When and how auto accident settlements can exceed insurance policy limits

When you’re involved in an auto accident caused by a negligent driver, you must pursue compensation by filing an auto insurance claim. If you sustained life-changing injuries, can't return to work, and suffered other damages, the damages you’re seeking may exceed the other driver’s insurance policy limits. A car accident lawyer can help you pursue additional damages by filing a lawsuit against the negligent party.

What Are the Minimum Liability Insurance Requirements in California?

In California, the minimum liability insurance requirements for all drivers include:

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

What is a Policy Limit? 

An auto insurance policy limit is a coverage limit. When another driver is negligent and their negligence results in an auto accident, their insurer is required to pay up to the coverage limit. However, this doesn’t mean that you’ll only be able to recover the amount of the policy limit. If the other driver’s policy doesn’t cover all of your damages, you can also file a lawsuit against the other driver.

Can I File a Lawsuit Against the Negligent Driver? 

If you were severely injured in the accident, your car accident lawyer can help you explore all avenues of compensation. If your damages exceed the other driver’s policy limits, your attorney can file a personal injury lawsuit on your behalf. However, it may not make financial sense to file a lawsuit if the other party does not have the financial means to pay you.

Can I File a Lawsuit Against the Other Driver’s Insurer? 

You may be able to file a lawsuit against the insurance company if they refuse to offer you a fair settlement. If your case goes to trial and you win an award that exceeds the available policy limits, the insurance provider may be held responsible for paying the entire amount.

Should I Hire a Car Accident Lawyer to Handle My Case?

You don’t have to hire a car accident lawyer to file your claim or lawsuit. However, if you were severely injured, an attorney can build a strong case that holds the negligent driver and their insurance company responsible for your damages. They can negotiate with the insurance company and help you recover maximum compensation for your medical bills, pain and suffering,  and other losses. If your damages exceed the policy’s limits they can also file a lawsuit on your behalf to help you recover the award you deserve after a motor vehicle collision caused by the negligence of another.

Contact Us Today 

If you were involved in an auto accident that was caused by a negligent motorist, contact the auto accident lawyers at MVP Accident Attorneys today to schedule a free, no-obligation consultation. Our accident attorneys have extensive experience handling complex auto accident claims and know how to build a strong case that can help you recover compensation for your medical bills, lost wages, property damage, and more.