How Often Do Auto Accident Settlements Exceed the Policy Limits?

After a car accident, one of the first things people ask is, “Will insurance cover everything?” This is a fair and crucial question, as medical expenses, car repairs, and lost wages can add up quickly. Most drivers rely on insurance to pay for these costs. But what happens when the damage is more than the insurance coverage allows? Can your settlement go beyond the insurance policy limits?

Furthermore, if your injuries are severe or the other driver has very low coverage, you may find yourself facing significant bills or losses that go far beyond what their insurance will pay. In this article, we’ll explain what policy limits are, how often settlements exceed them, and what you can do if your damages are greater than the insurance coverage available. In addition, we will show how car accident lawsuit loans from High Rise Financial can help you stay financially stable while your case is pending.

What Are Auto Insurance Policy Limits?

Auto insurance policy limits are the maximum amounts an insurance company will pay for damages after an accident. These limits are set when you purchase a policy. The insurance policy usually includes two main parts:

• Bodily injury coverage: This pays for medical expenses, lost wages, and other costs related to injuries. It’s often listed as a per-person and per-accident limit.
• Property damage coverage: This pays for damage to vehicles, buildings, or other property.

For example, a policy might have $50,000 in bodily injury coverage per person and $100,000 per accident. If your medical bills are $75,000, the insurance company may only pay $50,000. Thus, leaving you with a $25,000 gap.

Can a Settlement Go Beyond the At-Fault Driver’s Insurance Limits?

Yes, it is possible for a settlement to go beyond the policy limits, but it doesn’t happen often. Insurance companies are only required to pay up to the limit stated in the policy. Anything beyond that must come from other sources.

In some cases, your attorney may negotiate with the insurance company to pay more than the limit, especially if they acted in bad faith or delayed the claim. Other times, you may be able to sue the driver personally or look for other types of coverage, like umbrella policies or employer liability, if the driver was working at the time of the crash.

How Often Do Settlements Exceed Policy Limits?

Settlements that go beyond policy limits are rare, but they do happen, especially in serious injury cases. If the accident caused permanent disability, long-term medical care, or major financial loss, the damages may be much higher than the insurance coverage. 

Therefore, whether your settlement exceeds the policy limit depends on several factors:

• The severity or seriousness of your bodily injuries.
• The total cost of medical care and lost income.
• Whether the at-fault driver has personal assets
• If other parties (like employers or vehicle owners) share responsibility
• The skill and strategy of your attorney.

If your case is strong and the damages are clear, your lawyer may be able to push for a higher payout, even if it means going beyond the insurance coverage.

What Happens If My Damages Are Greater Than the Policy Limits?

If your damages are more than the policy limits, you still have options. Here are some possible legal options that your attorney may explore:

• Sue the driver personally: If the driver has assets like property or savings, you may be able to recover additional compensation through a personal lawsuit.
• Look for umbrella coverage: Some people carry extra insurance called umbrella policies. These can provide more coverage beyond the standard auto policy.
• Use your own insurance policy: If you have Uninsured/Underinsured Motorist Coverage, your own policy may help cover your medical expenses, damages, and other losses if you’re hit by an uninsured or underinsured driver.
• Negotiate with the insurer: In some cases, your lawyer may argue that the insurance company should pay more due to delays or bad faith handling of the claim.
• Explore third-party liability: If the driver was working or driving someone else’s car, other parties may be responsible and have additional coverage.

Your attorney will look at every angle to make sure you get the maximum possible financial compensation to cover your damages and losses.

Can I Still Get a Car Accident Lawsuit Loan If the Policy Limits Are Low?

Yes, you can still qualify for a car accident lawsuit loan even if the at-fault driver’s insurance coverage limits are low. While low policy limits generally affect how much the insurance company is willing to pay, they don’t automatically reduce the value of your case. What matters most is the strength of your legal claim, the severity of your injuries, and the likelihood of a successful outcome. If your attorney believes your case has merit and is pursuing compensation beyond the policy limits, you may still be eligible for pre-settlement funding.

Additionally, personal injury lawsuit loans are designed to support accident victims during the long wait for a settlement. They’re not based on your credit score, income, or employment status. Instead, they’re based on the merits and facts of your case. Even if the available insurance is low, your attorney may be seeking compensation from other sources, such as personal assets, umbrella policies, or third-party liability. With this, you can qualify for a lawsuit cash advance to help cover your bills and living expenses.

How Can Car Accident Lawsuit Loans Help You When Insurance Isn’t Enough?

When insurance falls short and you decide to file a lawsuit against the at-fault party, lawsuit loans can help bridge the gap. These non-recourse cash advances give you access to money now, so you don’t have to wait for your case to settle. You can use the car accident loans to:

• Pay for medical bills, hospital visits, therapy, medications, and follow-up care.
• Cover lost wages if you can’t work because of your injuries.
• Cover daily expenses, such as rent, food, utilities, groceries, childcare, and transportation.
• Pay legal costs, court fees, document requests, or expert consultations.
• Avoid borrowing high-interest loans or debt.

With adequate financial support from pre-settlement loans, you can achieve financial relief during such a difficult period. Also, your attorney will have enough time and leverage to fight for a fair settlement.

Turn to High Rise Financial For Risk-Free Car Accident Lawsuit Loans Today

If your accident settlement may exceed the policy limits and you need financial support while your case is pending, High Rise Financial is here to help. Call us at (866) 407-6404 to learn more about our legal funding options. We offer fast, risk-free lawsuit loans to support accident victims and claimants. Our reliable experts can walk you through the application process and help you navigate crucial decisions.