Experiencing an accident can be traumatic, both physically and emotionally. The challenges often extend beyond the incident itself, especially when it comes to making claims for damages.
In personal injury claims, “damages” encompass both economic and non-economic losses, including property damage, medical expenses, lost wages, and compensation for pain and suffering. If you are found at fault for causing injuries, you might be concerned about the financial implications, particularly if your insurance coverage falls short.
What Happens If Your Insurance Is Not Enough?
If your minimum required insurance in Utah (for example, $25,000 per person and $65,000 per accident) isn’t sufficient to cover the damages, the injured parties can indeed sue you for the excess amount. For instance, if there are two victims with total damages of $100,000, your insurance will only cover $65,000, leaving you liable for the remaining $35,000.
Can Your Personal Funds Be Impacted?
Yes, if the damages exceed your coverage, your personal assets could be at risk. However, the good news is that your insurance company will typically work to minimize the payout by investigating any shared fault in the accident.
Utah operates under a modified comparative negligence rule, meaning that if the injured party is found partially at fault, their damages will be reduced accordingly. For example, if their total damages are $100,000 but they are deemed 20% at fault, they can only claim $80,000. If your insurance pays $65,000, you would then owe only $15,000 instead of $35,000.
Seeking Legal Help
Consulting with a personal injury attorney in Utah can be invaluable. They can advocate for you throughout the claims process, negotiate settlements, and help protect your assets.
If you cannot pay the owed amount, the injured party may pursue wage garnishment or place a lien on your property. This underscores the importance of having a good insurance policy to protect you.
If you have been involved in an accident that was not your fault, Contact us at 385-444-7545 or email in**@************ry.com for a free evaluation and let us help and guide you through the process.