When an adjuster tells you the insurance policy is “maxed out” or that your claim has “hit the limits,” it feels like the bottom drops out. Your medical bills keep growing, you’re still hurting, and now you’re wondering who’s going to cover the rest. If you’re facing that kind of stress after a crash in Arizona, you’re not alone, and you’re not out of options. In this guide, we break down what policy limits really mean, why so many claims go over them, and the paths you may still have to get the compensation you need.
What Are Policy Limits (And Why They Matter So Much After a Serious Crash)?
When you buy car insurance in Arizona, you’re really buying a promise: up to a certain dollar amount, your insurance company will step in and pay for the harm you cause. That dollar amount is your policy limit. The same idea applies when you’re hurt by another driver. Their policy limits decide how much their insurance will put on the table for your injuries and losses.
How Auto Insurance Policy Limits Work in Arizona
Most Arizona policies break liability coverage into a few key buckets:
- Bodily injury liability per person – the maximum the insurer will pay for injuries to one person in a single crash.
- Bodily injury liability per accident – the total the insurer will pay for all injured people combined in that crash.
- Property damage liability – the limit for damage to cars, fences, buildings, or other property.
Arizona law sets minimum required liability limits under A.R.S. § 28-4009, which currently require drivers to carry at least $25,000 for one injured person, $50,000 per accident, and $15,000 for property damage.
In real life, those limits often barely cover an ER visit, a few tests, and some basic follow-up care after a moderate crash. They were written into law years ago, when medical costs and car repair costs were very different from what they are today.
What Does “Exceeding the Policy Limits” Actually Mean?
When someone says a claim “exceeds the policy limits,” they’re describing a gap between what the insurance company will pay and what your injuries actually cost or what your claim is worth. Each policy has a set maximum for injuries to one person, for all injuries in the accident, and for property damage. Once the insurer hits those numbers, the payments stop. They don’t raise the limit because the bills are higher or the injuries are worse.
What Happens Legally When a Claim Exceeds the At-Fault Driver’s Insurance Limits?
Legally, insurers are responsible for defending their customer and paying up to the policy limit, and nothing more. Arizona law doesn’t allow you to sue the insurance company for not selling enough coverage. Your actual claim is against the person who caused the crash and any other party who may share responsibility.
From your perspective as an injured person, policy limits matter because they decide how much money is actually available from that insurance company. You might have $80,000 in medical bills and lost wages, but if the at-fault driver only has $25,000 in coverage per person, that insurer is generally not required to pay more than $25,000 on that claim. And it happens more often than people think.
How Often Do Car Accident Claims Exceed Insurance Limits?
In Arizona, many drivers carry only the minimum required coverage, while the real cost of medical care, imaging, surgery, and long-term treatment keeps climbing. A single ER visit with CT scans can absorb most of a $25,000 limit. Add hospitalization, follow-up care, or multiple injured people sharing the same “per accident” pool, and the policy can be drained almost immediately.
Certain situations tend to push cases over the limit:
- Emergency care with imaging, such as CT scans, MRIs, or multiple X-rays
- Hospitalization, surgery, or ICU care, even for a short stay
- Rehab or long-term physical therapy that continues for weeks or months
- Specialist treatment, including orthopedics, neurology, or pain management
- Time off work, reduced hours, or job restrictions caused by the injury
- Multiple injured people drawing from the same “per accident” policy limit
- Future medical needs such as additional surgery, injections, or ongoing pain management
- Long-term limits on your ability to work and earn a living.
If you see yourself in several of these, there’s a strong chance your claim may be worth more than the at-fault driver’s policy can cover. And when the coverage runs out, the next question is crucial: who pays the rest?
Who Pays the Damages Beyond the Policy Limits?
Once the policy is exhausted, the remaining compensation has to come from somewhere. Depending on the circumstances, several paths may be available:
1. Look for Additional Insurance Policies
Many drivers and companies carry extra layers of insurance that don’t appear on the initial police report. Examples include:
- Umbrella policies: These provide high-limit coverage that sits above auto insurance. They’re common among homeowners and higher-income drivers.
- Household policies: Sometimes, another policy in the at-fault driver’s household may offer coverage, depending on the facts and policy language.
