Policy limits play a significant role in determining the amount you can recover in a Calabasas car accident settlement. Here’s a breakdown of how they impact your case:

1. What Are Policy Limits?

Policy limits refer to the maximum amount an insurance company will pay under a specific policy for a covered claim. In car accident cases, these limits are set by the at-fault driver’s liability insurance policy and may include:

• Bodily Injury Liability: Covers medical expenses, lost wages, and pain and suffering for injured parties. For example, a policy might have limits of $15,000 per person and $30,000 per accident.
• Property Damage Liability: Covers damage to vehicles and other property, such as fences or buildings. A typical limit might be $5,000 or $10,000.

California requires drivers to carry minimum liability insurance, but these minimums are often insufficient to cover serious accidents.

2. How Policy Limits Affect Your Settlement

The at-fault driver’s policy limits set a cap on how much their insurance company will pay, regardless of the actual damages you’ve suffered. Here’s how this works:

• If Damages Are Below Policy Limits: If your total damages (medical bills, property damage, etc.) are less than the at-fault driver’s policy limits, you can typically recover the full amount of your damages.
• If Damages Exceed Policy Limits: If your damages exceed the policy limits, the insurance company will only pay up to the policy’s maximum. You’ll need to explore other options to recover the remaining amount.

3. Options When Damages Exceed Policy Limits

If the at-fault driver’s insurance policy doesn’t fully cover your damages, you may have additional options:

Underinsured Motorist Coverage

If you have underinsured motorist (UIM) coverage as part of your own auto insurance policy, it can help cover the gap between the at-fault driver’s policy limits and your actual damages. For example:

• If the at-fault driver’s policy covers $15,000 and your damages are $50,000, your UIM coverage could pay the remaining $35,000 (up to your policy’s UIM limits).

Suing the At-Fault Driver

You can file a lawsuit against the at-fault driver to recover damages beyond their policy limits. However, this option is only viable if the driver has significant personal assets that can be used to satisfy a judgment.

Other Liable Parties

In some cases, other parties may share liability for the accident, such as:

• Employers (if the at-fault driver was working at the time of the accident)
• Vehicle manufacturers (if a defect contributed to the crash)
• Government entities (if poor road conditions played a role)

4. Importance of Legal Representation

An winning Calabasas car accident attorney can help you:

• Identify All Sources of Compensation: Including UIM coverage, additional liable parties, and other insurance policies.
• Negotiate with Insurers: To maximize your recovery within policy limits.
• Pursue Legal Action: If necessary, to recover damages beyond the policy limits.

Best Calabasas Car Accident Law Firm

Policy limits can significantly impact your Calabasas car accident settlement, especially in cases involving severe injuries or extensive property damage. Understanding your options and working with an experienced attorney at Walch Law can help you navigate these challenges and secure the compensation you deserve. Call now to set up your obligation-free consultation with Robert and Gary Walch now to learn about your options.