Most accident victims believe that once the at-fault driver’s insurance coverage is exhausted, there is nothing more they can recover.
In reality, many serious auto accident claims exceed standard policy limits, leaving injured plaintiffs facing overwhelming medical costs and financial uncertainty.
The good news is that in California, there are ways to pursue maximum compensation for accident victims even when insurance coverage falls short.
Understanding when settlements exceed policy limits and exploring the right legal options can make the difference between partial recovery and full financial justice.
Understanding Policy Limits in Auto Accident Claims
Every auto insurance policy comes with coverage caps known as policy limits. These limits represent the maximum amount an insurance company will pay for injuries, property damage, or both after a car accident.
California requires minimum auto insurance coverage of:
- $15,000 for injury or death of one person
- $30,000 for injury or death of multiple people
- $5,000 for property damage
While these figures may cover minor collisions, they are far from sufficient in cases involving severe injuries.
For example, a personal injury claim that includes surgery, rehabilitation, and ongoing medical care can easily exceed $100,000. This gap leaves many victims wondering how to recover the rest.
When Do Settlements Exceed Policy Limits?
A settlement may go beyond insurance coverage in several common scenarios:
- Catastrophic injuries
Spinal cord injuries, traumatic brain injuries, or permanent disabilities often result in lifetime care costs far exceeding the available coverage. - Multiple victims
When more than one person is injured in the same crash, the limited coverage must be divided, reducing compensation for each plaintiff. - High medical costs combined with property damage
Rising healthcare expenses and vehicle replacement can quickly surpass policy caps.
In these situations, auto accident settlements frequently outpace insurance protection, requiring plaintiffs and attorneys to seek damages recovery from other sources.
Legal Options Beyond Insurance Coverage
When an accident victim’s damages surpass policy limits, there are several paths toward recovering more than insurance covers:
- Pursuing the defendant’s personal assets
If the at-fault driver has valuable property or savings, plaintiffs may sue beyond coverage to recover directly from those assets. - Third-party liability claims
Additional responsible parties may exist. For example, if the driver was on the job, the employer could share liability. If a vehicle defect contributed, a product manufacturer may be held accountable. - Bad faith insurance claims
If an insurer refuses to settle within the policy limits when liability is clear, they may be exposed to a lawsuit for acting in bad faith. This can expand recovery options for plaintiffs. - Underinsured motorist coverage
Many drivers carry their own underinsured motorist protection, which can be tapped when the defendant’s coverage runs out.
By leveraging these strategies, attorneys can help clients pursue larger settlement claims and ensure injury claim compensation reflects the true extent of damages.
The Role of Legal Funding in Extended Claims
While these strategies can unlock additional recovery, they often extend the timeline of litigation. Plaintiffs may wait months or even years before securing fair compensation. During this time, medical bills and living expenses can pile up, pressuring victims to settle early for less.
This is where legal funding plays a critical role. Through settlement funding or pre-settlement advances, plaintiffs can cover urgent expenses without giving up their right to pursue full justice. Legal funding allows victims to withstand insurance tactics and hold out for the fair value of their claim.
For many accident victims, this financial bridge can be the key to recovering maximum compensation for accident victims instead of accepting a lowball offer.
Practical Steps for Plaintiffs and Attorneys
For cases likely to exceed insurance policy limits, both plaintiffs and attorneys should take proactive measures:
- Retain experienced personal injury counsel who understands advanced litigation strategies.
- Document every expense and medical need to fully establish damages.
- Investigate all possible sources of recovery, from employers to product manufacturers.
- Explore legal funding solutions to avoid premature settlements caused by financial strain.
These steps not only strengthen the injury claim but also improve the chances of unlocking the highest possible compensation.
What You Should Know
Just because an insurance company sets a cap on policy limits does not mean victims are stuck with insufficient compensation. With the right legal strategies, plaintiffs can access legal options beyond insurance limits and pursue the justice they deserve.
At Fund Capital America, we provide lawsuit funding solutions to help accident victims stay financially stable while their attorneys fight for fair settlements.
If you are involved in an auto accident settlement and need support, explore how legal funding can give you the strength to secure the compensation you are entitled to.
Who is Fund Capital America?
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
Fund Capital America’s Services
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
- Pre Settlement Funding
- Policy Limits
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- Language Services
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- Medical Legal Finance
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- Law Firm Line of Credit
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