Accidents Exceeding Policy Limits

Accidents resulting in damages (e.g., medical bills, lost income, etc.) that exceed the at-fault party’s insurance policy limits present complex challenges for victims seeking full compensation. However, you have several options available to you. 

Seeking Compensation Beyond Policy Limits

When damages exceed the at-fault driver’s insurance limits, you may be able to pursue additional compensation in the following ways:

Personal Assets of the At-Fault Driver

Victims can file a lawsuit against the at-fault driver to seek compensation from their personal assets. However, this approach may be impractical if the driver lacks sufficient assets to cover the excess damages.

Underinsured Motorist Coverage (UIM)

If you carry UIM as part of your own insurance policy, you can file a claim with your insurer to cover the difference between the at-fault driver’s policy limits and the total damages. California law requires insurance companies to offer UIM coverage, but policyholders can reject it in writing.

Umbrella Policies

Some drivers have umbrella insurance policies that provide additional liability coverage beyond standard policy limits. Identifying such policies can open avenues for additional compensation.

What are California’s Minimum Insurance Requirements?

California mandates that drivers carry the following minimum liability insurance to cover damages in the event of an accident:

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

In accidents causing severe injuries or significant property damage, these amounts may be insufficient to cover the total losses.

California Laws on Insurer’s Duty to Settle

In California, insurers have a duty to act in good faith and settle claims within policy limits when liability is clear and damages exceed those limits. Failure to do so can expose the insurer to liability beyond the policy limits in a bad faith claim. This principle is established in case law, such as Comunale v. Traders & General Insurance Co., 50 Cal.2d 654 (1958), where the court held that an insurer’s unreasonable refusal to settle makes it liable for the entire judgment, including amounts exceeding policy limits.

How an Attorney Can Assist in Claims Exceeding Policy Limits

An experienced Beaumont car accident lawyer can provide invaluable assistance navigating claims that surpass policy limits. For instance, they can:

Identify Additional Coverage

Attorneys can investigate whether the at-fault driver has umbrella policies or other assets that can be targeted to satisfy the excess judgment.

Pursue an Underinsured Motorist Claim

If applicable, an attorney can help file a UIM claim in Beaumont with your insurer and negotiate for a fair settlement.

Litigate Bad Faith Claims

If the insurer unreasonably refuses to settle within policy limits, an attorney can file a bad faith lawsuit to hold them liable.

Negotiate Medical Liens

Attorneys can negotiate with medical providers to reduce liens, ensuring that a larger portion of the settlement goes to you.

Providing Legal Representation

In cases where litigation is necessary, a Beaumont personal injury attorney can represent you in court to secure the maximum possible compensation.

To discuss your case today in a free consultation, call Hanson & Mouri at (951) 688-0006 or message us online.