Auto accidents can lead to significant physical, emotional, and financial stress. In such cases, you expect insurance policies to cover the costs of damages and injuries. However, sometimes the damages you suffer may exceed the policy limits of the at-fault party’s insurance. Understanding what happens in these situations is crucial for securing the compensation you deserve. We must unfortunately tell clients all the time that while they have significant damages, they are limited by the amount of insurance that the other side carries.
Insurance Policy Limits and Auto Accident Settlements in Kansas and Missouri
Insurance policies are bound by coverage limits, which represent the maximum amount an insurer is obligated to pay out in the event of an accident. These limits are agreed upon when the policy is purchased, and they define the insurer’s financial responsibility. In most cases, auto accident settlements stay within these policy limits. However, when damages exceed these limits, the insurance company only pays up to the coverage amount, leaving the policyholder potentially responsible for the additional costs unless the insurance company acts in bad faith (which is a topic for another day).
In Kansas and Missouri, minimum liability coverage requirements are in place of $25,000 per person and $50,000 total per accident (no matter how many people were injured), but these minimums may not be sufficient to cover all damages in severe accidents. For instance, if you suffer significant injuries requiring extensive medical treatment, or if there are multiple victims involved, the costs can quickly surpass the policy limits.
What to Do When Auto Accident Settlements Exceed Policy Limits
If you find that your damages exceed the at-fault party’s insurance policy limits, you have a few options:
Pursue a Lawsuit Against the At-Fault Party:
If the insurance coverage is insufficient, you can file a lawsuit directly against the at-fault driver or other liable parties. This approach may allow you to recover additional compensation beyond the policy limits, especially if the at-fault party has other assets. However, the cost of going to trial may exceed any potential recovery and the defendant may file bankruptcy after you get a judgment against him and her.
Explore Underinsured Motorist Coverage:
If you have underinsured motorist coverage as part of your own automotive insurance policy, this can help cover the gap between the at-fault party’s insurance limits and the total amount of your damages. Typically in Kansas and Missouri, you need to make sure you get permission from the under-insured motorist carrier to settle with the tortfeasors insurance.
Negotiate a Settlement:
Sometimes, your attorney can negotiate with the at-fault party’s insurance company to pay out the policy limits quickly while you pursue additional compensation through other means. This approach can be particularly useful if the insurer wants to avoid further legal action.
Consider a Missouri Tort Victims Compensation Fund Claim:
The Missouri Tort Victims’ Compensation Fund (“Fund”) exists to help compensate those who have been injured due to the negligence of another and who have been unable to obtain full compensation because the party at fault had no insurance, or inadequate insurance, or has filed for bankruptcy, or for other reasons specified by the law. The Fund was established in 1987 and revenue into the fund is generated by money paid as punitive damages in civil lawsuits. Every year the amount in the fund changes with some years having much more money in the fund for claimants than other years. In 2023, there were 2,545 claims filed with the Fund.
Common Reasons Auto Accident Victims Require Additional Compensation
Several factors may cause your damages to exceed the insurance policy limits, including:
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- Severe Injuries and Medical Costs: Serious injuries that require long-term treatment, rehabilitation, and ongoing care can result in medical bills that surpass policy limits.
- Loss of Income: If your injuries prevent you from working, you may need to seek compensation for lost wages. In cases of permanent disability, this can include future income loss as well.
- Pain and Suffering: Non-economic damages like pain, suffering, emotional distress, and reduced quality of life are often not fully covered by insurance policies.
- Permanent Disabilities: If the accident results in permanent disabilities, additional compensation may be necessary to maintain a reasonable quality of life.
How Foster Wallace, LLC Can Help
If your auto accident settlement exceeds policy limits, enlisting the help of an experienced Kansas City car accident lawyer is essential. At Foster Wallace, LLC, we specialize in these complex cases and can help you navigate the legal process to secure the compensation you deserve. Here’s how we can assist:
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- Case Evaluation: We thoroughly evaluate your case to determine the extent of your damages and assess whether pursuing additional compensation beyond policy limits is viable.
- Negotiation: Our attorneys work to negotiate with the at-fault party’s insurance company to seek a fair settlement. If necessary, we can negotiate directly with the at-fault party to ensure you receive adequate compensation.
- Litigation: If negotiations do not result in a satisfactory settlement, we are prepared to file a lawsuit and take your case to court. We will build a strong case, gathering evidence, interviewing witnesses, and presenting compelling arguments to seek additional compensation.
Trial Representation: If your case goes to trial, we will represent you, presenting the evidence and advocating for the maximum compensation possible.
Contact Foster Wallace, LLC, for a Free Consultation
If you have unfortunately been injured in an auto accident in Kansas or Missouri and your claim exceeds the insurance policy limits, contact Foster Wallace, LLC today. We offer a free, no-obligation consultation to discuss your case and explore your options.
To schedule an appointment, fill out our Contact Us form or call us directly at 816-249-2101. We are here to help you navigate this challenging time and secure the compensation you need to recover.
