What If Your Car Accident Claim Is Worth More Than the Policy Limits?

Here is a hard fact about car insurance in the United States: the amount of coverage most drivers carry is far smaller than the cost of a serious injury. State minimum bodily injury limits are often $25,000 to $50,000 per person, and many drivers carry only the minimum. A hospital stay and surgery can pass that number in days.

When your claim is worth more than the policy limits of the at-fault driver, the limit often becomes the real ceiling on what their insurer will pay. But it is not always the end of the road. This guide explains how policy limits work, the places to look for more money, and the steps that protect you.

How policy limits work

Liability limits are usually written as three numbers, such as 25/50/25:

• $25,000 for bodily injury to one person
• $50,000 total for bodily injury to everyone in one accident
• $25,000 for property damage

The insurer generally will not pay more than those amounts for the at-fault driver, no matter how serious the injuries. If several people were hurt, they may have to share the per-accident limit.

Signs your claim may exceed the limits

• Surgery, a hospital stay or a fracture
• Months of treatment or future care
• Significant lost income or a lasting impairment
• Several injured people in one crash
• An at-fault driver with a minimum-limits policy

Our settlement calculator lets you enter the other driver's policy limit so the estimate does not show more than that policy can pay.

Step 1: Find out the actual limits

The other driver's insurer may not tell you the limits right away. In some states it must disclose them on written request, in others only in a lawsuit. Ask in writing early. Knowing the limit shapes everything else.

7 places to look for more money

1. Your own underinsured motorist coverage (UIM)

This is often the most important source. If you bought underinsured motorist coverage, your own insurer pays the difference when the at-fault driver's coverage is not enough, up to your UIM limit.

States handle this in two main ways:

• Excess (add-on) UIM: your UIM pays on top of the other driver's limit.
• Offset (reduction) UIM: your UIM limit is reduced by what the other driver's insurer paid.

Important: many policies require you to get your own insurer's consent before you settle with the at-fault driver's insurer. Settling without that consent can put your UIM claim at risk. Tell your insurer about any offer before you accept it.

2. Other drivers who share the fault

If another driver also contributed to the crash, their insurance may be available too.

3. The vehicle owner's policy

If the at-fault driver was borrowing someone else's car, the owner's policy may provide coverage, and the driver's own policy may add more.

4. An employer

If the driver was working at the time, for example making deliveries, the employer and its commercial policy may be responsible. Commercial policies usually have much higher limits.

5. An umbrella policy

Some drivers carry personal umbrella insurance that pays above their auto limits.

6. Your own MedPay or PIP

Medical payments coverage or personal injury protection pays some medical bills regardless of fault, which reduces how much of the limit is used up by bills.

7. The driver personally

You can sue the at-fault driver for the amount above the limits. In practice, most people do not have enough assets to collect from, and some assets are protected by law. A lawyer can check before you spend money on this.

The policy limits demand

In many states, when a claim is clearly worth more than the policy, the injured person or their lawyer sends a policy limits demand: an offer to settle for the full limit by a set deadline, with the evidence attached. If the insurer unreasonably refuses and a court later awards more than the limit, the insurer may in some states be responsible for the full judgment, under rules on insurer bad faith toward its own policyholder.

These demands have strict requirements that vary by state. They are one of the strongest reasons to involve a lawyer in a large claim. Our guide on whether you need a lawyer includes this situation in its checklist.

A worked example

Jordan's damages are estimated at $120,000. The at-fault driver has a $25,000 per person limit. Jordan has $100,000 in underinsured motorist coverage.

Source	Excess UIM state	Offset UIM state
At-fault driver's insurer	$25,000	$25,000
Jordan's UIM	Up to $95,000 more	Up to $75,000 more
Possible total	$120,000	$100,000

In the offset version, the UIM limit of $100,000 is reduced by the $25,000 already paid, so it can add only $75,000. Either way, the UIM coverage roughly quadruples or more what Jordan can recover. The UIM insurer will evaluate the claim itself, so Jordan will still need to document damages.

What fault does to the numbers

If you were partly at fault, the reduction is usually applied to your total damages, not to the limit. For example, $120,000 in damages with 20 percent fault becomes $96,000, which may still be well above a $25,000 policy. Our guide to comparative vs contributory negligence explains each state rule.

Protect yourself before you need it

The best time to deal with policy limits is before a crash. Check your own policy's underinsured and uninsured motorist limits. Many people carry the same amount as their liability coverage, which can be worth the cost given how many drivers carry minimum limits.

Keep the averages in perspective

Settlement averages you see online do not reflect how often policy limits cap claims. Our guide on the average car accident settlement explains why your own limits and damages matter more than any average.

Frequently asked questions

Can I get more than the policy limits in a car accident?

Possibly, through your own underinsured motorist coverage, other responsible parties, an employer, an umbrella policy, or the driver personally. In some states an insurer that unreasonably refuses a limits demand may owe more.

What happens if damages exceed the insurance coverage?

The at-fault driver’s insurer usually pays up to its limit. The rest may come from your own coverage or other parties, or you can pursue the driver personally.

What is underinsured motorist coverage?

Coverage on your own policy that pays when the at-fault driver’s insurance is not enough to cover your damages, up to your UIM limit.

Do I need my insurer's permission to settle with the at-fault driver?

Many policies require consent before you settle if you plan to make an underinsured motorist claim. Check with your insurer before accepting.

How do I find out the other driver's policy limits?

Ask their insurer in writing. Some states require disclosure on request, while others allow it only in a lawsuit.

Can I sue the at-fault driver for the rest?

Yes, but collecting depends on their assets, and many people do not have enough to pay a large judgment.