Can I Sue For More Than The Insurance Policy Limits?

Suing for more than the insurance policy limits is possible in California. How much you can collect depends on what other sources of money are available.

An insurance policy limit generally caps what the insurer must pay, but it doesn’t control the total damages the responsible party owes you. If your losses exceed the available coverage, you may pursue the defendant’s available assets, other responsible parties, your UIM benefits, or rights arising from the insurer’s handling of a settlement opportunity. Whether you can collect the full amount depends on which of those sources are available.

After an injury, bills pile up fast. A hospital stay or surgery can cost far more than a basic insurance policy will cover. In many cases, the minimum required coverage is insufficient to cover serious injuries. Knowing where that limit is set and what your options are is the first step.

When Do Damages Exceed Policy Limits In California?

Damages exceed policy limits when an injured person’s covered losses are greater than the insurance available to pay them. This is especially common when injuries require hospitalization, surgery, rehabilitation, or long-term care, or when several people must share the same per-accident limit.

Once the policy limit is paid out, the insurer generally has no further payment obligation under that policy. Without other sources of coverage, injured people may be left paying the difference out of pocket.

Minimum Auto Insurance Policy Limits

California requires motorists to have minimum insurance coverage. In 2025, the state updated the minimum insurance coverage requirements for drivers to the following:

• $30,000 per injured person.
• $60,000 per accident.
• $15,000 for property damage.

If several people are injured in one incident, the $60,000 bodily injury limit must be divided among them, subject to the $30,000 per-person limit.

Many at-fault drivers carry only what the state requires, and that amount may not cover the costs of serious injuries or when several victims were harmed. When limits run out, injured people need to look to their own insurance or other at-fault parties for the rest.

How To Recover Compensation Beyond The Insurance Policy Limits

In California, injured people have several ways to pursue compensation beyond a policy’s limits. Among your options are the at-fault party’s personal assets, claims against other parties who share liability, your own additional insurance coverage, or a bad faith claim against an insurer that didn’t handle the settlement properly.

The available options depend on the insurance policies, responsible parties, and collectible assets involved in the case.

Before accepting a policy-limit settlement, review the proposed release carefully. An insurer will usually require you to release its insured from further liability in exchange for payment. Signing that release may prevent you from later pursuing the defendant’s personal assets, even if your damages exceed the settlement. Claims against other parties or under different insurance may still be possible. This depends on the wording of the release and the specific facts.

Path 1: The At-Fault Party’s Personal Assets

If insurance and other responsible parties do not cover the full loss, an injured person may seek an excess judgment against the at-fault party. Collection methods may include wage garnishment, bank levies, or liens on real property.

However, California law protects certain property and income from collection. For example, the homestead exemption protects a large share of home equity. An excess judgment is therefore valuable only to the extent it can realistically be collected.

Path 2: Other Liable Parties

The party directly responsible for your injury is often not the only one who can be held liable. Depending on the circumstances, others may share the blame, and each one may carry its own separate insurance policy.

Examples include:

• An employer, if the at-fault person was acting within the scope of their job.
• A manufacturer, if a defective product or vehicle part contributed to the injury.
• A property owner or manager, if unsafe conditions played a role.
• A government agency, if a dangerous condition of public property caused the accident.

Each additional liable party may have separate insurance or collectible assets. That means identifying every responsible party can meaningfully increase what you can recover.

Path 3: Your Own Additional Coverage

Before looking at the at-fault party’s assets, check what coverage you already carry. If you were injured in a car accident and the at-fault driver’s insurance is not enough, your Underinsured Motorist (UIM) coverage may provide additional compensation. However, the amount paid by the at-fault party’s bodily injury coverage generally reduces the amount available under your UIM limit.

If your UIM limit is $100,000 and you get $30,000 from the other driver’s insurance, you could still have up to $70,000 available under your UIM coverage. This amount depends on your damages and the policy terms. California requires insurers to offer UM/UIM coverage, although policyholders may reject it in writing.

An injured reader whose bills exceed policy limits needs immediate financial relief. While UIM takes time to settle, MedPay may cover eligible medical expenses. It applies regardless of fault and doesn’t require waiting for a liability settlement.

