How To Get More Than Policy Limits in a Car Accident Settlement
Summary: If you’re wondering how to get more than policy limits in a car accident settlement, the answer often depends on identifying additional sources of compensation beyond the at-fault driver’s insurance. This guide explains how policy limits work and the legal options that may allow an injured victim to pursue a higher recovery.
- Understand what a policy limits settlement is and why insurers typically cap payouts at the policy maximum.
- Learn how often auto accident settlements exceed the policy limits and the situations where this may happen.
- Discover whether insurance will pay more than policy limits in cases involving bad faith or additional coverage.
- Find out if you can sue for more than policy limits and how a lawsuit may help you recover damages.
- See who pays the damages that exceed the policy limits, including liable parties, additional insurance policies, or other compensation sources.
After a serious crash, many people discover that the at-fault driver’s insurance policy may not fully cover their injuries, medical bills, and other losses. When that happens, it’s natural to ask how to get more than policy limits in a car accident settlement. While policy limits are often treated as the final ceiling for compensation, they may not always be — depending on the circumstances of your case.
With the help of experienced injury lawyers, injured victims may be able to pursue compensation beyond insurance coverage through additional legal strategies. Below, we explain how policy limits work and what options may exist if your damages exceed the policy limits.
What Is a Policy Limits Settlement?
A policy limits settlement occurs when the insurance company will pay the maximum amount available under the at-fault driver’s insurance policy. Every auto insurance policy includes coverage limits that cap how much the insurer must pay for injuries or property damage.
For example, a policy might include:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage
If an injured party suffers losses greater than those amounts, the insurer may still only offer the policy maximum. Often, insurance carriers will try to minimize what they owe you, but with the help of a reputable and experienced attorney, you may be able to maximize your recovery — at no additional cost to you.
Understanding a policy limits settlement is important because many injury claims start with negotiations focused on that maximum coverage amount. However, in certain circumstances, it may still be possible to recover damages beyond those limits.
How Often Do Auto Accident Settlements Exceed the Policy Limits?
In reality, most settlements stay within policy limits because insurers typically refuse to pay more than what their contract requires.
However, cases may exceed the policy limits when:
- Multiple parties share liability
- Additional insurance policies apply (ex.: other available policies, Umbrella Policies…)
- The insurer acted in bad faith
- The liable party has personal assets that can be pursued
- Opening Policy Limits — This is a rare and complex process that only a select few attorneys know how to accomplish. While we are unable to go into further detail here, it is a powerful tool that can make a significant difference in the outcome of your case, depending on the specific circumstances of the claims process and the case
In these situations, the total recovery may surpass the coverage limits of a single policy.
Will Insurance Pay More Than Policy Limits?
Typically, the insurance company will pay only up to the maximum amount specified in the policy. Insurance policies are contracts, and those limits define the insurer’s financial obligation.
However, there are exceptions. An insurer may pay more than policy limits if:
- The insurer handled the claim in bad faith-In a first party case (your own insurance)
- The insurer unreasonably refused a reasonable settlement demand
- Multiple policies apply to the claim
- Umbrella or excess insurance coverage exists
In rare cases, if it is your own insurance carrier, in Uninsured or Underinsured Motorist claims, bad-faith claims can force insurers to pay additional damages beyond the policy limit.
Can You Sue for More Than Policy Limits?
Yes, can you sue for more than policy limits is a question many accident victims ask.
If your damages exceed the policy limits, you may choose to file a lawsuit directly against the liable party. While the insurance company typically covers the defense and pays up to the policy limit, the driver who caused the crash may still be personally responsible for the remaining damages.
This may happen when:
- The injured party suffered severe or catastrophic injuries
- Medical expenses and lost income exceed insurance coverage
- The at fault driver carried minimal insurance
- The driver acted with extreme negligence
A successful lawsuit may allow victims to recover damages from the driver’s personal assets.
Who Pays the Damages That Exceed the Policy Limits?
Another key question is who pays the damages that exceed the policy limits.
When damages exceed the policy limits, responsibility may shift depending on the situation. Potential sources of compensation include:
The At-Fault Driver
If the court finds the driver responsible, they may be personally required to pay damages beyond what their insurance covers.
Additional Insurance Policies
Sometimes more than one insurance policy applies, such as:
- Employer liability if the driver was working
- Commercial vehicle insurance
- Umbrella insurance policies
These additional policies can increase the available compensation.
Your Own Insurance Coverage
In some cases, your own insurance may help cover remaining losses through:
- Underinsured motorist coverage (UIM)
- Personal injury protection (PIP)
These policies can help the injured party cover expenses if the liable party lacks sufficient insurance.
Situations Where Compensation May Exceed Policy Limits
Although most cases settle within policy limits, certain situations make it more likely that compensation may exceed the policy limits.
Severe or Catastrophic Injuries
Serious injuries such as brain trauma, spinal cord damage, or permanent disability often create financial losses far greater than typical insurance coverage.
Multiple Responsible Parties
If more than one person contributed to the crash, each party may have their own insurance policy that applies to the claim.
Commercial Vehicle Accidents
Companies typically carry higher insurance coverage than individual drivers, which may increase the total amount available for settlement.
Bad Faith by the Insurance Company
If an insurer refuses a reasonable settlement offer within policy limits and exposes the driver to greater liability, it may later be forced to pay damages exceeding the policy limit.
Steps That May Help You Recover More Than Policy Limits
If your losses exceed the at fault driver’s insurance coverage, certain steps may help maximize your compensation.
1. Conduct a Thorough Investigation
Your legal team will gather evidence such as:
- Police reports
- Medical records
- witness statements
- accident reconstruction evidence
This helps demonstrate the full extent of your injuries and financial losses.
2. Identify All Potential Sources of Compensation
Experienced injury lawyers often look for additional policies or liable parties that could increase the available settlement funds.
3. Document All Damages
To recover damages, it’s important to carefully document:
- Medical expenses
- Lost wages
- Future treatment costs
- Pain and suffering
The stronger your documentation, the better your chances of pursuing compensation beyond standard limits.
4. File a Lawsuit When Necessary
If negotiations fail, your legal team may file a lawsuit to pursue compensation from the liable party directly.
Litigation may uncover additional insurance coverage or financial assets that could help satisfy the claim.
Why Legal Representation Matters in High-Value Claims
Cases involving damages that exceed the policy limits can become complex quickly. Insurance companies often attempt to settle quickly for the lowest possible amount.
Skilled injury lawyers can:
- Evaluate whether additional insurance coverage exists
- Determine if the insurer acted in bad faith
- Negotiate aggressively with insurers
- File a lawsuit when necessary to pursue full compensation
Legal representation can make a significant difference when seeking compensation beyond policy limits.
Speak With Experienced Injury Lawyers About Your Options
If you were seriously injured in a crash and your damages exceed the policy limits, you still may have options. Understanding how to get more than policy limits in a car accident settlement often requires a detailed investigation and a strategic legal approach.
The attorneys at Oaks Law Firm help accident victims explore every possible avenue to recover damages and hold the liable party accountable. If an insurance company will pay only up to policy limits, your legal team can determine whether additional claims, insurance policies, or lawsuits may allow you to pursue the compensation you deserve.
Speaking with experienced injury lawyers can help you understand your rights and the next steps available after a serious accident.
Contact us today for a free case consultation!
The above information is a general overview intended for the initial evaluation of a case. It is not a complete assessment of the specific facts or circumstances of your particular case, nor does it cover all the legal nuances, technicalities, or laws pertaining to a particular case. This article provides general information and is not legal advice. For advice about your specific situation, consult a licensed California attorney.
