When filing a car accident claim, understanding your insurance limits is crucial because they represent the maximum amount your insurer will pay for a covered loss. If damages from an at-fault accident exceed your policy’s limits, you may be personally responsible for the remaining costs.
Your insurance limits define how much your insurer will pay after a crash — and they can make or break your claim. If your damages exceed those limits, you could be left paying the difference. Knowing your policy’s limits — and how they interact with the other driver’s — can protect your rights and your recovery.
If you were injured in a collision and aren’t sure what your policy covers, a Long Island car accident lawyer at Chaikin Trial Group can help you understand your insurance coverage limits and whether you can pursue compensation beyond the at-fault driver’s policy.
What’s in This Guide
- What Are Insurance Limits?
- Why Insurance Limits Matter After a Crash
- How Car-Accident Insurance Limits Are Structured
- Key Questions to Ask After an Accident
- Real-World Considerations & Practical Tips
- How Chaikin Trial Group Can Help
Case Today (212) 977-2020
What Are Insurance Limits?
Insurance limits are the maximum amounts your insurer will pay for a covered claim under your policy. If damages from a car accident exceed those limits, you may need to pay the remaining costs yourself.
Liability limits are often written as three numbers — for example, $50,000 / $100,000 / $30,000 — which represent:
- $50,000: The maximum your insurer will pay for bodily injury to one person.
- $100,000: The total your insurer will pay for all injuries in a single accident.
- $30,000: The maximum for property damage per accident.
These numbers reflect how coverage limits work in car insurance — and knowing them helps you understand whether your current coverage is enough.
Common Coverage Limits Explained
You may see terms like 25/50/10 (New York’s minimum), or higher options like 100/300/100 or 250/500/100. Here’s what they mean:
| Coverage Type | What It Covers | Example Limit | Explanation |
| Bodily Injury Liability | Medical bills, pain and suffering for others you injure | $100,000 / $300,000 | $100K per person, $300K per accident |
| Property Damage Liability | Damage to other vehicles or property | $50,000 | Covers repairs for others’ vehicles |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers you when the at-fault driver has no or insufficient insurance | Matches your chosen limit | Helps when the other driver’s policy is too low |
| Collision Coverage | Damage to your vehicle in an accident | Actual cash value (minus deductible) | Covers your own car regardless of fault |
| Comprehensive Coverage | Theft, fire, weather, vandalism | Actual cash value (minus deductible) | Covers non-collision damage |
| Personal Injury Protection (PIP) | Medical bills and lost wages regardless of fault | Fixed per person | Required under NY’s no-fault system |
If you’ve ever wondered what the 50/100/50 rule for liability insurance means — it’s simply the same breakdown: per-person, per-accident, and property-damage caps.
Why Insurance Limits Matter After a Crash
Understanding your coverage isn’t just about numbers — it’s about protecting yourself.
- They determine how much compensation you can receive.
If the at-fault driver’s policy limits are low (like 25/50/10), even a moderate accident can exceed that amount. A car accident lawyer in Long Island can help you explore whether you can sue for more than the insurance limits.
- They dictate when you’ll rely on your own policy.
If your medical expenses exceed the at-fault driver’s limits, your Underinsured Motorist (UIM) coverage can fill the gap. Wondering what does underinsured mean? It refers to drivers whose policies don’t fully cover the damages they caused.
- They influence your settlement options.
Insurance companies rarely pay beyond the stated policy limit. A personal injury lawyer on Long Island, New York can investigate additional coverage sources (like employer or umbrella policies) when damages exceed those limits.
- They affect your long-term recovery.
Your attorney will calculate how much coverage you need for medical bills, rehabilitation, and pain and suffering — helping you understand how much car insurance coverage you actually need to be protected.
Key Questions to Ask After an Accident
If you’ve been in a crash, ask these before moving forward with your claim:
- What are the at-fault driver’s liability limits?
- Do I have uninsured motorist coverage, and how much is it?
- Will my PIP or MedPay cover all my expenses?
- Are there any sub-limits that might reduce my payout?
- Has the insurer offered to “tender” the policy limit (offer the full payout)?
- Can I sue beyond the insurance policy limit if my damages are severe?
Real-World Considerations & Practical Tips
Don’t rely on state minimums.
New York’s minimum coverage (25/50/10) might meet legal requirements but won’t come close to covering medical bills in a serious accident.
Choose the right level of protection.
If you’ve ever asked, “Is 100/300/100 good for car insurance?” — it’s better than the minimum, but for full protection, consider higher limits like 250/500/100.
Know when full coverage is worth it.
Drivers often ask, “Is it worth getting full coverage car insurance?” or “At what point is full coverage not worth it?” Generally, full coverage is recommended if your vehicle’s value and potential repair costs outweigh the premiums.
Understand your coverage mix.
Not sure how collision coverage differs from comprehensive? Collision pays for crash-related damage; comprehensive covers non-collision losses (like theft or fire).
Review your premiums.
If you’ve wondered “Why is my car insurance over $400?”, it may reflect your policy limits, vehicle value, and driving record. A higher limit offers better protection but can raise your premium.
Know the difference between coverage limits and premiums.
Your coverage limit is the maximum payout; your premium is what you pay for that protection. A Long Island car accident attorney can help you balance both based on your risk and budget.
Act fast when damages exceed insurance limits.
Once an insurer tenders its limit, you may need to explore bad-faith claims or third-party liability to recover the rest.
How Chaikin Trial Group Can Help
At Chaikin Trial Group, our attorneys treat insurance limits as a strategic opportunity, not a barrier.
Our Long Island car accident lawyers:
- Investigate every available policy, including employer, umbrella, or rideshare coverage.
- Push insurers to disclose policy limits early, so you know what’s available.
- Build strong, evidence-backed cases that maximize your settlement, even when coverage is limited.
- Handle complex bad-faith insurance disputes when companies delay or deny payments.
Our goal is simple: to secure every dollar available for your recovery — and to make sure insurance companies don’t take advantage of you. Contact us now.