Beyond primary policies, some people, businesses, and property owners carry an umbrella policy. It adds more coverage to an underlying policy. Umbrella coverage isn’t limited to drivers. It can also extend a homeowner’s, landlord’s, or business’s liability coverage. Injury attorneys can determine whether an umbrella policy exists. They can also check if a claim can be made against it.

Path 4: Insurance Bad Faith Claim

Insurance bad faith may provide a path to additional compensation when an insurer unreasonably rejects a reasonable opportunity to settle within the available policy limits. However, an injured claimant generally cannot bring a direct bad-faith claim against the at-fault party’s insurer merely because it denied, delayed, or undervalued the injury claim.

This option may become available if the insurer’s unreasonable refusal to settle leads to a judgment against the at-fault party that exceeds the policy limits. The at-fault party may then have a bad-faith claim against the insurer, which could be assigned to the injured person as part of a settlement or another legally permitted arrangement. If the assigned claim succeeds, the injured person recovers compensation from the insurer beyond the original liability limits.

How Recovery Beyond Policy Limits Varies By Case Type

Recovery beyond policy limits varies because each type of case depends on the policies involved, whether additional parties share liability, and whether other coverage or assets are available. As a result, the best path may differ for an auto accident, premises liability claim, truck collision, dog bite, or third-party workplace injury.

Here’s how policy-limit issues tend to play out across common scenarios.

• Car Accidents: If the at-fault driver’s insurance is not enough, you may be able to use your underinsured motorist coverage. You may also have a claim against the driver’s employer, another driver, or a government agency responsible for an unsafe road. An umbrella policy may also provide more coverage.
• Premises Liability: If you were injured on unsafe property, more than one party may be responsible. You may be able to make claims against the property owner, manager, tenant, maintenance company, or security company. An umbrella policy or the property owner’s nonexempt assets may also help cover the remaining damages.
• Commercial Trucking Accidents: Commercial trucks usually carry significantly higher insurance than passenger vehicles. However, catastrophic trucking injuries can still exceed even those higher limits. Depending on the specific facts of your case, you may have claims against the following parties:
  • Truck driver
  • Trucking company
  • Vehicle owner
  • Maintenance company
  • Cargo loader
  • Another business involved in the shipment
• Dog Bites: Dog bite claims are usually covered under a homeowner’s or renter’s insurance policy. Some policies contain sublimits or breed-specific exclusions that reduce available coverage. Because homeowner’s policies are involved, an umbrella policy is often a more realistic source of additional recovery than pursuing the dog owner’s personal assets.
• Workplace Injuries Caused by a Third Party: Workers’ compensation generally bars a lawsuit against your employer, but a separate claim against that third party’s insurance remains available. This is a distinct legal path from a standard workers’ comp claim and often gets overlooked.

California Deadlines For Suing Beyond Policy Limits

California’s personal injury lawsuit deadline is generally 2 years from the date of injury under CCP § 335.1. However, certain circumstances may extend or shorten the deadline:

• Delayed Discovery: If you could not have known you were hurt right away, the two-year clock may start on the day you find out about the injury or reasonably should have discovered it.
• Minors: If the injured person was under 18 at the time of the incident, the deadline is generally tolled (paused) until they turn 18, under CCP §352.
• Claims Against Government Entities: If a public entity is responsible, you generally must present a written claim within six months of the injury under Government Code §911.2.
  • If the entity sends a written notice rejecting the claim, you generally have 6 months to sue from the date that notice was personally delivered or mailed.
  • If the entity doesn’t give the required written rejection notice, a different deadline may apply. This is usually 2 years from when the claim started.

Government deadlines are shorter than the usual two years. That’s why it’s helpful to have an injury attorney confirm all deadlines early. A single accident can involve both private and public defendants.

Arash Law Case Results: Recovering Compensation Beyond Insurance Policy Limits

Getting more than the insurance policy limit is no easy task, but Arash Law doesn’t back down on such challenges. Below are some of the cases we handled that led to high recoveries despite limited insurance coverage.

$2,500,000 — Insurer’s Failure to Pay Out Fairly.
After the firm originally settled a car accident claim within the defendant’s insurance policy limits, the insurance company failed to pay the settlement in a timely manner. Arash Law pursued the insurer directly over its handling of the payout and ultimately recovered $2.5 million for the client. The outcome was tied to the insurer’s own conduct rather than the at-fault driver’s coverage alone.

