Auto accident settlements are a way to avoid litigation and settle the dispute between an injured party and the insurance company of the responsible party. This method is becoming increasingly common as it allows for a faster and more cost-effective resolution of such cases. A multitude of elements come into play when deciding on the amount of the settlement such as how extensive the damage is and how intricate the case is.

What is an Insurance Policy Limit?

Insurance policy limits indicate the highest amount an insurer is willing to pay out under any specified coverage. This limit is declared in the insurance policy and serves as a constraint on the insurer’s liability. The purpose of policy limits is to limit the exposure of the company to potential financial losses.

However, if an agreeable settlement cannot be reached without recourse to courts of law, litigation may become a viable option. In these situations, a court-ordered money award may not be restricted by policy limits

California Policy Limit for Accident Settlement

In California, the minimum insurance coverage required for accidents is:


  • $15,000 for the bodily injury or death of a single person
  • $30,000 for the bodily injury or death of multiple persons in the same accident
  • $5,000 for damage to other people’s property involved in the accident

Factors that Can Cause Settlements to Exceed Policy Limits

Rarely are car accident settlements out of the scope of the applicable policy limits, however, it is possible if there is an abundance of evidence demonstrating serious injuries and consequential losses. 

In some cases, the injuries sustained in an accident are so severe that they are likely to result in settlements that exceed the policy limits of the responsible party’s insurance coverage. A major injury that requires surgeries and inpatient therapy can easily incur bills that go beyond the upper limits of coverage provided by most auto insurance policies. These types of injuries can have a significant impact on an individual’s life – leaving them with lifelong impairments, disabilities, and reduced quality of life. 


Some of the injuries that are most likely to lead to settlements that exceed policy limits include lifelong injuries, the loss of a limb, traumatic brain injuries, and injuries that result in paralysis. These often result in high medical bills, ongoing care expenses, and lost wages. 

Having a reliable personal injury lawyer by your side is incredibly beneficial to get adequate reimbursement for any serious injuries or damages.

Contact LionsGate Law Group to Get Maximum Settlement

While settlements exceeding policy limits are relatively uncommon, it’s not entirely impossible. The key to maximizing your settlement is to work with a skilled attorney.

LionsGate Law Group has industry veterans who have achieved a successful track record in this domain. 

Don’t leave your settlement to chance, contact LionsGate Law Group today and take control of your financial recovery. The earlier you act, the better the chances are of securing a settlement that meets your needs. Reach out to us now to get started!