What Happens if Accident Damage Exceeds Your Car Insurance?

Car accidents produce a range of injuries and property damage. Fault for these accidents may fall on another driver, possibly an unidentified driver if the accident is a hit-and-run, or be shared among multiple parties. If you are involved in a more serious accident, your injuries, property damage, and other related losses are likely to be costly and may exceed the value of the auto-insurance policies responsible for covering those losses.

There are a variety of possibilities, and the team at Venerable Law can help you sort through the options. We will also work with the insurance companies or other involved parties in an effort to secure the compensation you need. You can count on A Los Angeles car accident lawyer from our firm to find the best possible solution to your insurance situation and can quickly answer your questions through our convenient ClaimTrack client portal. 

California’s Car Insurance Requirements

All California drivers must carry the State’s minimum car insurance policies. They must carry proof of insurance and present it upon request by law enforcement officers when registering a vehicle and after involvement in an accident. The California Department of Motor Vehicles (DMV) establishes the current following minimum liability insurance requirements:

• $15,000 for injury or death of one person
• $30,000 for injury or death of multiple people
• $5,000 for property damage

• For those eligible for California’s low-cost auto insurance program, liability coverage includes a $10,000, $20,000, $3,000 breakdown

New financial responsibility requirements become effective January 1, 2025:

• $30,000 for injury or death of one person
• $60,000 for injury or death of multiple people
• $15,000 for property damage

Current policy minimums are low, and medical costs, lost wages, and other expenses can easily exceed their values. Even with the January 2025 increase, the needs of victims of life-changing injuries will not be covered, especially if when multiple victims sustain injury and seek coverage from an at-fault party’s policy.  However, there are other possible avenues for compensation, and a skilled car insurance attorney in Los Angeles can help you pursue them.

Options When Your Claim Exceeds Policy Amounts

California gives victims of car accidents or other injury-causing events the right to sue the at-fault party for compensation. Your attorney will review your case carefully to see where the fault rests. Your attorney will also review your own insurance policy to see what compensation options exist there.

The At-Fault Driver’s Personal Assets

If the driver culpable for the accident only has minimum policy coverage, and your damages exceed that amount, you can sue the driver’s personal assets. The problem is that the driver might not have any assets to seize. Drivers carrying minimum insurance policies are not typically wealthy, and even if you win your case, you may not see any additional compensation.

Your attorney will also look into other insurance policies the driver may have. For example, umbrella policies cover home, auto, and other liability claims. You may be able to tap into that policy to cover expenses exceeding the auto policy. 

Those Responsible for Vehicle Safety

There are often layers to fault. The at-fault driver may have only caused the accident because of defects in the vehicle’s braking, steering, or other systems. In cases where a vehicle defect or malfunction led to the event, you may have grounds to hold other parties accountable, such as the:

• Vehicle manufacturer
• A part manufacturer or installer
• Inspectors who failed to notice the defect
• Mechanics who failed to properly repair the defect

Employers

If your accident is caused by an on-the-job driver, you might be able to hold that driver’s employer responsible for damages. Delivery drivers, large or semi-truck operators, construction vehicle operators, or even office workers traveling for business are acting on behalf of an employer or company. Usually, businesses have more substantial insurance policies than individual drivers.

Accidents with rideshare vehicles have become more common. Rideshare companies have insurance structures in place, and different coverage applies depending on how and when the accident happened. Your Los Angeles Uber, Lyft, and taxi accident lawyer will investigate that insurance structure to see what applies to your case.

A Government Office

Though holding a government entity accountable is more complicated than suing a private individual or company, some situations warrant a government-focused claim. The team at Venerable Law is equipped to meet that challenge. If poor road conditions or inoperative traffic signals cause your accident, the government agencies responsible for maintaining those elements may hold fault.

Your Insurance Policy

Though not required by the State, you may have included uninsured motorist coverage (UMC) or underinsured motorist coverage (UIM) in your auto insurance package. In fact, unless you waive the options, they are automatically included in California policies. Because insurance companies are businesses, even your own representatives will look to keep their payouts as low as possible, but your car accident lawyer in Los Angeles will handle communication with your company to ensure they uphold the terms of your policy.

Filing a “Bad Faith” Lawsuit

California law establishes rules for governing insurance. Insurance companies must act in “good faith” toward those filing a claim–their own clients or third parties. Many insurance companies uphold this responsibility, but unfortunately, some do not. 

“Bad Faith” behavior includes stall tactics to delay claims, attempts to settle claims for less than they deserve, misrepresentation of policy information, failure to provide rationales for a claim denial or settlement offer, discrimination against claimants, and other unsavory maneuvers. Venerable Law is not intimidated when insurance companies fight to pay claims and have the knowledge and experience to hold them accountable. We are ready to fight bad-faith strategies that deny you fair compensation. 

Put Your Insurance Challenges in Our Hands

California demands drivers carry insurance, but often, those policies are not enough to compensate injured victims fully. The stress that comes from an accident and subsequent injuries is compounded and intensified by insurance disputes and limitations.

Do not bring that stress into your recovery. Instead, put your insurance challenges in the hands of an experienced, strategic Los Angeles car accident lawyer from Venerable Law.