The Other Driver’s Insurance Isn’t Enough to Cover Your Injuries in PA. What Happens Next?
You were injured in a car accident in Northeast Philadelphia or Bucks County, and the other driver was responsible. You’ve been going to medical appointments, missing work, and dealing with expenses you weren’t prepared for.
Then the insurance company tells you the other driver’s policy has a $15,000 bodily injury limit. Maybe your hospital bills already exceed that amount, or your doctor says you’ll need additional treatment.
Now you’re wondering what happens to the rest of your expenses. Is $15,000 all the other driver’s insurance will pay? Are you responsible for everything else?
In Pennsylvania, the other driver’s insurance limit does not necessarily determine how much compensation you can pursue after an accident. Depending on the coverage available and your circumstances, you may have other options, including underinsured motorist coverage through an applicable automobile insurance policy.
Understanding where that additional coverage can come from is important before accepting a settlement that doesn’t account for your injuries and losses.
What Happens When the At-Fault Driver’s Insurance Isn’t Enough?
Pennsylvania requires drivers to carry minimum bodily injury liability insurance of $15,000 per person and $30,000 per accident.
That means someone can legally carry a policy that provides only $15,000 in bodily injury liability coverage for one injured person.
Consider what happens when another driver causes a crash that leaves you with a fractured leg, an extended recovery, and several weeks away from work. Your medical expenses and lost income could exceed that driver’s insurance limit before you’ve finished treatment.
The insurer generally isn’t required to pay beyond the applicable policy limit simply because your losses are greater.
But the insurance company’s payment limit is not necessarily the same as the total value of your injury claim.
If your damages exceed the available liability insurance, the next question is whether another source of compensation is available.
Can Your Own Insurance Pay if the Other Driver Doesn’t Have Enough Coverage?
You might assume that because the other driver caused the accident, only their insurance company is responsible for covering your injuries.
But your own or another applicable automobile insurance policy can become important when the at-fault driver’s coverage falls short.
Pennsylvania offers underinsured motorist coverage (UIM), which is designed to help compensate injured people when a negligent driver doesn’t carry enough liability insurance to cover their damages.
For example, suppose the responsible driver’s policy has a $15,000 bodily injury limit, but your covered losses are substantially greater. If an applicable policy includes UIM coverage, you can pursue additional compensation under that coverage, subject to the policy limits and legal requirements.
UIM coverage is optional in Pennsylvania. Insurers must offer it, but policyholders can reject it in writing under the requirements of 75 Pa.C.S. § 1731.
This is why reviewing your insurance documents matters. You cannot assume you have UIM coverage simply because you have automobile insurance.
What if You Have Stacked Underinsured Motorist Coverage?
Another factor is whether your UIM coverage is stacked.
Stacking allows coverage limits associated with multiple insured vehicles or applicable policies to be combined under qualifying circumstances.
For instance, a household with multiple insured vehicles may have access to higher UIM limits if stacked coverage applies.
Under 75 Pa.C.S. § 1738, Pennsylvania generally provides for stacking unless it has been validly waived. Whether stacking is available in your situation depends on the policies, applicable waivers, and the circumstances of the accident.
An attorney can review the insurance documents to identify potentially available coverage that might otherwise be overlooked.
What About Your Medical Bills While the Insurance Claim Is Pending?
You shouldn’t have to wait until the liability claim is resolved to determine how your immediate medical bills will be handled.
Under Pennsylvania law, auto insurance policies covering most passenger vehicles must include at least $5,000 in first-party medical benefits for covered individuals.
These benefits generally pay covered accident-related medical expenses regardless of which driver caused the crash, up to the applicable limit.
That means your initial medical expenses can be handled through first-party coverage rather than waiting for the other driver’s liability insurer to accept responsibility.
If your medical bills exceed the available first-party benefits, other coverage, including health insurance, can become relevant. How those benefits interact depends on the applicable policies and Pennsylvania law. Generally, you cannot recover the same medical expenses twice when they have already been paid or are payable through certain insurance benefits.
Keep copies of medical bills, insurance correspondence, and payment notices. These records can help establish which expenses have been paid, which remain outstanding, and what additional losses may be recoverable.
