How Often Do Auto Accident Settlements Exceed the Policy Limits in California
The injured party in an auto accident must deal with damages to or the total loss of their vehicle.
You might be wondering if car accident settlements can exceed policy limits.
In more severe accidents, injured parties can have physical injuries to contend with and related medical costs, and lost wages.
They also face the burden of filing claims and dealing with insurance policies to recover damages due to them.
Fortunately, the driver causing the accident usually has insurance.
Also, insurance companies overwhelmingly settle these claims.
However, the settlements generally will not exceed policy limits.
Therefore, the injured driver has additional challenges if their auto accident settlement exceeds the policy limits.
Insurance Policies and Limits
The law mandates that drivers have automobile insurance.
These policies have requirements for specific amounts. For instance, California requires drivers to carry at least the following auto insurance coverage:
- Bodily injury liability coverage of $15,000 per person/$30,000 per accident minimum;
- Property damage liability coverage of $5,000 minimum; and
- Uninsured motorist bodily injury coverage of $15,000 per person/$30,000 per accident minimum.
The driver who causes injuries should at least have the coverage above. Some drivers have policies over these amounts.
The coverage they have is most often the maximum settlement amount their insurance company will offer an injured driver.
Impact of Policy Limits
Insurance companies are required to negotiate in good faith with an injured person and take into account all the details of the case. The long-accepted industry standard is that a fair settlement to a claim is up to, but not above, the policy amount.
The point of insurance is to cover claims. Companies do not intend to pay beyond the policy. Settlements for policy amounts are usually accepted. Only about 2% of the small number of major motor vehicle lawsuits that get filed in California go to trial.
Options for Suing Beyond Policy Limits
The first step the injured party should take is to hire a lawyer. An experienced personal injury and auto accident attorney can review all claims, policies, and settlement offers relating to an accident. Although it may be difficult to obtain an auto accident settlement that exceeds the policy limits of insurance companies, there are a few options.
Suing the Insurance Company for Failing to Act in Good Faith
When an insurance company refuses to settle for the policy limit where the damages clearly exceed the policy limits, they may be subject to a bad faith claim. If the case later goes to court and a jury awards damages in excess of the policy limit, the insurance company may be on the hook for the whole amount.
Suing the At-Fault Driver Personally
If your claim exceeds policy limits, you may seek to ultimately sue the driver at fault for additional damages not covered by the policy limits. Whether you should take this approach rather than settling for the policy limits will depend on whether the at-fault driver has assets from which you could collect a judgment.
Suing Other At-Fault Parties
If more than one party was responsible for your accident, you may be able to collect damages under more than one insurance policy.
An attorney can help you identify other potentially responsible parties.
Contact the Attorneys at Startpoint, LC
Starpoint LC, Attorneys at Law, is a boutique personal injury law firm serving Los Angeles and its surrounding areas.
For your injury case, Starpoint Law will always provide the highest quality legal services. Contact Starpoint Law or call us at 310-424-9971 today.
Rob Clark2022-07-11Great people. Good lawyers and legal aids. They will work diligently for youAdam S2022-06-18Aidin at Starpoint helped guide me through initial consultations and boost my morale. Although I managed to settle the disagreement quickly on my own behalf, thank God, Aidin was my first choice of defense. Aidin was knowledgeable and confident about several laws and methods to respond to the specific complaints that could turn the situation around and work in our favour!Riche' Navarette2022-06-07I’d like to take this moment to thank Aidin, Eva, Marisol, and all the others that worked hard at this law firm while working on my case. They are excellent! It is a difficult thing to experience once you get to a point in any matter that attorneys have to get involved. They made this process comfortable. Aidin had been thorough from day one. He made everything make sense to me and there were no surprises when my case was closed. Eva was professional and friendly. Highly recommend them! Thank you Starpoint for making me feel confident in your team from the very beginning.Denise Garcia2020-10-13Aidin is an amazing lawyer! I highly recommend Star point to anyone looking for a law firm that will help you get the best you deserve...Farzad Arani Badee2020-08-13I was involved in a car accident last May 2019. I reached out to Starpoint law firm and my attorney John Vafa Handled my case very strongly. In less than a year My case settled for 750,000 dollars. Thank you so much Starpoint law for being so kind, caring and strong. I recommend Starrpoint law firm and attorney John Vafa to everyone if they want to get a good result and get what they deserve after any kind of accident.martha hidalgo2020-08-12I am absolutely astonished by the service. Meeting the lawyer Aidan, it was the best that had happened in my life. He was the only lawyer te hat had faith in my case and thanks to him and John, I can feel better about myself after the accident. They are very professional, but apart from that they are such great human beings. I would definitely recommend them!Virginia Roybal2020-08-06Very quick to answer any questions, took care of our case very quickly. Highly recommend.KA-Audio2020-08-05Paymon John Vafa is in my opinion a great lawyer. He’s done a pretty amazing job on my case. I’m very grateful and wish him well.Emilia Cotto2020-08-05I like they professional way they take my case recommend very a professional business.Mehran Shei2020-08-05I really appreciate having starpoint attorneys on my side during my legal issues on several occasions. They were very professional, hardworking, caring at all time.. Mehran
Aidin Ghavimi
Aidin is a partner at Starpoint LC, Attorneys at Law, and focuses on personal injury and employment law cases in and around Southern California. He earned his Juris Doctorate from the Loyola School of Law and his Bachelor’s from USC. Aidin’s primary goal is to bring justice to his clients and to ensure they are able to move on with their lives after a serious injury.
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