Policy Limits Explained: What They Are and Why They Matter After a Crash

By Eugene Bruno on June 27, 2025

When you’re injured in a car accident, one of the most important questions is: How much insurance coverage is available? The answer to that question determines everything, from how quickly your case is resolved to how much you will ultimately recover. It all comes down to what’s known as policy limits.

Understanding Policy Limits

A policy limit is the maximum amount an insurance company will pay for injuries caused by the at-fault driver.

It doesn’t matter how severe your injuries are — if the at-fault driver only carries the minimum coverage, the insurance company will never pay more than that limit, even if your medical bills or lost wages are much higher.

California’s Raised Premiums

As of January 1, 2025, California raised its minimum auto liability insurance limits for the first time in over 50 years. The new law increased the minimum coverage to $30,000 per person and $60,000 per accident. This replaced the outdated $15,000/$30,000 minimums that have long failed to reflect the real cost of recovering from an injury.

The change is a step in the right direction, but it still does not come close to covering the true value of a serious injury claim. That’s why knowing the available policy limits early in your case is so important. It sets the framework for your claim.

If the at-fault driver carries only the minimum amount, we begin looking for other coverage options — including umbrella policies, employer insurance, or your own underinsured motorist (UIM) coverage.

Likewise, if our investigation uncovers a commercial vehicle or a driver operating within the scope of work, there could be higher policy limits or multiple layers of coverage available.

The Role of an Experienced San Diego Car Accident Lawyer

At Eugene Bruno & Associates, we investigate to uncover every possible insurance policy that might apply. We contact insurance carriers early, demand disclosure of policy limits, and push for fast verification.

Once we understand the limits, we can tailor your case strategy around maximizing every available dollar. If that means presenting medical evidence to justify the full policy payout, negotiating liens, or moving quickly to resolve the claim before policy funds disappear, we do it.

We’re proud to say that in 85% of our auto injury cases, we recover the full policy limits — and in many cases, we go beyond that by finding secondary policies or stacking coverage. This level of recovery doesn’t happen by accident. It’s the result of experience, strategy, and a firm-wide commitment to relentlessly advocating on your behalf.

We also believe in keeping our clients informed. We explain what policy limits are, how they apply to your case, and how they determine the right approach to settlement negotiations or litigation.

Eugene Bruno & Associates Can Help

When you know what’s on the table, you can make confident decisions — and that’s what we’re here for. Knowing the policy limits is the key to building a smart, aggressive strategy.

At Eugene Bruno & Associates, this is the first step in making sure you get everything you’re entitled to. Reach out to our experienced San Diego car accident lawyers at 1-888-BRUNO-88 (1-888-278-6688) for a case consultation.