Property Damage Release Inquiry
I was recently in a car accident, and the at-fault party only has the state’s minimum property damage coverage of $5,000, which unfortunately won’t cover my repair costs. Their insurance company is requesting that I sign a full release, which would absolve both them and the other party from any further claims. What are my options for pursuing compensation for damages that exceed the $5,000 limit?
If the $5,000 property damage coverage from the at-fault party’s insurance isn’t enough to cover your repair costs, you have a few potential options to seek compensation for the damages exceeding that amount:
Negotiate with the Insurance Company: Before signing any release, try to negotiate with the at-fault party’s insurance company. Explain that the damages exceed their coverage limit and request a higher settlement if they can adjust their offer.
Seek Compensation from the At-Fault Party: You can pursue a claim directly against the at-fault driver for the additional amount. This may involve filing a lawsuit in small claims court or civil court, depending on the amount of damages and your state’s laws.
Use Your Own Insurance: If you have comprehensive or collision coverage, you may file a claim with your own insurance company. They can cover the damages after you pay your deductible, and they may pursue the at-fault driver for reimbursement (subrogation).
Consider Uninsured/Underinsured Motorist Coverage: If you have this coverage on your insurance policy, it may help cover the costs above the at-fault party’s limits. Check with your insurance provider to see if this applies.
Consult an Attorney: If you feel overwhelmed or are unsure about the best path forward, it might be helpful to consult with a personal injury attorney. They can help assess the situation, advise you on your rights, and guide you in pursuing a claim.
Be cautious about signing any release, as it may prevent you from seeking further compensation. Make sure you fully understand the implications before proceeding.