It’s one of the most devastating moments in a personal injury case. You’ve suffered serious injuries, your medical bills are climbing into the tens or hundreds of thousands of dollars, and then you learn the driver who hit you only carries the minimum $30,000 California insurance policy.
That amount might not even cover your initial hospital visit. You feel hopeless and abandoned, wondering, “Is that it? Am I responsible for the rest of my bills because the person who hurt me was underinsured?”
The answer is no. While the path is more challenging, you have options. An experienced personal injury lawyer knows that when an insurance policy isn’t enough, the investigation is just beginning. This guide explains the process of seeking compensation beyond the policy limits.
The Problem: When Your Damages Exceed the Policy Limits
A “policy limit” is the maximum amount of money an insurance company is required to pay for a claim. In California, the minimum auto insurance policy required includes $30,000 for bodily injury or death per person, $60,000 for bodily injury or death per accident, and $15,000 for property damage. For anyone who has suffered broken bones, a brain injury, or required surgery, this amount is often tragically insufficient to cover their losses.
When this happens, we must look for other potential sources of recovery.
Step 1: The Search for Additional Insurance Coverage
Before even considering personal assets, the first step for a skilled attorney is a thorough search for other applicable insurance policies. This is often the most successful strategy to ensure you are fairly compensated. We investigate every possibility, but the most important is often found on your own policy.
Your UIM Policy: The Most Important Protection You Probably Have
The single most common and effective solution in this situation is your own Uninsured/Underinsured Motorist (UIM) coverage. This is a part of your own auto insurance policy that you purchase to protect yourself from drivers who have little or no insurance.
- How UIM Works: UIM coverage steps in to cover the “gap” between your total damages and the at-fault driver’s low policy limit.
Here’s a simple example:- Your total damages (medical bills, lost wages, suffering) are valued at $150,000.
- The at-fault driver’s policy limit is only $30,000.
- Your UIM policy can cover the remaining $120,000, assuming you have UIM limits of at least that amount.
- Will My Rates Go Up? This is a common fear, but in California, an insurance company cannot raise your rates for using your UIM coverage for an accident that was not your fault. You pay for this protection, and you have every right to use it when you need it.
Step 2: The Asset Investigation Process
If there is no other insurance available, the next step is to investigate the at-fault driver’s personal assets.
- The Request (The “Asset Declaration”): We will demand that the at-fault driver complete a sworn statement, or “Declaration of Assets,” disclosing their financial standing. This includes information about their employment, income, property ownership, bank accounts, stocks, and trusts.
- The Search (Investigation): We don’t just take their word for it. Our legal team can conduct public records searches to verify property ownership and other discoverable assets. In some cases, we may recommend hiring a private investigator for a deeper search.
- The Reality Check: It is important to have realistic expectations. Often, a person with minimum insurance coverage has few assets to pursue. Furthermore, even if assets exist, a defendant can try to hide them or file for bankruptcy to protect them.
Is It Worth Pursuing a Difficult Case?
When insurance is low and the path forward seems complicated, it’s natural to have questions. Our free and confidential “Do I Have a Case?” tool can help you get a foundational assessment of your situation and understand your options.
Do I Have a Personal Injury Case?
Can You Trust an Asset Declaration?
What if the other driver lies on their declaration? This is a valid concern. Lying on a sworn statement is a form of fraud. However, the legal system unfortunately makes it difficult to remedy this after a case has been settled.
This is why the experience of your attorney is so crucial. We don’t simply take an asset declaration at face value. We build protections into the settlement agreement itself. For example, we can add a clause stating that the settlement is based on the truthfulness of their declaration. If they are later found to have lied, this can give us grounds to void the agreement and pursue a new breach of contract lawsuit. It’s a key step in holding a dishonest party accountable.
Success Story: Finding More Money When Insurance Was Minimal
Finding additional sources of recovery is a critical skill. We represented a passenger who was injured in a rideshare accident. The at-fault driver carried a minimal personal auto insurance policy that would not have come close to covering our client’s serious injuries. Our team immediately recognized that we could open a claim with Uber’s much larger underinsured motorist (UIM) policy. By skillfully navigating this complex, multi-layered insurance situation, we successfully secured a $285,000 settlement for our client—far exceeding the at-fault driver’s small policy.
What Our Clients Say
“I spent too much time looking through these threads while trying to find a personal injury lawyer earlier this year. What I realized is that if they have ads everywhere, you’re just another number to them. After calling around I ended up going with Sally Morin – she was on the point and the only one that actually seemed to care about my case.” – Reddit
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“I can recommend this firm Sally Morin Lawyers, they help me with my car accident and got a huge settlement claim.” – Reddit
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Frequently Asked Questions About Policy Limits and Assets
Don’t Give Up When the Insurance Is Not Enough
Learning that the at-fault driver’s insurance is insufficient is heartbreaking, but it doesn’t have to be the end of the road. At Sally Morin Personal Injury Lawyers, we are skilled at uncovering all possible sources of recovery for our seriously injured clients. We conduct thorough investigations and create smart legal strategies to maximize your outcome.
Contact us for a free case evaluation to discuss the specifics of your situation. Call 877-380-8852 or get in touch online today.
