Should Insurance Cover All of Your Losses After an Accident?

Car insurance will cover all of the losses after your accident up to the value of coverage available. Most insurance has a cap, or the highest amount paid out, and that means for victims of a car accident, it may not be possible to recover all damages through an insurance claim. There are other potential legal remedies, and depending on the situation, you may be able to recover all losses you have with the help of a professional auto accident attorney in Lexington at Gary C. Johnson.

Types of Insurance Available

There are several potential types of insurance you can file a claim against, depending on the situation. In Kentucky, this process is a bit more complex because the state is a choice no-fault state. That means that a driver can opt out of the state’s no-fault system.

Drivers can bypass the no-fault system. That gives them the right to sue a negligent driver for the damages they suffer. It also means that you can face a claim made against you through a lawsuit if you are at fault. In this situation, the driver rejects personal injury protection (PIP) coverage.

In most situations, Kentucky drivers will opt for PIP. In this situation, the driver must carry a minimum of $10,000 worth of coverage. You can file a claim for your losses up to the value of coverage you purchased through PIP.

Extensive Damages

If a driver has PIP coverage, but they also suffer serious injuries and losses, you may be able to seek additional compensation by suing the at-fault driver. This only applies if you have a minimum of $1,000 in accident-related medical bills, suffered a permanent disfigurement, injury, or loss of function, or fractured a weight-bearing bone. This means that most serious accidents in Kentucky will allow a driver to file a claim for additional compensation through a lawsuit, even with PIP in place.

Policy Caps and Deductible Factors

One of the limitations every driver faces when it comes to holding the insurance company accountable for losses is the policy cap. Insurance companies only pay up to the maximum amount of coverage. It does not matter if your damages are more than this. The insurance company is only responsible for the value up to the maximum coverage purchased.

You also may not receive full compensation due to deductibles. This is the portion of your losses you must pay first before the insurance company covers anything. Deductibles range in value from as low as $300 up to $2,000.

Non-economic Damages Are Limited

Non-economic damages are very real losses that car accident victims suffer. These are losses such as emotional distress, pain and suffering. PIP does not cover these losses, but only covers medical bills, lost wages, and related costs.

If a driver has liability insurance, it may cover noneconomic damages in your case. The value of your losses may be far more, though, than the policy cap.

Filing a Lawsuit

Ultimately, if someone causes serious injury to you, and there is not enough compensation available, you may be able to file a lawsuit against them with the help of an injury attorney in Lexington. This legal action allows you to see additional compensation beyond the insurance cap.

It is wise to work with a car accident attorney in these cases. Your Kentucky personal injury lawyer will help you examine all strategies to maximize the compensation you recover in your accident claim. Call (859) 268-4300 for a free consultation on your accident case.