17 May, 2024
An accident has the potential to cause substantial bodily injury and property damage. To cover such possible losses, most people carry liability coverage; in many cases, the minimum coverage necessary to comply with federal and state laws. When injuries are serious, policyholders face a risk of being sued for more than their insurance coverage.
Suppose a vehicle owner carrying $30,000 liability coverage caused an accident that caused a disabling injury worth $110,000. In that case, the injured victim may stare at $80,000 in uncompensated losses.
The losses just don’t go away, the injured victims often file a personal injury lawsuit to obtain a court order that compels the at-fault party to pay from their assets. Depending on the circumstances, the court could require the driver to forego their wages or put a lien on their property.
If you are facing a personal injury claim against an underinsured party, seek representation from an experienced personal injury attorney immediately.
Disclaimer: *Steve and Rich Barnes have obtained millions in recoveries for their clients and have supervised over $2.5 Billion Dollars in settlements.Getting our clients the best result possible
If an injured party wins a lawsuit against you for more than your insurance coverage, anything of value could be seized to cover the judgment, including:
If you don’t have sufficient assets to satisfy an award, you may be forced to give up a portion of your wages to the injured victim until they recoup the amount allocated by the court order.
Even if you don’t have assets now, future assets and income could be seized. Most judgments are renewable, meaning they could be valid for many years in the future. So, if you plan to own assets and income in the future, a settlement award will remain a dark cloud hanging on your head.
A court can enforce a settlement from future assets such as royalties, tax refunds, commissions, stock dividends, stock options, insurance payouts, and certain types of trust income. Past assets you’ve recently transferred to someone else may be vulnerable as well.
The state law exempts certain properties, especially the primary residence from being taken over by a creditor. The role of exemption laws is to protect consumers and their families from poverty and preserve their ability to be productive members of society and achieve financial independence.
For instance, retirement assets may be exempt from recovery if they are in a retirement or pension plan regulated by the Employee Retirement Income Security Act (ERISA). Examples of retirement plans covered by ERISA include pension plans and 401(k)s.
Depending on your state, some of the cash value in a life insurance policy may be protected.
The policy limit is the maximum amount an insurer is willing to pay after an accident is eligible for coverage. Suppose you have auto insurance coverage with a bodily liability coverage of $40,000 and were involved in an accident where a victim suffered a back injury worth $60,000.
In that case, the insurance will not cover the extra $20,000 in injury-related losses beyond the policy limit on the auto insurance plan. Since being sued after an accident is a stressful experience, drivers can minimize liability by constantly reviewing their coverage.
The insurance provider has to make a settlement payment up to the limit of a policyholder when applicable. If the losses of an auto accident exceed the coverage from an insurer, the injured victim may sue you to recover injury-related losses.
If someone sues you beyond your insurance coverage, a hefty judgment award can affect your finances. However, you can defend yourself in court. You have the opportunity to respond to the lawsuit by demonstrating that you lack the financial ability to pay a potential judgment. Responding to a lawsuit gives the defendant a fighting chance and a platform to provide your side of the story.
Defendants in such cases might also present different defense strategies, including comparative negligence. If the injured victim was partly liable for the accident, their settlement award may be reduced by their percentage of fault. This might bring their claim within your policy limits, eliminating the fear that a judgment might affect personal assets.
If you lack the funds to pay the entire settlement award, you might negotiate a post-judgment settlement with the plaintiff. Sometimes, they will accept something rather than nothing.
If a settlement exceeds the at-fault’s driver insurance coverage limits, the injured victim may explore other options for obtaining compensation.
The injured victim may opt to file a lawsuit against multiple other parties who contributed to the accident. In addition to the at-fault driver, the plaintiff could initiate a lawsuit against a government agency due to improper road maintenance which contributed to the accident or an employer who shared liability for an employee’s negligence.
Alternatively, the injured party could use the coverage offered by an underinsured motorist or umbrella policy to get additional compensation for their losses.
What if you are an injured party bringing a claim after a car accident, and your losses are more than the liable party’s insurance coverage? First, always have an experienced personal injury attorney on your side from the start. They can determine the best strategy for seeking full compensation for your losses despite inadequate coverage.