$1,430,000 — Recovery Far Exceeding a $15,000 Policy Limit.
The at-fault driver’s insurer carried only a $15,000 policy limit. Rather than accept that ceiling, Arash Law’s skilled lawyers pursued additional avenues of recovery and secured a $1,430,000 settlement for the client.

$6,000,000 — Maximum Policy Limits After a Fatal Drunk-Driving Collision.
A drunk driver crossed the double yellow lines on a two-lane highway, causing a head-on collision that killed a wife and mother. The defense attempted to dispute both coverage and liability on behalf of its insured, but Arash Law obtained the maximum available policy limit for the client.

Past results do not guarantee future outcomes. Every case is different, and results depend on the specific facts and evidence involved.

FAQs About Personal Injury Claims And Insurance Limits

When damages exceed insurance coverage, people often wonder about additional coverage, personal assets, and how to collect on an excess judgment. These questions cover the most common concerns claimants have. Knowing your options before you call an attorney can help you ask the right questions.

What Happens If An At-Fault Driver Has No Insurance At All?

If the at-fault driver has no insurance, you may pursue compensation through your own uninsured motorist (UM) coverage, if you have it. California requires auto insurers to offer UM coverage, but policyholders may reject it or, in writing, choose lower limits.

UM coverage may also apply to qualifying hit-and-run accidents involving an unidentified driver. Check your declarations page or contact your insurer to confirm whether you have UM coverage and what limits apply.

Does My Underinsured Motorist Coverage Pay For Property Damage?

No. UIM coverage in California only pays for bodily injury, not vehicle damage. To cover property damage from an uninsured driver, you need separate uninsured motorist property damage (UMPD) coverage, which pays up to the vehicle’s actual cash value or $3,500, whichever is less.

Collision coverage may provide broader protection because it can cover vehicle damage regardless of who caused the crash, subject to the deductible and policy terms.

Can A Defendant Set Up A Payment Plan For Excess Damages?

Yes. The parties may agree to an installment plan after judgment. In a limited civil case (involving $35,000 or less), a defendant may also ask the court to permit installment payments. For larger judgments, the defendant generally cannot force the injured party to accept the defendant’s proposed payment plan.

Do I Get To Keep The Full Amount I Recover Beyond Policy Limits?

Not necessarily. Before you receive your net recovery, certain amounts are typically deducted, such as outstanding medical liens, health insurance subrogation claims, MedPay reimbursement, or unpaid costs from litigation. An attorney can help identify and negotiate these liens, which can sometimes be reduced, so more of the recovery reaches you rather than lienholders.

How Long Is A Civil Judgment Valid In California?

A California civil judgment is enforceable for 10 years from the date it’s entered, under CCP §683.020. Once that period expires, the judgment creditor loses the ability to garnish wages, levy bank accounts, or force a sale of property to collect it.

Before the 10-year period runs out, the judgment creditor can file an application to renew the judgment, which extends its enforceability for another 10 years and can generally be repeated if the debt remains unpaid.

What Happens If The At-Fault Party Files For Bankruptcy?

A bankruptcy filing usually pauses judgment-collection activity and may ultimately discharge some personal liability for an excess judgment. However, not every injury judgment is dischargeable. Federal law generally excludes debts for death or personal injury caused by unlawful intoxicated driving, and debts arising from willful and malicious injuries may also be excluded. The result depends on the type of bankruptcy, the basis of the judgment, and the bankruptcy court’s rulings.

Do Personal Injury Lawyers Always Recommend Suing Beyond Limits?

Not always. An attorney will only suggest this if the defendant has real assets worth going after. If they have little, it may not be worth the cost. Even with a judgment, collecting from someone with no assets is hard and rarely worth the legal fees.

Many personal injury lawyers offer free case reviews, so take advantage of those offers to get a clear assessment of your case.

Get A Free Consultation From Arash Law’s Experienced Attorneys

Finding all the money you are owed takes real investigation. Other parties may share fault. There may be extra coverage beyond what the main policy pays. An insurer may have wrongly denied your claim. Our attorneys look into all of it.

AK Law handles every personal injury case on a contingency fee basis. That means you pay nothing unless we recover money for you.

For a free consultation from a car personal injury lawyer, reach us at (888) 488-1391. Your case review is free, and our attorneys can check every source of compensation you may be entitled to under California law.