Can You Sue the Other Driver for Damages Beyond Their Insurance Limits?
The other driver’s insurance limit does not automatically cap their personal legal liability.
If their negligence caused damages exceeding the available coverage, you can potentially pursue a claim against them for the remaining recoverable losses.
But obtaining a judgment and actually collecting the money are different matters.
The driver might not have sufficient assets or income to satisfy a judgment beyond what insurance pays.
Before deciding how to proceed, it’s important to evaluate the full extent of your damages, the insurance available, and the realistic prospects for collecting compensation.
The goal is not simply to pursue the largest possible claim on paper. It’s to identify which sources of recovery are legally and practically available.
Should You Accept the Other Driver’s Insurance Policy Limits?
Suppose the other driver’s insurer offers you the full $15,000 available under its policy.
That might sound like the maximum you can recover, especially if the adjuster tells you the company cannot offer anything more.
But a policy-limits offer does not necessarily mean all available compensation has been identified.
Before accepting the settlement, you should understand whether an applicable UIM policy provides additional coverage and whether the proposed release could affect your rights.
If you have underinsured motorist coverage, settling with the responsible driver without first addressing any notice, consent, or subrogation provisions in the applicable UIM policy can complicate your additional claim.
The insurer providing UIM coverage may have contractual or subrogation rights that need to be considered before you release the responsible driver from further liability.
You should also consider whether your medical condition has stabilized enough to evaluate the losses associated with the accident.
Once a settlement and release are finalized, you may be giving up important rights against the parties identified in that agreement. Having the proposed settlement reviewed beforehand can help you understand what you’re accepting.
Does Limited Tort Affect What You Can Recover?
Pennsylvania’s limited-tort and full-tort rules can also affect the damages available after a car accident.
If you have limited tort, your ability to recover compensation for pain and suffering and other noneconomic losses is generally restricted unless your injuries meet the serious-injury threshold or an applicable exception applies.
Full tort generally preserves a broader ability to pursue those damages when another driver’s negligence causes an injury.
Limited-tort restrictions can also affect uninsured and underinsured motorist claims, and the exceptions that apply may differ depending on the type of claim. Having UIM coverage does not automatically mean every type of damage is recoverable.
The important distinction is that insurance limits determine how much a particular policy can pay, while tort rules can affect which damages you’re legally entitled to pursue.
Both issues deserve consideration when evaluating a claim that exceeds the other driver’s insurance.
What Should You Do if the Other Driver’s Insurance Won’t Cover Your Losses?
If you’ve learned that the responsible driver’s coverage is insufficient, start by gathering the information needed to understand the remaining options.
Keep the other driver’s insurance information and any written confirmation of their liability limits. Obtain the declarations pages for applicable automobile policies, including information about UIM coverage and stacking.
Continue following appropriate medical recommendations and maintain records of treatment, bills, lost wages, and how the injuries affect your ability to work and carry out daily activities.
If the insurer has offered a settlement, preserve the written offer and any proposed release before signing.
An attorney can examine the policies, assess the damages supported by your records, and help determine whether additional insurance coverage or another avenue of recovery is available.
Other Driver’s Insurance Isn’t Enough? Speak With Cohen & Riechelson
Learning that the other driver’s insurance won’t cover your injuries can be frustrating, especially when you’re still receiving treatment and trying to manage missed paychecks or mounting expenses.
At Cohen & Riechelson, we represent people injured in car accidents throughout Northeast Philadelphia, Bensalem, Bucks County, and surrounding Pennsylvania communities.
Our attorneys can review the available liability insurance, determine whether underinsured motorist coverage applies, and evaluate your options for pursuing compensation beyond the responsible driver’s policy limits.
If you’ve been injured in a Pennsylvania car accident and the other driver’s insurance isn’t enough to cover your losses, contact Cohen & Riechelson for a free consultation. We can review your circumstances, explain the coverage issues that matter, and help you understand how to move forward.
Disclaimer: This blog is provided for informational purposes only and should not be construed as legal advice. Reading this content does not create an attorney-client relationship. For guidance regarding your specific legal matter, please contact our office to discuss your situation.