If your car’s damage exceeds your insurance policy limits in Tennessee, you may still have several legal options available to you. These can include filing a Nashville auto accident claim against the at-fault driver, using optional insurance such as collision coverage, negotiating with the insurance companies, and pursuing a lawsuit to recover the remaining losses. The right path will ultimately depend on the facts and circumstances of your case.
Continue reading to learn about what you should do if your vehicle’s damage exceeds the limits of your insurance policy after a car accident, including when to contact a lawyer for help.
Filing a Claim Against the At-Fault Driver
Tennessee follows an at-fault insurance framework. This means the driver who caused the accident may be held liable for the property damage they caused. If your losses exceed your own policy limits, you can typically pursue a third-party claim against the at-fault driver’s liability coverage.
However, problems can arise if that driver also carries only minimal coverage. Tennessee law requires relatively modest minimum property damage liability limits, which may not fully cover the cost of repairing or replacing a newer vehicle. When that happens, additional steps may be necessary.
Using Your Own Optional Insurance Coverage
Many Tennessee drivers carry optional coverages that can help fill the gap when damages exceed basic limits. These policies may provide faster payment while other claims are still pending.
Depending on your policy, helpful coverages may include:
- Collision coverage for damage to your own vehicle
- Uninsured motorist property damage coverage
- Underinsured motorist property damage coverage
Using your own coverage does not necessarily prevent you from later seeking reimbursement from the at-fault driver. Your insurer may pursue subrogation to recover what it paid on your behalf.
Negotiating With the Insurance Companies
When damages exceed the available policy limits, insurance companies may attempt to settle the claim within those limits to avoid further financial exposure. This can lead to negotiations involving multiple parties, which is more likely to happen in serious crashes involving extensive property damage.
During these discussions, documentation becomes critical, such as repair estimates and bills. Careful negotiation may lead to a higher settlement offer than was initially offered, especially if you hire an experienced attorney to represent you.
Pursuing a Lawsuit for Your Remaining Losses
If insurance coverage is not enough to fully compensate you, Tennessee law generally allows you to file a personal injury lawsuit against the responsible driver. Through the litigation process, you may be able to recover the portion of your losses that exceeds all of the applicable insurance policies.
Of course, collecting a judgment can depend on the at-fault driver’s personal financial resources as well. This practical reality is one reason why exploring every insurance avenue first is often advisable.
Schedule a Free Case Review With a Trusted Car Accident Attorney
If you’ve been in an accident and your car’s damage exceeds your policy limits, don’t lose hope about what’s to come. You may still be able to recover compensation that fully makes up for all of your losses.
Get in touch with Woodard Injury Law today at (615) 880-6126 to learn about your best course of action and set up a free consultation. Our attorneys have recovered millions of dollars for our clients and work for a contingency fee, so you can hire us without paying anything upfront.