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495+Being injured in a serious car accident is overwhelming enough without worrying about whether there’s enough insurance to cover your damages. You’re dealing with injuries, medical bills, and lost wages, only to discover the at-fault driver’s insurance policy limits aren’t enough to cover what you’ve lost. This situation happens more often than you might think, and it can leave you wondering where you’ll get the compensation you need to recover.
When accident damage exceeds car insurance coverage, you’re not out of options. You have legal rights, and there are ways to pursue the full compensation you deserve. Founded by Jeff Fayngor to fight for injured victims, our experienced Riverside car accident lawyers at The JLF Firm stand up to insurance companies when they try to undervalue claims or insist that injuries are not severe enough for compensation.
Understanding California Auto Insurance Policy Limits
California requires all drivers to carry minimum liability insurance, but these minimums often fall far short of covering serious accident damages. As of January 1, 2025, California increased its minimum requirements for the first time since 1967. Under the new law, drivers must maintain at least $30,000 per person for bodily injury, $60,000 per accident for multiple injuries, and $15,000 for property damage.
However, many California drivers may still be operating under the old minimums of $15,000 per person, $30,000 per accident, and $5,000 for property damage if their policies haven’t been recently renewed. In serious car accidents, both policies rarely cover actual losses.
A single emergency room visit can easily exceed $15,000, and the new $30,000 minimum barely covers moderate injuries. If you need surgery, ongoing medical treatment, or face permanent injuries, your damages can quickly reach six or seven figures. Meanwhile, the at-fault driver may only carry these bare minimum coverage amounts.
Insurers know their policy limits before you even file your claim. They calculate exactly how much they’ll pay, regardless of how much you’ve actually lost. Having experienced attorneys on your side makes all the difference. Our team at The JLF Firm has recovered millions for injured clients throughout California, including cases where we had to look beyond the at-fault driver’s inadequate coverage.
What Happens When Accident Damage Exceeds Car Insurance Coverage
When your damages exceed the at-fault driver’s coverage limits, several things typically happen. First, the insurer will likely offer you the full policy limits, hoping you’ll accept it quickly and walk away. They present this as their “best and final offer,” even though they know it doesn’t cover your actual losses.
Insurance adjusters are trained to make you feel like policy limits are a hard ceiling you can’t get past. They’ll tell you that’s all the coverage available and suggest you should be grateful to get it. What you’re seeing here are their true priorities. They’re not concerned with making you whole. They want to settle your claim for as little as possible.
Before you accept any settlement offer, even one for full policy limits, you need to understand all your options for recovering additional compensation. The JLF Firm’s experienced attorneys and legal assistants investigate every potential source of recovery in your case. We don’t just accept that coverage limits are inadequate and walk away. We go the extra mile to find every dollar you’re entitled to.
Your Options When Policy Limits Are Not Enough to Cover Your Damages
California law provides several avenues for pursuing compensation beyond an inadequate insurance policy. You need to understand these options to protect your financial recovery.
Underinsured Motorist Coverage (UIM)
One option is underinsured motorist (UIM) coverage on your own policy. If you carry this coverage, it can provide additional compensation when the at-fault driver’s limits aren’t enough. UIM coverage is designed specifically for this situation. It kicks in after you’ve exhausted the at-fault driver’s policy limits and pays the difference between what you received and what you’re actually owed, up to your UIM coverage amounts. Many people don’t realize they have this protection or don’t understand how to properly make a UIM claim. Insurers, including your own company, may try to minimize or deny UIM claims. Our attorneys know how to maximize your UIM recovery and hold your insurance company accountable when they try to underpay.
At-Fault Driver’s Personal Assets
You can also pursue the at-fault driver’s personal assets to cover damages beyond their insurance limits. This means filing a lawsuit against the driver personally and obtaining a judgment for your full damages. If the driver has assets like real estate, savings, investments, or other property, you may be able to collect additional compensation through those assets. However, pursuing personal assets is only worthwhile if the at-fault driver actually has recoverable assets. Many drivers who carry only minimum insurance don’t have significant assets to pursue. Our team conducts thorough asset investigations to determine whether this option makes sense in your case.
Third-Party Liability
In some accidents, more than one party shares fault. If another driver, a vehicle manufacturer, a government entity responsible for road maintenance, or another party contributed to your accident, you may have additional claims. Each potentially liable party represents another source of coverage and compensation. The JLF Firm investigates every aspect of your accident to identify all potentially responsible parties. We’ve recovered money from multiple sources in complex cases, significantly increasing our clients’ total recovery. We don’t stop at the obvious. We look deeper to find every party whose negligence contributed to your injuries.
Sometimes other policies beyond standard auto liability coverage come into play. Commercial umbrella policies, business auto coverage, or other types may provide additional money depending on the circumstances of your accident. Finding these policies takes thorough investigation and experience with complex insurance matters.
How Insurance Companies Handle Claims That Exceed Policy Limits
Insurers approach claims differently when damages clearly exceed their coverage amounts. Understanding their tactics helps you protect your rights and maximize your recovery.
When accident damage exceeds car insurance limits, adjusters often rush to settle claims. They’ll present the policy limits as their “best offer” and pressure you to accept quickly before you fully understand the extent of your injuries or explore other recovery options. They know that once you sign a release, you give up your right to pursue additional compensation.
Some companies engage in bad-faith practices when handling claims at or near policy limits. They may unreasonably delay settlement, fail to properly investigate damages, or refuse to tender policy limits when liability is clear. When insurers act in bad faith, they can become personally liable for damages beyond their coverage amounts.
