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What Happens When Your Liability Coverage Is Less Than The Damages

Liability Coverage

Accidents happen, it is important that when they do you are covered, whether you are at fault or not. Automobile liability insurance is what covers you if you happen to be in an accident that is declared your fault. If you have been in an accident or if you just want to make sure you are covered, find a car accident lawyer Orlando can count on at the Payer Law. We can help make things easier in the aftermath of an accident.

What are the Basics of Liability Coverage?

When consumers shop for an auto insurance policy, they tend to start with the required minimums and work their way up depending on what they can afford or what they think they will need. Each state has different requirements; for the state of Florida, a driver is required to have at least $10,000 in personal injury protection and $10,000 property damage liability coverage. Although Florida is considered a ‘no-fault’ state, that doesn’t mean you cannot be sued for damages to another driver or their property; as there are some extreme exceptions to the no-fault statute. With that said, if you find yourself underinsured, you could be causing more harm to yourself than anyone else. Not only could you be responsible for any property damage you cause, but you also have to be able to cover your own property as well. If you need more information on how being in a ‘no-fault’ state can affect your case, contact a car insurance lawyer Orlando trusts to keep their clients informed.

What If My Automobile Liability Insurance Doesn’t Cover Damages?

If you are underinsured and your liability insurance doesn’t cover the full cost of the damage, you might be responsible for the rest out of pocket. For example, if you are in an accident where the property damage is $20,000, and you only have the state minimum of $10,000 of property damage liability, that means the extra might have to come out of your pocket. There are a few different scenarios where this could get worked out. Because you are in a ‘no-fault’ state, the claim for damages goes back to your own insurance, not the other driver’s. In this instance, if it is your own property you can either find a less costly way to fix it, see if the car is even worth fixing, or find another financial solution. However, if you are underinsured and being sued for damages from another party involved in the accident and it is taken to court, there might be ways to argue the cost down to fit the amount of your liability coverage.

What Can I Do to Be Better Protected?

Insurance is expensive, and liability insurance is generally the most expensive portion of your policy it is, however, it is extremely risky to be under-protected. Finding an insurance lawyer can help you make sure you get the right coverage, and they can help you further in case of an accident. It is also a good idea to you raise your liability coverage. Many people can’t afford the extra expense, but there are ways you can trim around other areas of your policy to compensate. You could essentially raise your deductibles for collision and comprehensive insurance, meaning you’re still covered in case either of these is triggered, but you will have to pay more out of pocket if they are. This might be considered a risky move as well, but it is better to be short on coverage for your own property than someone else’s. If you are unable to pay for damages to someone else’s property, it could result in massive amounts of debt, the need to take out loans or extra mortgages, even seizure of assets in extreme cases.

Contact Us

Don’t be caught under protected. The wrong automobile liability insurance coverage after an accident could leave you stranded. Find a car accident lawyer Orlando can count on to make sure you have the protection you need when it counts. Call or visit the Payer Law today for more information.

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