What Happens When a Car Accident Claim Exceeds Insurance Limits in Florida?

Peter Catania | April 2, 2025 | Car Accidents

Dealing with the aftermath of a car accident is overwhelming. The emotional toll and mounting medical bills, vehicle repairs, and lost wages can create extreme financial stress. However, the situation becomes even more complicated when damages exceed the at-fault party’s insurance coverage.

Many accident victims ask, What happens when a car accident claim exceeds insurance limits in Florida? This situation requires a clear understanding of your options and legal rights. At Catania and Catania, we are dedicated to helping victims navigate these challenges and secure the compensation they deserve. This blog will explore steps to take when your compensation is limited by an insurer’s policy and how to recover the full amount you deserve.

What to Do If My Car Accident Claim Exceeds My Insurance Limit?

Claims exceeding insurance limits still have options for recovering damages. The first step is determining whether the at-fault party has additional assets or coverage. This may include umbrella insurance policies, personal assets, or other avenues for compensation. Here’s what you can do next:

• Pursue the at-fault party’s personal assets: Their insurance might not cover the total damages, meaning their personal assets, like property or savings, could help compensate for your losses.
• Check for umbrella insurance policies: Some individuals carry umbrella policies that can provide additional coverage beyond the standard policy limits.
• File a lawsuit: Should the other party refuse to cooperate or possess significant resources, legal action may be necessary, potentially resulting in full compensation for your damages.

Exploring your options is key to avoiding the financial burden of an accident that wasn’t your fault.

Florida is a No-Fault State

Florida operates under a no-fault insurance system, requiring all drivers to carry Personal Injury Protection (PIP) coverage. This policy helps cover medical expenses and lost wages, regardless of who caused the accident. However, PIP only provides up to $10,000 in benefits, often insufficient in severe accidents.

Unlike some states, Florida does not require drivers to carry Bodily Injury Liability (BIL) coverage. As a result, at-fault drivers may have little to no insurance to cover the injuries they cause. Even when an at-fault driver does carry coverage, their policy may not be enough to cover all damages.

Suppose a driver is found at fault in an accident and does not have the required coverage. In that case, Florida law mandates the following actions to reinstate their driving privileges:

• Purchase and maintain minimum liability coverage of $10,000/$20,000/$10,000, along with an SR-22 filing (certification of liability insurance) for three years from the suspension date. The insurance provider must certify this filing with the state.
• Obtain releases from other parties involved in the accident for property damages and/or bodily injuries or post a security deposit with the state for the amounts specified in the suspension notice.
• Pay a $15 reinstatement fee, if applicable.

Failing to meet these requirements can result in continued driver’s license and registration suspension.

How to Collect Damages Above the Insurance Settlement?

When damages surpass available insurance coverage, recovering compensation becomes more complex but still possible.

Uninsured/Underinsured Motorist (UM/UIM) Coverage

Carrying Uninsured/Underinsured Motorist (UM/UIM) coverage is one of the best ways to protect against drivers with insufficient coverage. Including this coverage in your policy can help cover the remaining damages after the at-fault party’s insurance is exhausted, providing financial relief for medical expenses, vehicle repairs, lost wages, and other costs associated with the accident.

File Legal Claims Against Other Defendants

Liability for an accident does not always rest solely on the driver. A claim may be filed against additional parties, such as vehicle manufacturers in cases of defective parts, local municipalities responsible for road hazards, or establishments that overserved alcohol to an impaired driver before the crash.

Pursue a Civil Judgment

Filing a lawsuit may result in a judgment that allows for wage garnishment, liens on property, or payment plans by the at-fault party. This ultimately provides a legal pathway to recover owed compensation and hold the responsible party accountable for their actions.

Negotiate Payment Plans

When obtaining a large settlement proves challenging, negotiating a structured payment plan with the at-fault party can serve as an effective alternative. This approach allows victims to secure compensation while avoiding lengthy litigation. It ensures that financial recovery remains viable, allowing victims to gradually obtain the funds necessary for medical expenses, lost wages, and other damages.

Should I Hire a Lawyer to Help Me File a Lawsuit?

Yes, hiring a lawyer is crucial for filing a lawsuit and securing full compensation if your claim exceeds insurance limits. Car accident claims become complex when policy limits are exhausted, and an experienced attorney can help in the following ways:

Investigation of Hidden Assets & Insurance Policies

Attorneys have extensive resources to identify additional insurance policies or locate hidden assets that could provide compensation. Through thorough asset investigations, subpoenas for financial records, and direct negotiations with insurers, they ensure all possible avenues for recovery are explored, helping accident victims maximize their settlements.

Legal Representation & Litigation

When insurers refuse a fair settlement, an attorney can escalate the case to court and pursue a more substantial compensation package. Legal action is crucial when recovering damages from personal assets or third-party liability claims, ensuring victims receive the full financial support they need.

Maximizing Compensation for Damages

A lawyer ensures that all damages are accurately calculated. This includes medical expenses for immediate and ongoing care, lost wages due to inability to work, and property damage costs. Compensation for pain, suffering, and emotional distress is also considered, ensuring victims receive the full financial recovery they deserve.

Take Action: Recovering Compensation Beyond Insurance Limits

Suffering injuries in a Florida car accident with damages beyond insurance limits can be overwhelming, but you still have options. Knowing what happens when a car accident claim exceeds insurance limits in Florida is key to obtaining the compensation you deserve.

At Catania and Catania Injury Lawyers, we have successfully helped accident victims in Tampa secure maximum compensation. Call us today at 813-222-8656 for a free consultation.