Car accidents are traumatic incidents that cause physical, emotional and financial stresses for victims and their families. The situation can get even more complicated when the at-fault driver does not carry enough car insurance to cover the damages. Medical bills, vehicle repairs, lost wages and other costs can quickly add up, and victims often wonder how they will be compensated when the liable party’s policy limits are insufficient. Understanding your options can help you protect your rights and pursue its recovery successfully.
Minimum Liability Coverage and Its Limitations
Every state requires drivers to carry a minimum amount of liability insurance, which pays for bodily injury and property damage that the policyholder causes to others. However, these minimums are often quite low compared to the actual costs of a serious car accident. For example, New York state law requires that drivers carry bodily injury liability limits of at least $25,000 per person and $50,000 per accident. A hospital stay, surgery or prolonged rehabilitation can easily exceed these numbers. If the at-fault driver carries only the minimum required insurance, their policy might cover only a fraction of your expenses, leaving you with significant out-of-pocket costs.
So, what can injured parties do if the liable party does not have sufficient insurance to cover the damages. Here are a few options.
Use Your Uninsured/Underinsured Motorist Coverage
One of the most effective ways to protect yourself in these situations is by carrying uninsured/underinsured motorist (UM/UIM) coverage. This type of insurance is designed precisely for cases where the liable driver either has no insurance or does not have enough to fully compensate you.
Uninsured motorist coverage applies if the other driver has no insurance at all. Underinsured motorist coverage applies when the other driver’s coverage is too low to cover your damages. New York State requires drivers to purchase uninsured/underinsured motorist coverage.
File a Claim Under Your Own Collision or Medical Payments
Coverage
If you purchased collision coverage, your own insurance can pay for vehicle repairs regardless of fault. Likewise, medical payments coverage (MedPay) or personal injury protection (PIP) can help with medical expenses. The advantage of these types of coverage is that you receive compensation relatively quickly, without having to wait for disputes with the at-fault driver’s insurer to be resolved. The drawback, however, is that you may still be responsible for deductibles or limits.
File a Personal Injury Lawsuit Against At-Fault Parties
Another option is to pursue a lawsuit directly against the at-fault driver. If the at-fault driver lacks sufficient insurance, you can seek a court judgment requiring them to pay your damages out of pocket. However, this path comes with challenges. Many underinsured drivers have limited financial resources, which is often why they carry only minimum coverage in the first place. Even if you win in court, collecting on the judgment may be difficult. In some cases, you may be able to garnish wages, place liens on property, or seize assets, but the process can be lengthy and may not yield full recovery.
Identify Other Liable Parties
Sometimes, additional parties may share liability for the accident. For example:
Employer liability: If the at-fault driver was working at the time of the crash, their
employer could be held liable. Vehicle owner liability: If someone else owned the vehicle, their insurance will also apply. Third-party liability: In some cases, another driver, a manufacturer (for a defective vehicle part), or even a government entity (for poor road conditions) may share fault. Exploring these options can open up new avenues for compensation beyond the at-fault driver’s limited coverage.
How an Experienced Car Accident Lawyer Can Help
Navigating a car accident case where the liable party lacks sufficient insurance is rarely straightforward. Insurance companies often try to dispute fault, minimize damages, or delay payments. Identifying alternative sources of compensation, coordinating benefits between multiple policies, and understanding your rights under state law can be overwhelming on your own.
In such cases, retaining the services of an experienced New York personal injury attorney provides a number of benefits. Your lawyer can help you:
• Review all available insurance policies.
• Negotiate with insurers to maximize payouts.
• Investigate whether other parties share liability.
• File lawsuits if necessary to pursue compensation, and go to trial if that’s what you want.
• Advise you on long-term financial and medical planning.
Contacting an Experienced Lawyer
Injured victims of negligent (careless) drivers can seek compensation from at-fault parties for damages including, but not limited to, medical expenses, lost wages and benefits, hospitalization, rehabilitation, permanent injuries, disabilities, past and future pain and suffering, etc. Families that have lost loved ones in car accidents can seek compensation for damages such as lost future income, medical and funeral costs, pain and suffering, etc.
If you or a loved one has been injured in a car accident or pedestrian accident, or if you have lost a loved one in an auto accident caused by a negligent (careless) driver, the experienced New York personal injury attorneys at the Law Offices of Kenneth A. Wilhelm can help you better understand your legal rights and options, and also fight hard to recover just compensation for you.
For over 53 years, our skilled accident attorneys have established a proven track record of helping injured victims get fair compensation for their losses. Our law firm recently recovered $5,600,000 for a bicyclist who was hit by a van, and $2,550,000 for another victim of a truck accident, and $3,000,000 for a pedestrian who was hit by a car, and $2,000,000 in a hit-and-run accident, and the full $1,000,000 insurance policy for a pedestrian who was hit by a truck, and $4,625,000 for a driver who was in a car and was hit by a van, and $2,500,000 for a man who fell through an improperly secured hole. We also recovered $1,500,000 for a lady who was hurt by a bus.
We also obtained $295,000 out of a $300,000 insurance policy in compensation for the victim of a bicycle dooring accident (where a car door opens into the path of a bicyclist). One of our clients obtained a verdict for $43,940,000 and another of our clients got a verdict for $23,500,000, both in medical malpractice cases. Also, we got a $1,400,000 verdict in a motorcycle accident.
Please contact us TOLL FREE 24 hours a day, 7 days a week at 1-800-WORK-4-YOU (1-800-967-5496). WE CAN EVEN COME TO YOU. There is no attorneys’ fee unless we recover money for you. We can also help with personal injury, lead poisoning and medical malpractice cases including, brachial plexus palsy (Erb’s palsy) and cerebral palsy cases in New York, New Jersey, Connecticut, Pennsylvania, or Florida. If you have been seriously injured in any of the 50 U.S. states, please call us and we will try to help you with your case.
Other TOLL FREE phone numbers for us are:
1-800-RADIO-LAW, 1-888-WYPADEK, OR 1-800-LAS-LEYES
Please visit us at: www.WORK4YOULAW.com
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