When a car accident claim exceeds insurance policy limits in Louisiana, the insurance company will only pay up to the maximum amount stated in the policy. Any expenses beyond that limit, such as medical bills, lost wages, or long-term care, are not automatically covered. That’s why many accident victims face serious financial strain after a crash.
At Crescent City Personal Injury, led by attorney John Radziewicz, we understand the stress and uncertainty you may be experiencing. Our team has helped countless New Orleanians navigate these difficult cases, uncovering every possible avenue for compensation so that clients are not left carrying the burden alone.
Louisiana’s Minimum Insurance Requirements Are Often Too Low
Under La. R.S. 32:900, Louisiana drivers must carry at least:
- $15,000 for bodily injury per person
- $30,000 for bodily injury per accident
- $25,000 for property damage
These minimums may seem like a lot on paper, but in reality, they barely scratch the surface of the costs after even a moderate crash. A single ER visit and follow-up treatment can surpass $15,000, and catastrophic accidents can quickly escalate into hundreds of thousands, or even millions, of dollars.
When Policy Limits Aren’t Enough, You Still Have Options
When the at-fault driver’s insurance is insufficient, you still have options:
1. Underinsured Motorist (UIM) Coverage
Many Louisiana drivers carry UIM coverage, which can step in when the at-fault driver’s policy doesn’t cover your full damages. This coverage can help pay for medical bills, lost wages, and other expenses.
2. Pursuing Additional Liable Parties
Sometimes more than one party bears responsibility. For example, an employer may be liable if the driver was on the job, or a construction company could be responsible if unsafe road conditions contributed to the crash.
3. Umbrella or Excess Policies
Some drivers or businesses carry umbrella insurance policies that extend coverage beyond the basic limits. These policies can provide critical relief in high-damage cases.
4. Legal Action Against the At-Fault Driver
In limited situations, you may pursue the at-fault driver’s personal assets. While this option can be challenging if the driver lacks resources, it may provide an additional path to recovery.
What is Louisiana’s “No Pay, No Play” Rule?
If you were uninsured at the time of the crash, Louisiana’s “No Pay, No Play” law (La. R.S. 32:866) prevents you from recovering the first $15,000 in bodily injury damages and the first $25,000 in property damage, even if the other driver was completely at fault.
This law was designed to encourage all drivers to carry insurance, but for victims, it can add another obstacle when pursuing justice.
What Are Bad Faith Insurance Claims?
Louisiana law requires insurers to act in good faith and settle claims fairly when liability is clear (La. R.S. 22:1973). If an insurance company refuses to settle within policy limits and exposes its insured driver to an excess judgment, it may be held liable for the full amount of damages through a bad faith insurance claim.
These cases are complex, but they can provide an opportunity for victims to recover more than the stated policy limits when an insurer acts unfairly.
Personal Injury Statute of Limitations in Louisiana
If you’re considering legal action, time is critical. Under Louisiana Civil Code Article 3492, most personal injury and property damage claims must be filed within two years of the accident. For uninsured/underinsured motorist (UM/UIM) claims, you generally have two years to file. Missing these deadlines can bar you from recovering compensation entirely.
Get Help From Crescent City Personal Injury, Contact Us Today
If your damages exceed insurance policy limits, don’t lose hope. Attorney John Radziewicz and our team fight tirelessly to investigate every possible avenue for compensation.
For our clients, this means more than legal work. It means compassion, guidance, and an unwavering commitment to protecting your future. Contact us today at 504-608-0084 or contact us online for a free, confidential consultation.
Frequently Asked Questions
1. What happens if my medical bills are higher than the at-fault driver’s insurance?
The insurer will only pay up to policy limits. From there, you may use your UIM coverage or pursue other liable parties to recover the difference. An experienced attorney can help identify every available source of compensation so you aren’t left with overwhelming debt.
2. Can I sue for more than the driver’s insurance coverage?
Yes. If your damages exceed the policy limits, you can file a lawsuit against the at-fault driver personally or explore other parties who may share liability. However, the success of this option often depends on whether the driver or other parties have sufficient resources to pay.
3. What if the at-fault driver has no assets?
If the driver has little or no personal wealth, collecting beyond policy limits may be difficult. In these cases, your attorney can explore other coverage sources, such as UIM or employer liability. This is why it’s important to examine all possible avenues, not just the driver’s insurance.
4. How does Louisiana’s “No Pay, No Play” law affect me?
If you were uninsured at the time of the crash, you cannot recover the first $15,000 of bodily injury damages and the first $25,000 of property damage, even if you weren’t at fault. This law places uninsured drivers at a significant disadvantage when seeking compensation.
5. What is a bad faith insurance claim?
If an insurance company unreasonably refuses to settle within policy limits, you may be able to hold them accountable for the full damages through a bad faith claim. These cases can also allow you to seek penalties or additional damages against the insurer for acting unfairly.
6. How long do I have to take legal action?
You generally have two years from the date of the accident to file a personal injury lawsuit in Louisiana. UM/UIM claims have a two-year limit. Acting quickly is critical, because once the deadline passes, you lose your right to pursue compensation.