Policy Limits
Understanding
Sherman Oaks, California
Some policies provide very little coverage. Others provide much more.
Understanding available insurance coverage may help you make more informed decisions
after an accident.
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The Hidden Cap That May Affect Your Recovery
(Most People Miss This)
A policy limit is the maximum amount an insurance company will pay under a particular insurance policy.
In a bodily injury claim, at fault party’s liability insurance has a cap on what their insurer is required to pay for injuries they cause.
In multi-party accidents, policy limits are divided among all injured parties.
Once that limit is reached, the insurance company has no further obligation, even if the injuries are severe.
If the at-fault driver’s insurance is lower than your total damages, you may need to explore additional recovery options, including suing the driver personally or filing a claim under your own uninsured/underinsured motorist coverage. By Garret A. Lungin, Attorney at Law.
Personal Auto InsurancePolicy
California law requires drivers to carry auto liability insurance. In most cases, drivers choose how much liability coverage to purchase, although a contractual obligation may require a specific amount of coverage.
As a result, the insurance available after an accident can vary significantly from one case to another.
Liability insurance is designed to pay for injuries and property damage the insured driver causes to others, up to the policy limits.
California Minimum Auto Policy Limits
As of January 1, 2025, California law requires drivers to carry minimum liability coverage of:
$30,000 per injured person
$60,000 per accident
$15,000 for property damage
California's Low Cost Auto Insurance Program
CLCA is California's low-cost auto insurance program for eligible low-income California drivers.
$10,000 per injured person
$20,000 per accident
$3,000 for property damage
Private Home Insurance Policy
Many injuries happen on privately owned property, including homes, apartment buildings, businesses, and other private premises.
Depending on the circumstances, the property owner's liability insurance may provide coverage if the owner is legally responsible for the unsafe condition that caused the injury.
The amount of available insurance varies from one property to another because coverage limits are often selected by the property owner, unless a contractual obligation requires a specific amount of coverage.
Comercial Auto Insurance Policy
Commercial auto insurance policies often provide higher liability limits than personal auto policies and may be written using a Combined Single Limit (CSL), which combines bodily injury and property damage into one total amount of available coverage for a covered accident.
While many commercial vehicles are subject to California's general minimum liability requirements, certain commercial operations—such as larger trucks, passenger carriers, or vehicles transporting specific types of cargo—may be required by state or federal law to carry significantly higher CSL limits, often starting at $750,000 and increasing to several million dollars depending on the type of operation.
Comercial Property Insurance Policy
Commercial property insurance primarily protects a business's physical property rather than injuries to others.
However, businesses often carry additional insurance policies—such as commercial general liability, umbrella, or other specialized coverage—that may provide protection when someone is injured on or because of business property.
Because every business carries different insurance, identifying all available coverage may be an important step in evaluating your options after an accident.
Governmet Claims
Government entities are often self-insured, participate in risk pools, or maintain insurance policies depending on the agency and the circumstances.
In addition to different coverage requirements, special claim procedures and shorter filing deadlines may apply.
Understanding which government entity was involved may be an important first step in evaluating your options.
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Municipal (City) Claims – Claims involving city governments may arise from collisions with city vehicles, dangerous public property, or other incidents involving municipal agencies. Cities often manage claims through self-insurance programs, risk management departments, or insurance policies.
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County Claims – Counties may be responsible for incidents involving county-operated vehicles, roads, parks, medical facilities, or other county services. Coverage may be provided through self-insurance, pooled risk programs, or commercial insurance depending on the county.
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State Claims – Claims involving the State of California may arise from state agencies, employees, highways, or state-owned property. Special claim procedures generally apply before a lawsuit may be filed, and coverage may involve state self-insurance programs or other available resources.
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Federal Claims – Claims involving the federal government are governed by different laws and procedures than most state or local claims. Depending on the circumstances, recovery may involve the Federal Tort Claims Act, federal agencies, or other applicable programs, each with its own requirements and deadlines.
Additional Considerations
After an accident, many people focus on the other driver's insurance. However, your own insurance policy may also include valuable coverages that can help protect you, your passengers, or your vehicle.
Depending on the policy you purchased, these coverages may provide benefits even when the other driver has little or no insurance, or when fault is disputed.
Understanding what your own policy includes may be just as important as understanding the other driver's coverage.
Your Own Auto Insurance Coverage
That Can Help You After an Accident
Uninsured Motorist Coverage
Uninsured motorist coverage may help pay for your injuries if you're hit by a driver who has no auto insurance or in certain hit-and-run accidents. Depending on your policy, it may also help pay for damage to your vehicle when the at-fault driver has no insurance.
This coverate also may help if the at-fault driver's insurance isn't enough to fully compensate you for your injuries. It may provide additional coverage up to the limits of your own policy.
Collision Coverage
Collision coverage helps pay to repair or replace your own vehicle after an accident, regardless of who was at fault. It generally applies after your deductible is paid.
MedPay Coverage
MedPay helps pay for reasonable medical expenses after a car accident, regardless of who caused the collision. Many people don't realize that these benefits may need to be reimbursed if they later recover compensation from the at-fault party or their own uninsured motorist coverate.
Before You Assume, Know Your Options
Los accidentes de pasajeros pueden ocurrir en varios modos de transporte, incluidos automóviles, uber, lyft, taxis, autobuses, trenes y aviones. Estos accidentes pueden ser el resultado de varios factores, como fallas mecánicas, errores humanos o condiciones climáticas. Los pasajeros involucrados en accidentes pueden experimentar lesiones físicas, traumas emocionales y cargas financieras como resultado de gastos médicos y salarios perdidos. Además, los gobiernos y las empresas de transporte tienen la responsabilidad de garantizar que los vehículos y la infraestructura de transporte sean seguros para los pasajeros. Desafortunadamente, los accidentes no siempre se pueden evitar. If ha sufrido una lesión como pasajero, puede tener derecho a una compensación independientemente de quién tenga la culpa del accidente. Su reclamo es separado e independiente del conductor. The Oficinas Legales de Garret A. Lungin protegerá sus derechos y obtendrá la compensación que merece.
