Can You Sue an Insurance Company for More Than the Policy Limits?

If you've been seriously injured in a car accident, you might quickly realize that the other driver's insurance policy limits do not come close to covering your medical bills, lost wages, and other accident-related losses. So, what now? Can you sue the insurance company for more than what their auto insurance policy covers?

The short answer is: it depends on the circumstances. In some situations, an accident victim may have a path to pursue compensation beyond an insurance policy’s limits. However, in many cases, the available coverage ends up being the primary source of recovery. In this article, our experienced car accident lawyers explain how policy limits work, when it may be possible to look beyond them, and what factors can affect whether that is a realistic option.

What Are Insurance Policy Limits?

Every auto insurance policy comes with a maximum payout amount — often called policy limits or coverage limits.

For example, a driver might pay for liability insurance coverage that pays up to $50,000 per person for bodily injury, or $25,000 for property damage.

If your medical expenses alone exceed that amount, you’re not automatically out of luck, but you will need to consider your legal options.

Can You Sue for More Than the At-Fault Driver’s Insurance Policy?

Yes, you can, but usually not directly against the insurance company, and not always in a way that makes financial sense. Here's how it breaks down:

• You cannot usually sue the insurance company directly for more than the limits stated in the at-fault driver’s insurance policy.
• But you can sue the at-fault driver personally to recover additional damages beyond those limits.
• In some cases, if the insurance company may have acted in bad faith (e.g., unreasonably delayed, denied, or underpaid your claim), you can file a bad faith claim directly against the insurer and pursue additional compensation.

Although the law may allow a path beyond the stated policy limits in some cases, that does not necessarily mean the injured person will end up recovering more money. Whether any additional amount can actually be recovered often depends on factors that can make pursuing it more uncertain in practice.

When You Might Be Able to Recover More Than the Insurance Limits

Here are some common scenarios where crash victims may be able to exceed policy limits and obtain more:

1. The At-Fault Driver Has Personal Assets

You can file a personal injury lawsuit against the at-fault party to go after their personal savings, investments, or even property. Keep in mind, though, most drivers won’t have enough assets to make this route worthwhile.

2. The Driver Was Covered by an Umbrella Policy

An umbrella policy provides additional coverage beyond the basic auto insurance limits, sometimes adding $1 million or more in liability protection. If the at-fault driver or their employer (in a company car or commercial vehicle) has umbrella insurance, your experienced lawyer can help you file a claim against it.

3. There Are Multiple Liable Parties

If multiple parties caused the accident — for example, two negligent drivers or a driver and a vehicle manufacturer (in the case of a product defect with the car) — you may be able to seek compensation from more than one insurance policy.

4. You Have Underinsured Motorist Coverage

If your own auto insurance policy includes underinsured motorist coverage, you may be able to recover from your insurer once the at-fault driver’s policy is exhausted. This only works if your auto accident injuries qualify under your own plan’s rules.

5. The Insurer Acted in Bad Faith

If the insurance company fails to negotiate fairly, delays payment, or refuses a reasonable settlement offer when liability is clear, your attorney may recommend suing them directly for bad faith. This is rare but powerful, and may allow you to recover more than the insurance settlement they initially offered.

Why Recovering More Is Often Harder Than It Sounds

Many injured people sincerely believe they are owed more money than what they eventually receive, especially when they are dealing with severe injuries, pain and suffering, and major disruption to their lives. Often, that feeling is understandable. But there is a difference between a case being worth more in theory and there being a realistic way to collect more in practice.

Even if a court awards more than the available insurance policy limits, the at-fault driver may not have enough assets or income to satisfy that judgment. That is why law firms do not typically pursue excess judgments in every case. In many situations, the better approach is to identify all realistic sources of recovery and set clear expectations from the beginning.

What Can Make Recovery Beyond Policy Limits More Realistic?

This issue often comes up in cases involving catastrophic injuries or wrongful death, where the value of the losses may far exceed the available liability coverage. Even then, recovery beyond the policy limits usually depends on whether there are other realistic sources of compensation, such as:

• Additional insurance coverage
• Umbrella or excess liability coverage
• Multiple liable parties
• Underinsured motorist coverage
• A viable bad faith claim against the insurer
• Collectible personal assets of the at-fault party in limited cases

Why You Need an Experienced Personal Injury Attorney

Trying to go beyond the insurance company’s policy limits isn’t something you can DIY. It requires a deep understanding of liability coverage, insurance policies, and personal injury law. A skilled lawyer can assess the total damages, identify realistic sources of compensation, and help you avoid building expectations around outcomes that may be legally possible but financially unlikely.

Your experienced attorney can also:

• Identify multiple defendants or liable parties.
• Pursue compensation through umbrella coverage.
• Help you file a lawsuit if the insurance settlement falls short.
• Coordinate with your health insurance provider.
• Advise if going after the at-fault driver’s personal assets is worth it.

Let Stracci Law Group Help You Get What You’re Owed

After a serious car crash, you might be told there is “nothing more” you can collect. Sometimes that is true, and sometimes there may be other sources of recovery worth investigating. The important thing is to evaluate the case honestly. If you or a loved one were injured in an auto accident and the insurance policy limits do not begin to cover your losses, our team can review the facts and explain what options may realistically exist.

At Stracci Law Group, our experienced attorneys have been fighting for accident victims facing life-changing injuries for over 100 years combined — and we know how to find coverage that others might miss. Whether that means filing a bad faith claim, exploring umbrella policies, or holding the liable party accountable in court, we’ll work to get you as much compensation as the law allows.

Call Stracci Law Group today at (219) 525-1000 or request your free consultation online. Let's make sure you get every dollar you’re entitled to.