- Commercial policies: If the crash involved a delivery driver, rideshare driver, company car, or commercial truck, higher-limit policies often apply.
- Another liable party.
2. Check for Additional At-Fault Parties
A surprising number of crashes involve more than one responsible party. Some common examples include:
- Employer liability: If the driver was working at the time of the crash, driving a company car, making deliveries, or performing job duties, the employer’s commercial insurance may apply.
- Vehicle owner responsibility: If someone loaned their vehicle to the at-fault driver, their policy may provide additional coverage under Arizona’s “permissive use” rules.
- Bars or restaurants in drunk driving cases:
- Arizona’s dram shop laws allow claims against bars or restaurants that overserve visibly intoxicated customers who later cause a crash.
- Product defects or road hazards: Faulty brakes, blown tires, or poorly designed intersections may introduce additional defendants. These cases are more complex but can significantly expand available coverage.
Tracing every responsible party is a crucial step, especially when injuries are severe and the primary policy is small.
3. Your Own Insurance Coverage
When the at-fault driver doesn’t have enough coverage, your own insurance may step in.
- Underinsured Motorist (UIM) coverage: UIM helps when the other driver’s liability limit cannot cover your losses. Arizona allows you to make a UIM claim once the damages exceed the at-fault party’s coverage. Stacking may apply depending on the policy and number of vehicles, but not all Arizona policies allow it.
- Medical Payments (MedPay): MedPay can cover medical bills regardless of fault. It’s often used to soften the blow of immediate expenses.
- Health insurance: While it does not replace the at-fault driver’s responsibility, health insurance can reduce what you owe up front.
With so many potential paths, injured people often wonder which option applies to them. The answer depends on the details of the crash, the policies involved, and the financial situation of the person who caused the harm.
4. Consider Collecting from the Driver Personally (When It Makes Sense)
If the at-fault driver has meaningful assets, Arizona law allows injured people to seek the remaining damages through:
- wage garnishment,
- liens against real estate, or
- levies against bank accounts.
However, many drivers who carry minimum insurance have limited assets. Pursuing them personally may not lead to an actual recovery and can take considerable time. This decision should be made with clear information about the driver’s financial circumstances and a realistic view of the outcome.
5. Rare Situations: Bad Faith by the Insurance Company
In limited circumstances, the insurer’s conduct becomes a separate issue. If an insurance company unreasonably refuses to settle a claim within policy limits and exposes their customer to an excess judgment, that decision may open the door to a bad-faith case. These claims are complex, fact-dependent, and require close legal analysis. While they don’t apply to every case, they can offer a path to compensation when the insurer mishandles a valid claim.
With these options in mind, the next step is understanding which path is most realistic for your situation. Identifying other policies and parties takes experience and a careful review of the facts, which is why many people choose to involve a lawyer early on.
Why It Helps to Talk With a Car Accident Lawyer Before You Accept a “Policy Limits” Offer
When an adjuster says, “This is the full policy limit,” it’s easy to feel like you should take the check before it disappears. The reality is that signing a release too quickly can close the door on additional coverage, other liable parties, and future claims tied to your injuries. A short consult can help you avoid giving up money you may desperately need for ongoing treatment or lost income.
Many people assume there’s no point in calling a lawyer once the policy is maxed out. In truth, limits cases are where legal help often matters most. Even if the total insurance available is fixed, how much ends up in your pocket depends on how medical bills, liens, and multiple insurers are handled. Timing also matters. Arizona’s deadlines can be strict, and evidence doesn’t wait. Talking to an attorney early protects options you may not even know exist.
What We Actually Do in These Cases
In policy-limit situations, our work focuses on finding every dollar of coverage and protecting your recovery. Our car accident legal team will:
- review all available insurance policies, including the at-fault driver, any employer or commercial coverage, umbrella policies, and your own UM/UIM;
- calculate the full value of your damages, including future medical needs and lost income;
- negotiate with liability insurers, UIM carriers, medical providers, and lien holders so more of the settlement stays with you;
- advise on whether pursuing the driver personally makes sense based on their assets and Arizona law.
The goal is simple: stretch limited coverage as far as possible and protect your future, especially when the injuries are serious, and the insurance isn’t enough.