Personal Injury | August 13, 2025 by JOSHUA D. ANDERSON

What Happens When Your Car Accident Claim Exceeds Insurance Limits?

One of the major reasons you have car insurance is to help cover your costs in an accident. But what happens when a car accident claim exceeds the insurance policy limits, like if someone suffers serious injuries or there’s more than one victim?

It depends on a number of factors, like whether or not you’re the at-fault driver, if you have sufficient personal assets to make up the difference, and the specific circumstances of your accident, to name a few. It’s a complicated situation, but this guide breaks it all down.

What Is a Car Insurance Limit? 

In short, a car insurance limit is the maximum amount the insurance company will pay if you’re at fault for a car accident. If you’re in a car accident and the total expenses are less than your insurance limit, that’s all the insurance company will pay.

While Washington State has statutory minimum coverage requirements for car insurance policies, there is no maximum. You’re allowed to purchase car insurance with a higher limit as long as you’re willing to pay the premiums, though most companies have an upper limit of what they’re willing to cover.

At a minimum, your car insurance policy must meet the following minimums for bodily injury liability coverage:

• $25,000 for the bodily injury or death of one person in one accident
• $50,000 for the bodily injury or death of two people in one accident
• $10,000 for property damage from one accident

Washington State also imposes fines for uninsured drivers. If you drive a vehicle without purchasing the minimum insurance coverage, you’ll be fined at least $550. If you’re at fault for a car accident and don’t pay for the damages or injuries, your license may be suspended under Washington’s Financial Responsibility Law.

Why Might a Car Accident Claim Exceed Insurance Limits?

Given the mandatory minimum coverage amounts for car insurance in Washington, it shouldn’t be surprising that serious car accidents would quickly exceed the insurance limits. However, even when the at-fault driver has a policy with higher limits, your claim may still exceed the limit due to:

• Severity of injuries. Depending on the seriousness and nature of the crash, you may need a lot of care to recover, which means a lot of medical bills.
• Property damage. Newer cars have expensive safety features that require recalibration after a car accident, leading to higher vehicle repair costs. Expenses can also add up when private property is damaged, like a fence or building.
• Multiple parties were injured. When two or more people are injured in a car accident, they have to split the policy limit. For example, if your insurance policy pays $100,000 for two people’s injuries, they technically each get $50,000. But if each person’s medical expenses total $100,000, they’ll hit the policy limit quickly.
• Wrongful death. Surviving family members may be entitled to compensation above and beyond the policy limits for things like loss of income or funeral expenses. 

What Happens When Your Claim Exceeds Insurance Limits?

If you’re in a car accident that’s not your fault and your claim exceeds the at-fault driver’s insurance limit, you could be left financially strapped, unable to cover your immediate medical expenses and other bills. What’s more, if you’re unable to work or suffer permanent injuries, you may not be able to make ends meet.

Fortunately, when you’re not the at-fault driver, but your damages exceed insurance limits, you have a few options.

File a Claim With Your Own Insurance Company

Your insurance company may be able to help you recover the difference between your claim and policy limits if your auto insurance policy includes:

• Uninsured motorist coverage (UM)
• Underinsured motorist coverage (UIM)
• Personal injury protection (PIP)

While PIP covers your medical expenses and lost wages no matter who was at fault for the accident, UIM and UM only kick in under certain circumstances. Underinsured motorist coverage is triggered when the at-fault driver has car insurance, but your claim exceeds insurance limits. Uninsured motorist coverage is triggered when the at-fault driver has no car insurance. In both cases, UIM and UM may cover your expenses, like medical bills or lost wages, but it depends on the specifics of the policy.

Use Your Health Insurance

If the at-fault driver’s car insurance limit isn’t enough to cover your medical bills, you can tap into your health insurance policy to help cover your immediate medical expenses. However, if you go this route, it’s likely the insurance company will want to be reimbursed for the expenses if you get a settlement from the at-fault driver’s insurance company or the driver’s personal assets.

Look at Other Liable Parties

You can also consider looking to other parties who may have contributed to the accident. For example, if the at-fault driver was working at the time of the crash, you may be able to make a claim against their employer. Likewise, if poor road conditions contributed to the crash, you may be able to pursue a claim against the entity responsible for maintaining the road. 

Negotiate

Finally, you may want to consider negotiating with the insurance company and at fault driver to pursue additional compensation that covers your injuries and losses. Hiring an experienced car accident lawyer who understands the complexities of negotiating can ensure you receive the financial compensation you’re entitled to.

What Happens if I’m the At-Fault Driver?

When you’re the at-fault driver, the accident victims have a right to make a claim against your insurance policy as well as your personal assets if their claim exceeds your insurance policy limits. Legally, the insurance company only has to pay up to the coverage limits stated in the policy, so any amount over and beyond that will fall on you.

You could attempt to negotiate a settlement with the other party, and they may accept your insurance policy limit, but there’s no guarantee they will. Likewise, if their damages exceed policy limits and they pursue a lawsuit, you’ll be expected to pay the full judgment amount. 

Though you may never face this situation, you can protect yourself against the possibility by getting a car insurance policy with higher limits and purchasing an umbrella policy. The umbrella policy will cover expenses you’re liable for over and above the liability coverage of your car insurance coverage.

Anderson Law | Injury Attorneys Can Help

Whether you were at fault, partly at fault, or not at fault for the accident, medical bills and other expenses can add up quickly, leaving you in a financial bind, especially when your car accident claim exceeds the policy. Partnering with a knowledgeable personal injury attorney can ensure you receive the compensation you’re entitled to.

Anderson Law Injury Attorneys has over 50 years of experience helping car accident victims negotiate with insurance companies and at-fault drivers to ensure they’re fully compensated for their injuries and damages. Contact us today for a free, no-obligation consultation and learn more about your options. There’s no fee unless you win.

The information contained on this website is intended for informational purposes only, and is not legal advice. Nothing in this website establishes an attorney-client relationship between us. Different facts can dramatically affect a legal opinion. You should consult an attorney for legal advice that pertains to your personal situation.