(940) 800-2500
Mon - Fri 08:00AM-5:00PM - Sat/Sun By Appt
Free Consultation

Who Pays The Damages That Exceed The Policy Limits?

Who Pays The Damages That Exceed The Policy Limits?

In the unfortunate event of a personal injury accident, you may find yourself wondering about the financial aspects of recovery. Who will cover your medical expenses, lost wages, and other damages? This blog post will explore a common concern that arises in personal injury cases: What happens when the damages exceed the insurance policy limits? As experienced Personal Injury Attorneys in Denton, Texas, we at Chandler Ross Injury Attorneys are here to shed light on this complex issue.

Understanding Insurance Policy Limits

Before diving into who pays when damages exceed policy limits, it’s essential to understand what insurance policy limits are. When you purchase an insurance policy, whether it’s for your car, home, or business, the policy specifies the maximum amount the insurance company will pay in the event of a covered claim.

In the context of personal injury, if you’re involved in an accident where you’re at fault, your liability insurance will have a policy limit. For instance, if you have a liability policy with a limit of $100,000, this means your insurance will pay up to $100,000 for damages caused by the accident. Any expenses beyond that amount will have to be covered from other sources.

When Damages Exceed Policy Limits

When an accident leads to damages that exceed the at-fault party’s insurance policy limits, it can be a complex and challenging situation. Let’s delve into some key factors to consider:

1. Personal Assets

If you are the at-fault party and your insurance coverage falls short of covering all the damages, your personal assets may be at risk. In this case, the injured party (the plaintiff) may seek a legal judgment against you to recover the remaining amount. Consulting with an experienced Personal Injury Attorney is crucial to protect your assets and explore possible legal options.

2. Underinsured Motorist (UIM) Coverage

If you are the victim of an accident and the at-fault party’s insurance policy limits cannot cover your damages, you may have Underinsured Motorist (UIM) coverage as part of your own insurance policy. UIM coverage is designed to step in and compensate you when the at-fault party’s insurance is insufficient. This coverage can help bridge the gap between the policy limits and your actual damages.

3. Umbrella Insurance

Some individuals and businesses have umbrella insurance policies, which provide additional coverage above and beyond the limits of their primary insurance policies. If the at-fault party has an umbrella policy, it may come into play when damages exceed the primary policy limits.

4. Legal Action

In cases where insurance coverage and other options are insufficient, the injured party may choose to take legal action against the at-fault party. If successful, this can result in a judgment that obligates the at-fault party to pay the remaining damages. Personal Injury Attorneys play a vital role in these situations, advocating for their clients and pursuing the compensation they deserve.

5. Negotiation and Settlement

It’s essential to note that many personal injury cases are resolved through negotiation and settlement before going to court. In such instances, the parties involved may agree on a compensation amount that considers the at-fault party’s policy limits and other available resources.

Consult with Experienced Denton Personal Injury Lawyers

Navigating the complexities of personal injury cases when damages exceed insurance policy limits requires expert legal guidance. At Chandler Ross Injury Attorneys, our team of experienced Denton Personal Injury Lawyers is dedicated to helping you understand your rights and options. We are well-versed in handling cases where policy limits are a concern, and we work tirelessly to ensure you receive the compensation you deserve.

Tips for Dealing with Insurance Policy Limits

To help you make informed decisions in the event of an accident, here are some valuable tips:

  1. Review Your Insurance Policies: Understand the limits and coverage of your insurance policies, including your liability, UIM, and any umbrella policies.
  2. Seek Legal Advice: Consult with a reputable Personal Injury Attorney as soon as possible after an accident to assess your situation and explore all available options.
  3. Document Everything: Keep thorough records of all medical bills, property damage, and other expenses related to the accident. This documentation is crucial for proving your damages.
  4. Stay Cautious with Settlements: Be cautious when accepting settlements from insurance companies. It’s often best to consult with an attorney to ensure you’re not settling for less than you deserve.
  5. Consider Mediation: In some cases, mediation can be a more efficient and cost-effective way to resolve disputes related to personal injury claims.


When it comes to personal injury cases where damages exceed insurance policy limits, the situation can become complex and stressful. However, it’s crucial to remember that you have rights and options. Consulting with experienced Denton Personal Injury Lawyers like Chandler Ross Injury Attorneys can make all the difference in securing the compensation you need to recover and move forward.

Our team is here to assist you every step of the way, ensuring your rights are protected and your best interests are represented. If you’re in need of a Texas Personal Injury Attorney who will fight for your rights, don’t hesitate to reach out to us today. Your recovery and peace of mind are our top priorities.

With offices in Denton, Keller, Euless and Southlake, Texas, Chandler | Ross, PLLC and our Personal Injury Attorneys are well positioned to provide the most effective and highly-skilled representation possible.  We are a local law firm, focused on providing each and every client with the best representation possible.   If we take your case, it’s for a reason, and we’re going to prove that to you.  Don’t wait, and don’t compromise.  Contact us today for a Free Case Evaluation.  In most cases, you pay nothing unless you recover.  Contact us now.  (940) 800-2500


While Chandler | Ross makes every effort to ensure information disseminated throughout this website is correct and up to date, we cannot and do not guarantee that informational blogs and articles within the siteare accurate, up-to-date, and/or applicable to any specific situation.  Nothing herein is intended to create, and nor does it create an attorney-client relationship of any kind.  The information contained within this site is for general use and educational purposes only, and should not be relied upon as legal advice of any kind.  No action should be taken in reliance of this information without first contacting an attorney who is licensed to practice in your jurisdiction.

Related Posts