Your injury lawyer can identify additional liable parties, files underinsured motorist claims, use no-fault insurance when applicable, and more. A skilled personal injury attorney will know how to piece together all available resources to seek the compensation you deserve. They will look beyond the primary party’s minimal insurance coverage when necessary.
Locations we serve:
Car Accident Lawyer Los Angeles
San Francisco Car Accident Lawyer
Locations we serve:
Long Island Car Accident Lawyer
Rochester Car Accident Attorney
If you are facing a claim against an underinsured party, it can be challenging. The Barnes Firm Injury Attorneys has resolved accident claims for many satisfied clients, and we are ready to evaluate your situation.
Contact us online or at (800) 800-0000 for a free case evaluation.
Written by The Barnes Firm, reviewed by Richard Barnes
Rich Barnes
President
Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”
Years of Experience: 30+ years
LinkedIn Profile: Richard Barnes
Getting our clients the best results possible.
or call us at
(800) 800-0000
“I had an outstanding experience with The Barnes Firm, thanks to Nahuel Cruz and Aybike Donuk. Their professionalism, expertise, and dedication were evident through...
“Both Jeff Bodily and Mayra Wallis were wonderful to deal with. Very professional, knowledgeable, supportive and helped me navigate through a very stressful time af...
“My personal Injury Attorney was Jake Otis, he provided accurate timely advise and encouragement throughout the process. He is a true gentleman , his knowledge and ...
“I’ve had an exceptional experience with Mory Ahmadi, Esq. from the Barnes Firm. Mory’s professionalism, knowledge of personal injury law, and compassionate app...
“My personal injury lawyer was The Barnes Firm, they helped me with my injury lawsuit. I can’t thank them enough! John Sheehan and his team were there for me ever...
“I had a great experience working with Richard Amico and his team. They were responsive to my questions and got me a great settlement. They definitely were working ...
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney president Rich Barnes who has more than 30+ years of legal experience as a practicing personal injury trial attorney.
The Barnes Firm is here to help you. Our personal injury firm helps individuals and their families who
have suffered an injury in an accident.
Whether your car crash was minor or serious, any injuries sustained in an accident can be painful and costly.
All motorcycle accidents are different, the compensation you receive will depend on the circumstances surrounding your accident.
A truck accident can be catastrophic, even in low-impact crashes, if you or your family are involved, you may be entitled to significant financial compensation.
There are dozens of accidents involving school buses each year, most commonly, involving children outside a school bus.
Explore Articles Related to Your Situation
Every November, clocks are set back an hour as the United States switches from Daylight Savings...
read more
Whiplash is a soft tissue injury around your neck and spine that’s also called a neck sprain....
read more
Those who’ve been in a car accident understand the struggle of dealing with insurance...
read more
After an accident, settlements help to cover the financial burden incurred due injuries and dam...
read moreWe are always available to discuss your case. Give us a call at (800) 800-0000.
Fill out our form and we will contact you shortly to discuss your case
Our attorneys will come to your home, office or hospital at your convenience.
We are available anytime, including after hours and
weekends.
420 Lexington Avenue
Suite #2140
New York, NY 10170
Phone: (800) 800-0000
Fax: +1 (800) 853-5153
600 Old Country Road
Suite #425
Garden City, NY 11530
Phone: (800) 800-0000
Fax: +1 (800) 853-5153
500 Pearl Street
Suite #700
Buffalo, NY 14202
Phone: (800) 800-0000
Fax: +1 (800) 853-5153
451 Grider Street
Buffalo, NY 14215
Phone: (800) 800-0000
Fax: +1 (800) 853-5153
28 East Main Street
Suite #600
Rochester, NY 14614
Phone: (800) 800-0000
Fax: +1 (800) 853-5153
633 West 5th Street
Suite #1750
Los Angeles, CA 90071
Phone: (800) 800-0000
Fax: +1 (888) 800-7050
555 12th Street
Suite #1470
Oakland, CA 94607
Phone: (800) 800-0000
Fax: +1 (888) 800-7050
655 W. Broadway
Suite #940
San Diego, CA 92101
Phone: (800) 800-0000
Fax: +1 (888) 800-7050
