Can You Settle for More Than Auto Accident Policy Limits in California?

Can You Settle for More Than Auto Accident Policy Limits in California?
https://rtmlawfirm.com/can-you-settle-for-more-than-auto-accident-policy-limits-in-california/

A policy limit is the maximum amount an insurance company will pay for a covered loss under a policy.

In the context of car insurance, this includes liability coverage, which is the amount the insurer will pay to cover damages for which you are responsible in an accident.

California Policy Limits for Auto Accidents

The minimum liability insurance requirements are governed by the California Insurance Code Section 11580.1b. The state mandates minimum coverage amounts as follows:

$15,000 for injury/death to one person.
$30,000 for injury/death to more than one person.
$5,000 for damage to property.

These minimum limits are often not enough to cover the total damages resulting from a serious accident. Auto injury victims may incur significant medical expenses, lost income, and other costs far exceeding these amounts.

If Damages Exceed the Policy Limits, Can You Still File a Claim?

Yes, it is possible to claim compensation beyond the insurance coverage limits in certain circumstances. Here are some scenarios where accident settlements exceed the policy limits:

Personal Assets of the At-Fault Party

If the damages exceed the policy limits, the injured party can pursue a lawsuit against the at-fault driver for the remaining amount. This means that the at-fault driver’s personal assets could be used to cover the excess damages. However, this option is only viable if the at-fault driver has substantial assets.

Umbrella Policies
Some individuals carry umbrella insurance policies, which provide additional coverage beyond the limits of their standard auto insurance policy. These policies can provide an extra layer of financial protection and can be tapped into if the primary insurance limits are exceeded.

Multiple Insurance Policies
In some cases, there may be more than one insurance coverage policies that can be accessed. For example, if the at-fault driver was driving someone else’s car or a company car, both the driver’s personal insurance and the company’s automobile insurance might be liable for the damages.

Uninsured Motorist / Underinsured Motorist Coverage
If the at-fault driver’s insurance is insufficient to cover the damages, the injured party’s own insurance company may come into play if they have uninsured/underinsured motorist coverage. This type of coverage can pay for the excess damages up to the limits of the policy.

Product Liability Claims
If a defective vehicle or part contributed to the accident, the injured party might have a product liability claim against the manufacturer or seller of the defective product. This could provide another source of compensation beyond the at-fault driver’s insurance policy limits.

If Damages Exceed California Policy Limits, Get Help From Our Skilled Car Accident Lawyers.

RTM Law. Your Trusted Injury Attorneys.

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