Posted in Car Accidents on September 4, 2025
Car accident settlements can exceed the limits of another driver’s auto policy coverage. When this happens, accident victims may find themselves seeking other options for recovering their losses to minimize out-of-pocket costs. Legal representation after an accident in Long Beach can help determine the best course of action for your situation.
Insurance Requirements for California Drivers
California drivers are required to be financially responsible for the damages they cause in an accident. This means that they must either meet minimum insurance requirements or be self-insured and cover the cost of the injured party’s losses themselves. Regardless of how a driver chooses to be insured, they must be able to provide proof of coverage after an accident.
At the beginning of 2025, minimum insurance policy limits increased for California drivers. They are required to carry at least $30,000 for bodily injury or death for one person, $60,000 for bodily injury or death of two or more people, and $15,000 for property damage. Self-insured drivers must either deposit $75,000 with the DMV or secure a surety bond for the same amount.
What Happens When Insurance Does Not Fully Cover Your Losses
California’s insurance laws are designed to ensure that drivers can pay for damages they cause to other drivers. Policy limits typically cover medical expenses, vehicle repair costs, and lost wages. Depending on the situation, non-economic damages may also be covered.
However, the value of your claim may be far beyond the limits of the other driver’s policy. This may be especially true when catastrophic injuries occur that require extensive and long-term care. While an insurance company may approve a settlement equal to the at-fault driver’s policy limit, they will not pay any more than the specified limit. This could still leave you with a considerable amount of expense and the need to find additional options for recovery.
Options for Recovering Extra Compensation in Your Case
You may have to pursue other avenues if the insurance company will not pay you the full value of your losses. With the help of your lawyer, you can examine your options and needs to determine which of the following options may be right for you:
- File a lawsuit: You could potentially file a Long Beach injury lawsuit directly against the person responsible for the accident if they have the means of compensating you. You could also sue a third party if they contributed to the accident in some way.
- File a claim with your own insurance company: You may be able to recover the additional value of your losses by filing a claim under your uninsured/underinsured motorist coverage. Your insurance company may be able to make up the difference between what you need and what the at-fault party’s insurance would pay.
- Sue the at-fault driver’s insurance company: Insurance companies may fight you on the value of your losses and refuse to pay you anything above the policy limit. If they actively work against you by intentionally delaying your claim or unfairly denying your claim, you may be able to file an insurance bad faith lawsuit instead.
You should carefully consider the pros and cons of each option, as they may not necessarily yield the results you are seeking. None of these options can guarantee that you will recover the excess value of your claim, but they can increase the possibility of additional recovery.