Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When you suffer damages in an accident involving multiple at-fault parties, each party owes compensation up to the limits of their insurance policy. Under South Dakota law, if several defendants share a single policy limit, the insurer pays only up to that limit, even if the total damages exceed it. The unpaid portion remains the responsibility of the insured individuals.
1. Shared Policy Limits
South Dakota’s liability insurance law requires insurers to offer bodily injury limits on a per-accident basis. See SDCL 58-33A-54. When multiple at-fault parties share one policy, the per-accident limit is the insurer’s maximum payout for all claims combined.
2. Underinsured Motorist Coverage
If the shared policy limit does not cover your losses, check your own underinsured motorist (UIM) coverage. UIM covers the gap between the at-fault party’s limit and your total damages. See SDCL 58-12-33 and SDCL 58-12-38.
3. Suing Multiple Defendants
You may name all at-fault parties in a single lawsuit. The court apportions fault and awards damages under South Dakota’s comparative negligence framework at SDCL 21-1-3. Each defendant pays up to their percentage of fault, regardless of insurance limits.
4. Personal Liability Beyond Policy Limits
An insurer’s payment up to the policy limit does not shield the insured from personal liability for any shortfall. You can obtain a judgment against the insured individuals for the remaining balance and enforce it against their assets.
5. Contribution Among Tortfeasors
If one party pays more than its share, South Dakota allows contribution claims against co-defendants who bear a greater percentage of fault. See SDCL 21-1-1.
Helpful Hints
- Identify all at-fault parties and insurers early.
- Review policy declarations for per-accident vs. per-person limits.
- Consider your own UIM coverage to bridge any gaps.
- Use a settlement demand letter to preserve your claims.
- File suit before the three-year statute of limitations expires. See SDCL 15-2-14.
- Keep detailed records of medical bills, repair estimates, and lost wages.
- Consult a licensed attorney to navigate complex apportionment issues.