Car accidents can lead to extensive medical bills, property damage, and lost wages. But what happens when the at-fault driver’s insurance coverage isn’t enough to cover all your expenses? This is a common concern, particularly in severe accidents where damages far exceed policy limits. In North Carolina, victims have legal options, including underinsured motorist coverage and personal injury lawsuits, to recover full compensation. If you’ve found yourself in an accident with an underinsured motorist, contact one of our car accident attorneys today, who will sit down with you and explore your options – free of any cost or obligation to retain us.
Understanding Insurance Policy Limits
Every auto insurance policy has coverage limits, which represent the maximum amount an insurer will pay for a claim. North Carolina requires minimum liability coverage of:
- $30,000 for bodily injury per person
- $60,000 for total bodily injury per accident
- $25,000 for property damage
While this coverage may be sufficient for minor accidents, it is often inadequate for serious injuries or multiple-vehicle crashes. If the total damages exceed these limits, victims may struggle to recover full compensation.
What Are Your Options If Damages Exceed Insurance Limits?
1. Filing a Claim Against Underinsured Motorist (UIM) Coverage
Underinsured Motorist (UIM) coverage is designed to cover the gap when the at-fault driver’s insurance is insufficient. North Carolina requires insurance providers to offer UIM coverage, but it is optional for drivers to purchase.
Example: If the at-fault driver’s policy covers $30,000 in bodily injury, but your medical bills total $50,000, UIM can cover the remaining $20,000—provided you have adequate coverage.
2. Pursuing a Personal Lawsuit Against the At-Fault Driver
If UIM coverage isn’t available or isn’t enough, you may consider filing a personal lawsuit against the at-fault driver. However, this option comes with challenges:
- Many at-fault drivers lack significant personal assets to cover large settlements.
- North Carolina follows contributory negligence, meaning if you are even 1% at fault, you may be barred from recovering compensation.
- The process can take time, and securing a judgment does not guarantee payment.
3. Exploring Third-Party Liability
In some cases, other parties may be partially responsible for the accident, including:
- Employers (if the at-fault driver was on duty at the time of the crash)
- Car manufacturers (if a vehicle defect contributed to the accident)
- Government entities (if poor road maintenance played a role)
An attorney can help investigate potential third-party liability to increase available compensation sources.
How a Personal Injury Attorney Can Help
Dealing with insurance companies and legal complexities after an accident can be overwhelming. A car accident attorney can:
- Negotiate with insurance providers to maximize your settlement.
- Identify additional liable parties to pursue compensation beyond insurance limits.
- Handle lawsuits if necessary to recover damages.
- Ensure compliance with North Carolina’s legal deadlines and procedures.
Frequently Asked Questions
1. Can I sue the insurance company if they refuse to pay more than the policy limit?
No, insurance companies are only required to pay up to the policy limit. However, if they act in bad faith or unreasonably delay payment, you may have grounds for a separate legal claim.
2. What happens if multiple people are injured in the same accident?
When multiple victims file claims, the insurance company distributes the policy limit among all claimants. This can significantly reduce the amount available per person.
3. How do I find out if the at-fault driver has more coverage?
Your attorney can request disclosure of policy limits during settlement negotiations. In some cases, legal action may be required to uncover additional coverage.
4. What if I don’t have underinsured motorist coverage?
If you don’t have UIM coverage, your options may be limited to suing the at-fault driver or seeking alternative insurance claims, such as medical payments coverage (MedPay).
5. How long do I have to file a lawsuit if the insurance isn’t enough?
In North Carolina, the statute of limitations for personal injury lawsuits is three years from the date of the accident. It’s best to consult an attorney as soon as possible.
Helpful Resources
- North Carolina Department of Insurance
- National Highway Traffic Safety Administration
- Insurance Journal
Contact Kellum Law Firm for Legal Help
At Kellum Law Firm, we understand the challenges accident victims face when insurance coverage isn’t enough. Our experienced attorneys help clients in Raleigh, New Bern, and across North Carolina pursue maximum compensation for their injuries. If you’ve been involved in a car accident and need legal guidance, contact us today for a free consultation.