The insurance industry also relies on injured people not understanding their rights or not having legal representation. They’re counting on you to accept policy limits without questioning whether other coverage exists.
Jeff Fayngor founded The JLF Firm after seeing too many people told they weren’t hurt enough or their losses weren’t valuable enough to warrant fair compensation. Our mission is to hold insurance companies accountable when they try to shortchange injured victims.
How The JLF Firm Helps When Insurance Coverage Isn’t Enough
Our team has extensive experience handling cases where damages exceed coverage limits. We’ve recovered millions for injured clients throughout California, including cases where we identified multiple sources of compensation others missed. Our results include a $3 million recovery in an auto accident case, $1.27 million in another car accident, and $1.25 million in a motorcycle collision case.
*Past results do not guarantee future outcomes.* Every case is different. But these results demonstrate that we know how to maximize recovery in serious injury cases. We don’t accept inadequate limits as the final answer. We investigate, we fight, and we pursue every available dollar.
When you work with The JLF Firm, our full-service team handles your case from start to finish. We investigate all insurance policies, identify all potentially liable parties, properly document your damages, and negotiate aggressively with insurers. If they won’t pay fairly, we’re prepared to take your case to trial. Our experienced attorneys and legal assistants work together to give you the comprehensive service you need.
With offices in Pomona, San Bernardino, Riverside, El Monte, and Downey, we serve injured clients throughout Southern California. We work on a contingency fee basis, which means no fee unless we win. Your consultation is completely free.
If you’re facing a situation where the at-fault driver’s insurance isn’t enough to cover your damages, don’t accept less than you deserve. Call us today for a free consultation. We’ll review your case, explain all your options, and fight to recover every dollar you’re entitled to.
Frequently Asked Questions About Car Accident Claims Exceeding Insurance Limits
How often do auto accident settlements exceed the policy limits?
Serious injury cases frequently exceed minimum coverage amounts. Given that many California drivers still carry the old minimum of $15,000 per person or the new minimum of $30,000 per person (depending on when their policy is renewed), even moderate injuries can surpass these limits. Cases involving severe injuries, permanent disability, extensive medical treatment, or significant lost income regularly exceed available coverage. The severity of your injuries and the at-fault driver’s insurance determine whether your case exceeds their limits.
What if the at-fault driver only has minimum insurance coverage?
If the at-fault driver carries only California’s minimum required insurance, you can still pursue compensation through your own underinsured motorist coverage if you have it, by going after the driver’s personal assets or by identifying other liable parties. Our attorneys investigate every potential source of recovery. Even when the at-fault driver has minimal coverage, we often find additional ways to maximize your compensation.
Can I negotiate with the insurance company for more than the policy limits?
Insurers cannot pay more than their policy limits except in rare bad-faith situations. The coverage limit represents the maximum the company is contractually obligated to pay. However, you can pursue additional compensation through other sources. Having experienced legal representation matters because we know where to look for additional coverage and how to maximize your total recovery.
Should I accept a policy limits offer right away?
Don’t accept any settlement offer, even one for full policy limits, without first consulting with an attorney. Once you sign a release, you typically give up your right to pursue any additional compensation. Before accepting, you need to understand whether other coverage exists, whether you have a viable underinsured motorist claim, and whether pursuing the at-fault driver’s personal assets makes sense. Our free consultation helps you understand your full options before making any decisions.
What is underinsured motorist coverage, and do I need it?
Underinsured motorist coverage protects you when the at-fault driver’s insurance isn’t enough to cover your damages. It pays the difference between what you receive from the at-fault driver’s policy and your actual damages, up to your UIM coverage amounts. Given how many California drivers carry only minimum coverage, UIM protection is critical. If you don’t currently have it, consider adding it to your policy.
How long do I have to file a car accident claim in California?
Under California Code of Civil Procedure Section 335.1, the statute of limitations for personal injury claims is generally two years from the date of the accident. However, there are some exceptions.
- Claims involving government entities typically require an administrative claim to be filed within six months of the accident, which is significantly shorter than the standard deadline.
- For minors, the statute of limitations is usually tolled until the child turns 18, giving them two years from their 18th birthday to file a claim.
- The discovery rule may apply when an injury is not immediately apparent, allowing the filing deadline to begin when the injured person knew, or reasonably should have known, that the injury was caused by the accident.
Evidence disappears, witnesses’ memories fade, and insurance companies start building their defense immediately. The sooner we start investigating your case, identifying all coverage sources, and documenting your damages, the stronger your claim becomes.
What damages can I recover beyond medical bills?
When accident damage exceeds car insurance limits, you’re entitled to compensation for all your losses. This includes past and future medical expenses, lost wages and lost earning capacity, pain and suffering, emotional distress, loss of enjoyment of life, and property damage. In cases involving catastrophic injuries, your damages can be substantial. Our team works with medical professionals, economists, and other specialists to fully document all your damages and ensure you’re seeking the maximum compensation you deserve.
Schedule a Free Consultation With Our California Car Accident Lawyer Today
Don’t let inadequate insurance limits stand between you and the compensation you need to recover. The JLF Firm stands up to insurance companies that try to tell you you’re not hurt enough, or your losses aren’t valuable enough for fair compensation. Call 888-341-3071 for your free consultation. We’re available to discuss your case and explain how we can help you pursue the full compensation you deserve.
