reviewing your legal options can help preserve potential sources of compensation.
Key Takeaways
- Confirm the at-fault driver’s actual policy limits and available coverage.
- Review your own underinsured motorist policy.
- Investigate whether additional parties or insurance policies may apply.
- Consider a personal claim against the driver only after assessing collectability.
- Keep detailed records and check all applicable deadlines before settling.
