An auto accident in Sherman Oaks can leave an injured person facing medical expenses, lost income, property damage, and other losses. When an insurance company is involved, one of the important issues in a claim is the amount of insurance coverage available under the responsible driver’s policy.
Auto accident settlements can provide a way to resolve a dispute without going through a trial. However, the amount an insurer can pay may depend on the applicable policy limits and the circumstances of the claim.
If you have suffered serious injuries in a Sherman Oaks car accident, understanding insurance policy limits and your available legal options can help you make informed decisions about your claim.
What Is an Insurance Policy Limit?
Insurance policy limits indicate the maximum amount an insurance company is generally obligated to pay under a particular coverage provision. The limits are stated in the insurance policy and can affect how much insurance coverage is available after an accident.
For example, a driver’s bodily injury liability coverage may have a specific limit for injuries to one person and another limit for injuries to multiple people in the same accident.
Policy limits can become particularly important when an accident causes significant injuries. If the losses are substantial, the available insurance coverage may not be enough to fully address all of the damages involved.
This is one reason why reviewing the insurance coverage and circumstances of an accident carefully can be important before accepting a settlement.
California Policy Limits for Auto Accidents
California law sets minimum liability insurance requirements for drivers. California’s minimum liability limits are commonly described as 15/30/5, meaning:
- $15,000 for bodily injury or death to one person
- $30,000 for bodily injury or death to two or more people
- $5,000 for property damage
These are minimum required limits, not necessarily the limits carried by every driver. Some motorists have policies with higher coverage limits.
Because insurance policies can differ, it is important to determine what coverage actually applies to a particular accident rather than assuming every driver has only the minimum coverage.
Can an Auto Accident Settlement Exceed the Policy Limits?
Auto accident settlements are often negotiated within the available insurance coverage. However, the amount and sources of potential recovery can depend on the facts of the case, the applicable insurance policies, and the parties involved.
A serious accident may result in damages that are much greater than the at-fault driver’s liability policy limits. This can create additional legal and insurance questions that should be evaluated before an injured person agrees to a settlement.
In some circumstances, other potential sources of recovery may need to be considered. These could include additional applicable insurance coverage or claims against other potentially responsible parties, depending on the facts.
A settlement should therefore not be evaluated solely by looking at the first offer made by an insurance company.
Factors That Can Affect an Accident Settlement
Rarely are car accident settlements as simple as looking at the amount of vehicle damage. Several factors can influence the value and resolution of an accident claim.
Severity of Injuries
Serious injuries can result in significant medical treatment and may affect a person’s ability to work and carry out normal activities.
Injuries involving surgery, extended treatment, permanent impairment, traumatic brain injuries, or paralysis can have particularly significant consequences. The evidence supporting the injury and resulting losses can be important when evaluating a claim.
Medical Expenses and Future Treatment
Medical expenses are another important consideration. An accident victim may have emergency treatment, hospital bills, rehabilitation, medication, physical therapy, or other accident-related healthcare expenses.
Where an injury requires continuing treatment, future medical needs may also need to be considered when evaluating the overall damages.
Lost Income and Other Losses
An injured person may be unable to work while recovering. Serious injuries can sometimes affect a person’s ability to earn income in the future as well.
Other losses, including property damage and the physical and emotional effects of an accident, may also be relevant depending on the circumstances of the claim.
Evidence Supporting the Accident
Evidence can be important when establishing both liability and damages. LionsGate Law Group’s Sherman Oaks car accident service page explains that its attorneys investigate accident evidence, including traffic camera footage, police reports, and witness statements.
For a serious accident, evidence may help establish how the crash happened, who may be responsible, and the extent of the losses suffered.
What Happens When Damages Are Greater Than Insurance Coverage?
A person may suffer losses that are greater than the insurance coverage available from an at-fault driver’s policy. When this happens, the situation can become more complicated.
The appropriate legal options depend on the specific facts, including the applicable policies, the number of parties involved, and whether other sources of coverage or potentially responsible parties exist.
This is particularly important in accidents involving multiple vehicles. A crash on a busy Sherman Oaks route can involve several drivers and insurance policies, making it important to determine how the accident occurred and what coverage may apply.
LionsGate Law Group APC handles a range of car accident cases in Sherman Oaks and the San Fernando Valley, including rear-end collisions, distracted driving accidents, drunk driving accidents, and multi-vehicle and freeway pile-ups.
Why Speak With a Sherman Oaks Car Accident Lawyer?
Insurance companies have an interest in resolving claims, but an injured person should understand the full scope of their potential losses and available coverage before agreeing to a settlement.
A car accident lawyer can investigate the crash, review the applicable insurance coverage, gather supporting evidence, communicate with insurance companies, and explain the legal options available based on the circumstances.
Professional legal help can be especially important when injuries are serious, several vehicles are involved, or the available insurance coverage may not fully address the damages.
Contact LionsGate Law Group for a Free Case Review
Settlements that exceed an individual insurance policy’s limits are not something that should be assumed or expected in every serious accident. However, when damages are substantial, understanding the available insurance coverage and potential legal options is important.
If you were injured in a car accident in Sherman Oaks, LionsGate Law Group APC can review the circumstances of your accident and help you understand your options. The firm’s Sherman Oaks car accident practice serves people injured in crashes throughout the area and the San Fernando Valley.
Call LionsGate Law Group APC at 818-574-5494 for a free case review and learn more about your potential car accident claim.
