What happens if medical bills exceed policy limits in a car accident? If insurance does not cover all your damages, you may wish to use your underinsured/uninsured motorist coverage or file a car accident lawsuit against the at-fault driver.
If you are in this situation after a car crash, a North Charleston car accident lawyer can get your questions answered and help you understand your legal options.
Required Insurance Coverage in South Carolina
In South Carolina, all drivers legally must have automobile insurance coverage to drive in the state. This requirement ensures that anyone behind the wheel is financially responsible for the damages or injuries they may cause in an accident. While there is a variety of packages and types of insurance you may choose from, drivers must have the following at a minimum coverage:
- Bodily Injury Insurance: This coverage protects you financially if you injure someone else in an accident. Minimum coverage: $25,000 per person / $50,000 per accident.
- Property Damage Insurance: Pays for any damage you cause to vehicles or other property. The minimum coverage is $25,000 per accident.
- Uninsured Motorist Coverage: Protects you and any other vehicle occupants in a crash with an uninsured or underinsured driver. Minimum coverage: $25,000 per person / $50,000 per accident for physical injury / $25,000 per accident for damaged property.
Drivers need to have proof of insurance within reach while driving in South Carolina, as law enforcement officers may issue tickets, resulting in fines and license suspension if you do not have it. While the minimum coverage levels are legally required, they may not be sufficient to cover all potential costs associated with a serious accident. Consider increasing your coverage limits so your car accident claim will not exceed insurance limits.
How Insurance Policy Limits Work
An insurance policy limit represents the maximum amount that a car insurance company will pay out for any single claim. These limits are typically divided into two main coverage types: bodily injury and damage to property. South Carolina’s minimum liability insurance coverage may not be sufficient to cover all potential costs associated with serious injuries.
Once the insurance company has paid out its policy limits, it is no longer obligated to cover any further expenses related to the accident. This can leave you financially responsible for any remaining costs, including unpaid medical bills, lost wages, and extensive car repairs. In some cases, you may file a lawsuit against the at-fault driver to recover damages exceeding their insurance policy limits.
Dealing with Underinsured or Uninsured Motorists
Accidents involving underinsured or uninsured drivers can leave you facing significant financial hardship. If the at-fault driver does not have enough insurance coverage or carries no insurance at all, your own underinsured/uninsured motorist (UIM) coverage can help. Underinsured motorist coverage has its own limits, separate from your standard liability coverage.
To use your UIM coverage, you will first file your car accident claim with either your own liability insurance (in cases of uninsured drivers) or the at-fault driver’s insurance (in cases of underinsured drivers). Then, anything that is not covered you can file with your UIM coverage. Not all states require this type of insurance coverage, but in South Carolina, there is a minimum UIM every driver must have.
If the at-fault party does not have car insurance, you may also wish to consider filing a lawsuit against them. Driving without active car insurance is illegal, so the law is on your side. A lawsuit may also help you with compensation for non-economic damages, which are not covered by liability insurance.
When to File a Car Accident Lawsuit
Not all car accidents warrant a lawsuit. However, some situations may make it beneficial, such as when a car accident claim exceeds the insurance policy limits. If the other driver denies fault or if insurance denies your claim, a lawsuit may be necessary to determine liability and obtain fair compensation.
Also, in cases involving significant pain and suffering, a lawsuit may be necessary to obtain compensation for non-economic damages such as emotional distress, loss of enjoyment of life, and other intangible damages that are not covered by insurance. To file a lawsuit, you will need to demonstrate negligence and that damages exceeded policy limits.
This means calculating and proving that your financial losses, including medical expenses, lost wages, property damage, and pain and suffering, exceed the at-fault driver’s insurance coverage limits.
You will also need to demonstrate the other driver’s actions were negligent and directly caused the accident. Our experienced South Carolina car accident lawyers can help you evaluate your case, determine your legal options, and guide you through the legal process. We will help empower you to make the best choice for yourself and pursue the compensation you deserve.
South Carolina Statute of Limitations
Under the South Carolina Code of Laws, you generally have three years from the date of your car accident injury to file a personal injury lawsuit. If you discover that your car accident claim exceeds insurance limits, you will want to act promptly to avoid jeopardizing your ability to receive compensation.
Get started by contacting an experienced car accident attorney as soon as possible to determine the right step forward for your claim.
Contact Us for Help With Car Accident Claims that Exceed Insurance Policy Limits
What happens when a car accident claim exceeds insurance limits? You may need to file a lawsuit to get the compensation you deserve.
If you are in this situation, do not delay in pursuing the fair compensation you deserve. Contact the car accident lawyers at Shelly Leeke Law Firm for a free case consultation to discuss your legal options and get the process started.
