Insurance policies usually cap the amount the insurer will pay under that policy. Once that cap is reached, the at fault party may be personally liable for any further costs. In certain circumstances, you can sue for the full amount of your damages even if they exceed the at fault party’s insurance coverage.

How Insurance Limits Work

Insurance limits are the maximum amounts the insurer agrees to pay under the policy. They define how much protection exists in case of a claim. The limits can be structured in different ways.

Per claim or per occurrence limits refer to the most the insurer pays for a single incident.
Aggregate limits refer to the total the insurer will pay over a policy period.

For example, if a bodily injury policy has a limit of 50,000 dollars per person, the insurer will only pay up to that amount for each injured party. If your damages exceed that amount, you may be responsible for the remainder yourself unless other options exist.

Yes, You Can Sue Beyond Insurance Limits

You have the right to sue for the full value of your losses even if the at fault party’s insurance coverage is less than your claim. The insurer pays up to the policy limit. The remainder, if you succeed, is your claim against the person or entity responsible for the accident.

For instance, if your damages total 100,000 dollars and the at fault driver’s insurance limit is 50,000 dollars, the insurer will pay the first 50,000. You can then pursue a lawsuit for the additional 50,000 against the defendant’s personal assets if available.

Conditions That Help You Recover Above the Limit

Recovering amounts above the insurance ceiling often depends on a few critical factors.

The defendant must have sufficient assets such as real estate, bank accounts, or business interests you can legally access.
There may be additional insurance policies, such as umbrella coverage, that extend beyond the primary policy.
If the insurer acted in bad faith, for example refusing reasonable settlement offers or unfairly handling your claim, you may also have a claim against the insurer itself.
Identifying multiple parties responsible for the injury can spread liability and open additional avenues for recovery.

How Courts Decide the Amount You Can Sue For

When you sue, courts award damages based on what you actually lost. These include

Economic damages such as medical bills, rehabilitation costs, property damage, and lost wages.
Non economic damages like pain and suffering, emotional distress, and loss of enjoyment of life.
In certain cases, punitive damages may be available when conduct was especially reckless or malicious.

You must present evidence supporting each category, including invoices, medical records, expert testimony, wage reports, and documentation of emotional harm.

Steps to Seek Compensation Beyond Insurance Limits

To pursue the amount above the insurance coverage, you typically do the following.

Calculate total damages
Add medical costs past and future, lost earnings, property damage, and non economic losses to arrive at your full damages figure.

Identify all liable parties
If more than one party shares fault, such as a driver’s employer or property owner, pursue claims against each of them.

Investigate the defendant’s assets
Determine what the defendant owns such as property, vehicles, bank accounts, or businesses that might satisfy a judgment above insurance.

Attempt settlement above policy limit
Sometimes a defendant or insurer will negotiate payment above the limit to avoid trial and extra exposure, especially if bad faith could be alleged.

File a lawsuit for the full damage amount
Present your case in court including the excess amount. If successful, the court may award a judgment greater than the insurance payout.

Enforce the judgment
Use collection tools such as wage garnishment, liens on property, bank levies, or disclosure under oath of finances to satisfy the judgment.

What If the Defendant Cannot Pay Beyond Their Insurance

If the defendant lacks assets or financial means, recovering the excess may prove difficult. Some common obstacles include

The defendant may declare bankruptcy, which can discharge certain judgments.
The defendant may have few accessible assets or protected property.
Collection may yield only partial recovery over time.

Because of these challenges, the practicality of collecting the excess matters just as much as winning the judgment.

Negotiating Settlements Above Insurance Limits

Yes, you can negotiate settlements above the insurance cap. Whether the other party agrees depends on their willingness to pay out of pocket, whether the insurer fears liability for bad faith, the strength of your legal case, and the credibility of your evidence. Creative settlement structures such as payment plans may also bridge the gap.

A skilled attorney can explore all possible coverage sources, structure demands strategically, and apply pressure when necessary to reach a fair result.