Getting into a car accident is stressful enough. But what happens when the damages from the crash are so severe that they exceed the at-fault driver’s insurance coverage? It’s not something most people expect—but it happens more often than you'd think. If your car accident claim is larger than the insurance limits, the situation becomes more complex, but that doesn’t mean you’re out of options.

This article will walk you through What Happens When a Car Accident Claim Exceeds Insurance Limits and what steps you can take to protect your rights and recover fair compensation.

Understanding Policy Limits: What They Actually Cover

Car insurance policies come with limits—that is, the maximum amount the insurance company will pay out per accident. For example, a driver might have coverage that includes:

• $25,000 per person for bodily injury

• $50,000 total per accident for bodily injury (if more than one person is injured)

• $25,000 for property damage

These numbers vary by state, and some drivers may carry higher limits or additional coverage types, like umbrella policies. But if your claim—for medical expenses, lost wages, or property damage—goes beyond what their policy covers, the insurance company is only obligated to pay up to those limits.

When the Coverage Isn’t Enough

Let’s say you’re seriously injured in an accident caused by another driver. Your medical bills alone total $100,000, but their insurance policy only covers $50,000. What happens to the other $50,000?

This is where the insurance company’s responsibility ends and the at-fault driver’s personal responsibility begins. You may need to pursue the remaining compensation through other means.

Option 1: Suing the At-Fault Driver Personally

One route is to file a lawsuit against the driver for the amount not covered by their insurance. If you win, the court may issue a judgment requiring the driver to pay the difference out of pocket.

However, collecting from an individual can be difficult. Many drivers who carry minimal insurance don’t have significant personal assets to go after. Even if you win a judgment, it may be tough to enforce it unless the driver has wages or assets that can be legally garnished.

In short, suing someone with limited means might not result in actual payment—even if you’re legally entitled to it.

Option 2: Using Your Own Underinsured Motorist Coverage

If you carry underinsured motorist (UIM) coverage, you may be able to file a claim with your own insurance company for the remaining balance. This type of coverage is specifically designed to kick in when the at-fault driver’s policy isn’t enough to cover your losses.

For example, if your total damages are $100,000, and the other driver’s insurer pays $50,000, your UIM coverage could potentially cover the remaining $50,000—depending on your policy limits.

Many people overlook the importance of this coverage, but it can be a financial lifesaver in situations where the other driver simply doesn’t have enough insurance.

Option 3: Other Avenues for Compensation

In some cases, there may be additional parties who share liability. For instance:

• The driver was on the job at the time of the crash, and their employer may be partially responsible.

• A government agency may be liable for unsafe road conditions.

• A car manufacturer could be at fault if a vehicle defect contributed to the accident.

An experienced car accident attorney can help investigate the case and determine if any other parties might be held liable—potentially unlocking additional sources of compensation.

Protecting Yourself in the Future

If you’re reading this after already being in an accident, the best course of action is to talk with a lawyer about your options, especially if your damages exceed insurance limits. But if you're looking to prepare for the future, one of the smartest moves you can make is to review your own policy.

Consider increasing your uninsured/underinsured motorist coverage and medical payments coverage, and even adding an umbrella policy if you have significant assets to protect. It’s often more affordable than people realize—and can make a huge difference when the unexpected happens.

Final Thoughts: Don’t Assume All Hope Is Lost

Just because your claim exceeds the at-fault driver’s insurance coverage doesn’t mean you’re out of luck. While the road ahead may be more complicated, you still have options—especially with the help of a knowledgeable personal injury attorney.

From tapping into your own insurance to identifying other responsible parties, there are ways to bridge the gap between what’s covered and what’s owed. And remember, the right legal guidance can help ensure that you don’t leave money on the table or get stuck paying for someone else’s mistake.

A car accident may knock you off course temporarily, but knowing your rights and the options available can help you get back on track—and secure the compensation you deserve.