car insurance limit

What Happens When Car Accident Claim Exceeds Insurance Limits


When a car accident claim exceeds the insurance limits, the driver may be held liable for the damages. If the driver is found liable, they may be required to pay the damages out of their own pocket. This can be a costly mistake, especially if the driver is not wealthy. In some cases, the driver may be forced to file for bankruptcy.

This is a question that often leaves drivers and passengers wondering what will happen if they are in an accident and their damages exceed their policy limit.

In most cases, when an accident exceeds the insurance limit, the driver or passenger is left to cover the remaining costs themselves. This can often lead to financial hardship, especially if there are extensive damages.

When Car Accident Claim Exceeds Insurance Limits

  • When a car accident occurs, the victim may be entitled to compensation for their injuries.
  • The amount of compensation that the victim receives may be limited by the insurance policy of the at-fault driver.
  • In some cases, the victim’s injuries may be so severe that they exceed the insurance limits of the at-fault driver.
  • When this happens, the victim may need to file a lawsuit in order to receive additional compensation.
  • Filing a lawsuit can be a complex and time-consuming process, and it is important to have an experienced attorney by your side.

What Are Insurance Limits And Why Are They Important?

Insurance limits are the maximum amount an insurance company will pay for a particular type of claim. Limits are important because they help protect the insurer from being financially responsible for too much damage in the event of a major accident or disaster. Limits also help ensure that all policyholders share the risk of potential losses equally. Insurance companies typically set limits for each type of coverage, such as property damage, personal injury, and medical expenses.

Without limits, an insurance company could be liable for unlimited damages in the event of a covered loss. Limits also help to keep premiums affordable by preventing insurance companies from having to pay out large sums of money in claims.

Types of Insurance Limits

What Happens When Car Accident Claim Exceeds Insurance Limits

There are many types of insurance limits, but the most common are: single limit, split limit, and aggregate limit. The type of limit you have will depend on the type of policy you have and the state you live in. Some states only allow for a certain type of limit, while others allow for all three.

Understanding the different types of insurance limits is the first step in choosing the right limit for your needs.

The most common type of insurance limit is the per-occurrence limit. This limit applies to a single incident, and covers all damages associated with that incident.

What Are The Consequences Of Exceeding Your Limit And How Can You Avoid It?

Most people know that there are consequences for exceeding your limit. But what are they? And how can you avoid them? Here is a list of some of the consequences of exceeding your limit:

1) You will likely have to pay a fee.

2) You may be denied future credit.

3) Your credit score may drop.

4) You may have to pay interest on your balance.

5) You may have to pay late fees.

What Are Some Ways To Get More Coverage Than Your Insurance Limit?

As an individual, you likely have car insurance to protect yourself and your property in the event of an unexpected occurrence. But what happens if that accident or incident exceeds the coverage limit on your policy? You could be left footing the bill for the remainder of the damages. Fortunately, there are a few ways to get more coverage than your insurance limit to help protect yourself from such a situation.

Final Thought

When an accident claim exceeds the insurance limits, there are several possible outcomes. The driver may have to pay out of pocket for the damages, the driver’s insurance company may sue the other driver, or a settlement may be reached. It is important to speak with an attorney if you are in this situation to learn about your options and protect your rights.

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