What if Medical Bills Exceed Policy Limits After Accident

After a car accident, it isn’t uncommon to be dealing with a lot – such as lost wages from being off of work, car repair estimates, and medical bills. In an ideal world, all of these expenses would be covered by the at-fault driver’s insurance. Unfortunately, there are many cases where a person’s medical expenses are greater than the other party’s insurance limits.

Insurance companies are only obligated to pay damages up to policy limits. In New York, minimum insurance policy limits are fairly low – which can leave an accident victim without enough money to pay off their bills. There are several options for seeking fair compensation for your accident, including filing a personal injury lawsuit or a claim with your own insurance company.

At The Odierno Law Firm, we are fierce advocates for clients who have been injured in all types of accidents. We work hard to help our clients get full compensation, including cases where their medical expenses exceed policy limits. Reach out to our law offices to schedule a free initial consultation with a Long Island car accident attorney.

What Are Insurance Policy Limits?

In New York, drivers are required by law to carry a minimum amount of insurance. To register your vehicle and obtain a license plate in New York, you will need: (1) no-fault insurance; (2) liability insurance; and (3) uninsured motorist insurance.

No-fault is also known as personal injury protection (PIP). This type of coverage pays for your immediate medical expenses, lost wages, and certain other expenses related to a motor vehicle accident regardless of who is at fault. Your own insurance will pay these costs through PIP. 

In New York, you must have at least $50,000 in no-fault insurance coverage. The purpose of this insurance is to make sure that people get their immediate expenses paid quickly without the need for litigation. PIP does not pay for things like repairing your vehicle or damage to another person’s property.

These types of losses are covered by a second type of required coverage – liability insurance. Essentially, if a claim is made against you by a third party for their losses in a motor vehicle accident, your liability insurance will pay your legal costs as well as the amount of any settlement or verdict at trial.

In New York, drivers are required to have minimum liability coverage for bodily injury and property damage. This includes:

• $25,000 for bodily injury for one person in an accident, or $50,000 for two or more people injured in a single accident;
• $50,000 for a wrongful death or $100,000 for two or more people killed in a car accident; and 
• $10,000 for property damage.

These limits are often referred to as 25/50/10 ($25,000/$50,000/$10,000). 

The third type of insurance that New York drivers are required to purchase is uninsured motorist coverage (often called UM insurance). This type of insurance protects you in the event that you are hit by a driver who doesn’t have car insurance or who cannot be found (hit-and-run driver).  UM coverage is the same as liability coverage for bodily injury – 25/50. However, it does not cover property damage.

Insurance companies are only required to pay for damages up to the policy limits. In other words, if you have medical bills – or other expenses – that exceed the at-fault party’s insurance policy limits, then you may not be fully compensated for your injuries. An experienced Long Island personal injury lawyer may be able to come up with other strategies so that you can get a fair settlement for your injuries.

Many New Yorkers only purchase the minimum insurance required because it is less expensive than additional coverage. As a result, it isn’t uncommon for an accident victim’s medical bills to exceed policy limits after a car accident. If you find yourself in that situation, our personal injury attorneys will work with you to help you get maximum compensation.

What Can You Do If Your Medical Bills Exceed Policy Limits? 

Insurance companies have no legal obligation to pay a settlement to an injury victim that is greater than policy limits. For example, if you have $100,000 in medical expenses and the at-fault driver only has coverage for $50,000 in bodily injury per person, then the insurance company is not required to pay you more than $50,000 for your medical bills.

So what can you do if your losses are greater than the at-fault party’s coverage? There are a few options that you can explore with your personal injury lawyer.

First, you may be able to file an underinsured motorist (UIM) claim with your own insurance company. While underinsured motorist coverage isn’t required in New York state, you can still purchase it. This type of insurance will pay for medical costs and other expenses that exceed the other driver’s policy limits. Your insurer will pay up to your own insurance limits for your UIM claim.

Second, the at-fault driver may have an umbrella policy. An umbrella insurance policy pays for excess expenses in the event that an accident exceeds insurance policy limits. Claims involving catastrophic injuries can involve medical expenses that far exceed policy limits, so this type of coverage can be important.

Third, you may be able to file a personal injury lawsuit against the at-fault driver. A person who causes a motor vehicle accident can be held financially responsible for the losses that they caused above and beyond the insurance policy limits. However, a personal injury claim may not be successful if the other driver lacks assets. Your Long Island car accident attorney can evaluate the potential for recovering compensation against the at-fault party through a lawsuit.

Fourth, your lawyer can analyze the accident report, witness statements, photos and videos of the accident scene, and other evidence to determine if a third party may be responsible for the crash. In some situations, another party – such as a government agency responsible for maintaining a road or the manufacturer of a faulty car part – could bear some responsibility for the crash. A seasoned car accident lawyer will assess the potential for bringing a personal injury claim against another party.

If you have steep medical bills that exceed the at-fault driver’s policy limits, you don’t simply have to accept the loss. Our car accident lawyers will work with you to help you get maximum compensation for your injuries.

Work with a Long Island Personal Injury Law Firm to Get Maximum Compensation

Being in a motor vehicle accident can be traumatic. If you are also worried about paying your medical bills, it adds a whole other layer of stress. Fortunately, there are options if your medical expenses are greater than the at-fault driver’s policy limits.

The Odierno Law Firm represents clients in Suffolk County and Nassau County who have been hurt in motor vehicle accidents. For each case, our goal is to help our clients get fair compensation. To learn more or to schedule a free consultation with a Long Island car accident lawyer, give us a call at 631-994-1868 or fill out our online contact form. 

Related:

Car Accident While Driving for Work on Long Island

Is New York a No-Fault Accident State?

Average Pedestrian Accident Settlement in New York

Average Slip and Fall Settlement in New York