When you're involved in an accident and suffer injuries, it's natural to wonder how much compensation you're entitled to. Many people assume that the at-fault driver's insurance policy limit is the maximum they can receive, but that's not always the case. While insurance policies impose limits, there are other ways to pursue additional compensation. Knowing your options is essential to securing the financial recovery you need.

A recent encounter with a client highlighted the common misunderstandings surrounding claim valuation. She believed, based on a ChatGPT search, that her claim was worth $2.5 million. However, the defendant's policy limit was substantially less, and he didn't seem to have any significant assets. While it's crucial to understand what damages you may be entitled to, it's equally important to recognize the real-world limitations of actually collecting that money.

So, how do you determine the real maximum value of your claim? The first step is to explore what compensation sources are available beyond just the insurance coverage of the at-fault party. If your damages exceed the defendant's policy limits, you may have other options to seek additional compensation.

One possibility is pursuing the defendant's personal assets. If they own real estate, have savings, or other valuable holdings, a court may allow you to collect from those resources. However, collecting from personal assets is often difficult, particularly if the defendant doesn't have substantial wealth. If they have limited financial resources, there may be little beyond their insurance policy to recover.

Another option is wage garnishment. If the defendant is employed and unable to pay the full judgment amount, a court may allow you to recover a portion of their wages over time. While this can be a slow process, it does provide a way to secure compensation beyond insurance policy limits.

Your own insurance policy may also serve as a source of compensation. If you carry uninsured or underinsured motorist coverage, your insurer may cover the difference between what you are owed and what the at-fault party's insurance can pay. This type of coverage can be particularly valuable when dealing with drivers who have minimal insurance.

In some cases, defendants have additional coverage through umbrella policies. These policies extend beyond standard auto insurance and can significantly increase the available compensation. If the at-fault driver carries an umbrella policy, it could provide the additional funds needed to cover your damages.

There are also situations where multiple parties may share liability for an accident. For example, if a defective car part contributed to the crash, the vehicle manufacturer may be held accountable. If poor road conditions played a role, a government agency or contractor might be liable. If the at-fault driver was working at the time of the accident, their employer could also be responsible for the damages. Identifying all potential sources of liability can improve your chances of obtaining full compensation.

Although recovering compensation beyond policy limits is possible, it is not common. Courts consider several factors before awarding additional damages, such as whether the defendant has the means to pay or whether the insurance company acted in bad faith. If the at-fault party lacks the resources to pay beyond their policy limit, it may not be practical to pursue additional compensation.

One of the most powerful ways to recover more than an insurance policy limit is through an insurance bad faith claim. Insurers have a legal duty to act in good faith when handling claims. If an insurance company fails to settle a claim within policy limits when it reasonably should, it can be held responsible for the full judgment amount, even if it exceeds the original policy coverage.

An example from our own legal experience demonstrates just how significant a bad faith claim can be. In the case of Aguilar v. Gostischef, our client suffered severe injuries in a crash, and the at-fault driver's insurance policy had a limit of $100,000. We knew that the injuries warranted much higher compensation—$507,718 in damages—but despite multiple timely settlement demands, the insurance company refused to respond. Their failure to act in good faith forced us to take the case to trial, where the court awarded our client a staggering $2.3 million, far exceeding the original policy limit. Because the insurer failed in its duty to handle the claim fairly, it was held responsible for the entire amount. This case serves as a clear warning to insurers: neglecting their responsibilities can have severe financial consequences.

Many assume that an insurance policy's limit is a strict ceiling, but that's not always the case. Depending on the circumstances, there are multiple ways to pursue additional compensation. However, it's important to remain realistic. If the at-fault party has no assets, no umbrella policy, and no other liable parties are involved, your compensation may ultimately be limited to the insurance policy's maximum payout.

This is why consulting an experienced personal injury attorney is so crucial. A skilled lawyer can assess your case, identify all potential sources of compensation, and ensure that no opportunities for recovery are overlooked. An attorney can also determine whether an insurance company has acted in bad faith, which could lead to a much higher settlement than initially expected.

Get Legal Help for an Accident That Exceeds Policy Limits

Williams, Brown & Williams P.C. is a premier law firm in California that has recovered millions for clients, including victims of car accidents. If your damages may exceed policy limits, there are steps you can take, but they are often technical and complex.

Work with a legal team that has a 99% success rate. Let us pursue all avenues for your compensation when you need to recover more than the auto insurance policy limits. Contact us online or call our offices today.