Can you sue for more than policy limits in Utah? You can sue an at–fault party for all damages, including those that exceed the threshold in car accident cases.
If the total exceeds their insurance policy coverage, the at-fault party is responsible for the excess. In general, you will need help from a Salt Lake City personal injury lawyer to get a court judgment.
When an at-fault party lacks sufficient personal assets to pay damages not covered by their insurance, a court may require them to pay the outstanding amount through post-judgment enforcement tools such as wage garnishment, real estate liens, or bank account levies.
When You Can Sue an At-Fault Party For Damages After A Utah Accident Injury
Utah is a no–fault state. That means you can claim from your own Personal Injury Protection (PIP) insurance if you get hurt. In cases where PIP insurance is adequate, you likely wouldn’t need to sue. But this only applies in certain contexts.
No-fault rules do not apply in:
- Motorcycle accidents
- Premises liability accidents
- Dog bite claims
- Product liability lawsuits
- Medical malpractice
- Certain car accident cases
If your injury comes from a car crash, your PIP insurance applies regardless of who was at fault. You can only sue at-fault parties if your injuries exceed a certain threshold or have long-term consequences, such as permanent disability.
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Typical Insurance Policy Limits in Utah
To illustrate policy limits, we may consider a car accident case. All drivers are required to have no–fault Personal Injury Protection (PIP) insurance coverage. They must also have liability insurance. However, these policy limits may not cover your damages.
A single surgery can cost you far more than you can recover through your no-fault PIP insurance and the other driver’s at-fault liability insurance combined.
Most individuals, and almost all businesses, know that accident damages can exceed basic policy limits. They may opt for policies with higher limits. If this is still not enough, you can sue for more than policy limits in Utah.
How You May Recover Damages if You Sue For More Than Policy Limits
As you can see, you can get a verdict for compensation above policy limits, but recovering your damages from someone with limited assets is another matter.
Possible sources of funds to pay damages awarded when they exceed insurance policy limits include:
- The at-fault party’s assets
- Any additional policies they have, for example, general liability insurance
- Other parties who contributed to the cause of your accident
It is worth remembering that when an individual is working for an employer at the time of an accident, the employer, rather than the at-fault person, may be liable for damages. Employers generally have higher policy limits and more assets than individuals.
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Insurance Bad Faith And Damages Over Policy Limits
The law does not typically require insurance companies to pay additional damages when sued for more than the policy limits in Utah. However, there is an exception. If an insurance company declines a justifiable claim within policy limits, the insured person may become liable for damages.
If an insurance company exhibits bad faith under Utah code Section 31A-26-303, common law and precedent allow the insured person to sue.
A court may decide that an insurance company should pay the full policy limit, plus the excess it would not ordinarily have been liable for. The injured person receives full compensation, even though they sued for more than the policy limit.
For example, a policy has a limit of $30,000. The insurer declines a claim without a valid reason. A court later awards the plaintiff $150,000 in damages. The insured defendant sues the insurance company. If they win, the insurer may be required to pay the full judgment.
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Challenges When You Can Sue for More Than Policy Limits In Utah
Although you can sue for more than policy limits, recovering your compensation may become a challenge. The question is always whether the defendant can pay amounts that exceed insurance policy limits.
An effective injury lawyer should be able to investigate obstacles such as asset limitations, bankruptcy protections, and whether the costs of litigation may outweigh the potential for recovery. They can also examine your own insurance coverage to see whether you can claim from this source.
Your lawyer will understand when insurance does not help after a Utah car crash. They may explore avenues to combat this if any are available to them, and they can also examine your own insurance policies to see if they offer any relief.
Maximizing Compensation In Utah Injury Cases
Even when you sue for more than policy limits in Utah, you may still recover your damages at some point. For instance, monthly payments from a garnishing order can help you, and a lien against real estate means the defendant must pay you if they decide to sell up.
In some instances, it may be worth securing a judgment that exceeds policy limits, even if you do not receive the money immediately. To maximize your compensation, you need a lawyer who understands how to claim all your damages.
Illustrating this, most people are unaware of how to value and claim pain and suffering damages in Utah effectively. An experienced injury lawyer will know how to navigate this area. If the defendant’s policy limits do not cover all your damages, you can still hope to claim the remaining amount over time.
Find Out What You Can Sue For And How Policy Limitations May Affect Your Compensation
If someone caused your injuries, and you believe you may need to sue for more than policy limits in Utah, you should consult a lawyer. At Siegfried & Jensen, our lawyers understand your needs and know when it may be worth your while to take your matter to court.
A judgment means that the defendant remains liable to pay your damages, even if the total exceeds their insurance policy limits. Although recovering the excess amount is difficult, your lawyer will know when claiming it may ultimately benefit you.
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