Understanding insurance policy limits and what “policy limit settlements” mean for personal injury cases
If you’ve been injured in a car accident, slip and fall, or other incident in California or Washington D.C., you’ll encounter insurance terms that may be confusing. One critical term is “policy limits” or “policy limit settlement.”
In September 2025, HH Law Firm secured multiple policy limit settlements in both Washington D.C. and San Diego, including a serious drunk driving case. But what does “policy limit settlement” actually mean, and why does it matter for your case?
What Are Policy Limits?
Policy limits are the maximum amount an insurance company will pay under a specific insurance policy.
Example: If a driver who caused your accident has auto insurance with $100,000 in liability coverage, that $100,000 is the policy limit. Even if your medical bills, lost wages, and pain and suffering total $200,000, the most that insurance policy can pay is $100,000.
Key Point:
Policy limits represent the ceiling of what insurance will pay—not the starting point for negotiations.
California Minimum Auto Insurance Requirements
As of January 1, 2025, California’s minimum liability insurance is:
- $30,000 for injury/death to one person
- $60,000 for injury/death to more than one person
- $15,000 for property damage
These higher minimums apply as policies renew during 2025 and are scheduled to increase again in 2035 to $50,000 / $100,000 / $25,000. Many California drivers still carry higher limits, commonly:
- $50,000 / $100,000
- $100,000 / $300,000
- $250,000 / $500,000
Some drivers also carry umbrella policies that provide additional coverage beyond their standard auto policy.
Washington D.C. Minimum Auto Insurance Requirements
Washington D.C. requires:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 for property damage
D.C.’s minimums are slightly higher than California’s, but still often insufficient for serious injury cases.
What Does “Policy Limit Settlement” Mean?
When a personal injury attorney says they “secured a policy limit settlement,” it means they obtained the maximum amount available under the at-fault party’s insurance policy.
Why This Matters:
1. Maximum Recovery from That Policy You’ve extracted every available dollar from that insurance source. The insurance company cannot pay more, even if your damages exceed the policy limit.
2. Strong Legal Representation Insurance companies don’t voluntarily pay policy limits. Reaching policy limits typically requires:
- Thorough documentation of injuries and damages
- Strong evidence of liability
- Effective negotiation
- Sometimes litigation pressure
3. May Not Cover All Damages If your medical bills, lost wages, and other damages significantly exceed the policy limit, you may need additional sources of compensation.
HH Law Firm’s September 2025 Policy Limit Settlements
In September 2025, HH Law Firm secured multiple policy limit settlements for clients:
Washington D.C. Cases
The firm obtained policy limit settlements in Washington D.C., representing maximum recovery under available insurance policies.
San Diego Drunk Driving Case
HH Law Firm secured a policy limit settlement in a serious drunk driving case in San Diego, ensuring the client received the maximum available compensation under the at-fault driver’s insurance.
These outcomes demonstrate the firm’s ability to build compelling cases and negotiate effectively with insurance companies across multiple jurisdictions.
California-Specific Considerations
Why You Need an Attorney for Policy Limit Cases
Insurance companies don’t advertise when additional coverage exists. They focus on minimizing payouts. An attorney:
Investigates All Coverage
- Searches for umbrella policies
- Identifies additional liable parties
- Determines if commercial policies apply
- Reviews your own UIM/UM coverage
Documents Damages Thoroughly
- All current and future medical expenses
- Lost wages and diminished earning capacity
- Pain and suffering
- Loss of quality of life
Negotiates Strategically
- Presents compelling demand packages
- Uses litigation leverage when necessary
- Protects your interests when multiple claimants compete for limited funds
Protects You From Mistakes
- Prevents early settlements that undervalue claims
- Ensures you don’t sign away rights
- Handles all insurance communications
How HH Law Firm Approaches Policy Limit Cases
HH Law Firm serves personal injury clients throughout California and Washington D.C. The firm’s approach includes:
No Fees Unless You Win: Contingency fee representation means you pay nothing unless the firm recovers compensation for you.
Comprehensive Investigation: The firm identifies all available insurance coverage, not just obvious sources.
Accessible Representation: HH Law Firm meets clients in hospitals and homes when travel is difficult due to injuries.
Multilingual Service: Available in English, Arabic, and Spanish (عربي بنحكي إحنا | Se Habla Español).
Proven Results: Multiple policy limit settlements in September 2025 alone, including complex drunk driving cases.
Common Questions About Policy Limits
Q: How long does it take to get a policy limit settlement? It varies from weeks to months depending on injury documentation, insurance responsiveness, and case complexity.
Q: Do I have to go to court? Most policy limit settlements resolve without filing lawsuits, though sometimes litigation is necessary to get the insurance company’s attention.
Q: How do I find out the at-fault driver’s policy limits?
Pre-litigation, insurers in California generally are not required to disclose limits. After a lawsuit is filed, the defense must disclose the policy and its limits in discovery under Code of Civil Procedure § 2017.210. Strategically using time-limited settlement demands (CCP §§ 999–999.5) can also pressure an insurer to tender limits when the facts warrant it.
Take Action After an Injury
If you’ve been injured in California or Washington D.C.:
- Seek medical treatment immediately – Your health comes first, and medical documentation is crucial
- Don’t discuss the accident with insurance adjusters – Let your attorney handle communications
- Preserve evidence – Photos, witness information, police reports
- Consult an attorney quickly – Early investigation identifies all available coverage
- Review your own insurance – Check your UIM/UM coverage; consider increasing it
Contact HH Law Firm
Free consultations for personal injury cases in California and Washington D.C.
Phone: 1-833-359-6116
Website: www.hhlawfirm.law
Locations: Irvine, CA | Serving all of California and Washington, D.C.
Languages: English, Arabic, Spanish
Practice Areas:
- Car accidents, truck accidents, motorcycle accidents
- Slip and fall accidents
- Dog bites and animal attacks
- Catastrophic injuries
- Wrongful death
- Drunk driving accidents
- Civil rights violations
No recovery, no fee. We come to you in hospitals and homes.
HH Law Firm is a professional law corporation serving personal injury clients throughout California and Washington D.C. The firm secured multiple policy limit settlements in September 2025, including serious injury cases in Washington D.C. and San Diego.