How Do Policy Limits Affect Car Accident Settlements in Louisiana?

What Are Insurance Policy Limits?

After a crash in Louisiana, your entire financial future might depend on something buried deep in an auto insurance contract: policy limits. These are the maximum amounts an insurance company will pay, and they can make or break your settlement. In a fault-based state like Louisiana, the at-fault driver’s insurance is typically responsible for your damages, but every policy has a cap. Once that cap is reached, the rest becomes your responsibility unless other coverage applies.

When people call our office, they usually focus on two things: how badly they are hurt and how clearly the other driver was at fault. That makes sense. What often comes as a shock is learning there is a third factor that can have just as much impact on their recovery, sometimes more. That factor is how much insurance coverage is actually available. If you are not prepared for that reality, it can dramatically change what you are able to recover, no matter how serious the injuries are or if the other driver admitted fault at the scene.

That surprise is exactly why understanding insurance policy limits matters from the very beginning.

A trusted New Orleans car accident lawyer from Loyd J Bourgeois Injury & Accident Lawyer (LJBLegal) can help you understand how these limits affect your case and what options you have to pursue the compensation you need.

Here is an example of typical policy limits in Louisiana auto insurance:

Coverage Type	Limit Description
Bodily Injury	$15,000 per person / $30,000 per accident
Property Damage	$25,000 per accident

The difference between property damage and bodily injury matters when you’re trying to understand what those limits actually cover.

With the rising cost of car insurance, many people shop around looking for the best deal. It’s understandable. And when someone finds a lower rate, it feels like a win. But often, that savings comes from lowering coverage limits or dropping important protections like underinsured motorist coverage. These choices can save money upfront, but they may leave you financially exposed after a serious crash. What looks like a good deal today could cost you everything tomorrow if the other driver doesn’t have enough insurance to cover your injuries.

How Do Policy Limits Cap Settlements?

Policy limits are like a ceiling that the insurance company won’t go above, no matter how badly you’re hurt. In serious crashes, it’s common to hit that ceiling fast. When that happens, the insurance company pays no more, even if your bills keep piling up.

This is known as the “policy limit problem.” Imagine your damages total $200,000, but the driver who hit you only has $15,000 in bodily injury coverage. That’s all their insurer will pay. The rest? You either pay it yourself or try to find other ways to recover.

This is the point where many injured people realize that fault and injury severity alone do not control the outcome.

• Louisiana requires just $15,000 in coverage per person
• Medical bills and lost wages often exceed this quickly
• Victims may need to explore lawsuits or other policies
• Multi-vehicle and severe injury cases often hit caps early

According to recent settlement data in Louisiana, many claims for moderate injuries fall between $14,000 and $28,000. But that doesn’t help when a crash leads to permanent damage or long-term disability.

Types of auto insurance coverage can provide a clearer picture of what’s available and where your case fits in. Whether you’re looking at liability, collision, or other coverages, understanding those policies is essential.

That’s why knowing your coverage options and carrying protections like underinsured motorist coverage can make a big difference if you’re seriously hurt in a crash.

What Are Minimum Policy Limits?

In Louisiana, every driver is required by law to carry minimum liability insurance coverage. This is often referred to as a 15/30/25 policy.

These numbers represent the maximum amounts the at-fault or liable driver’s insurance company may pay to people who were injured in the crash. For many serious accidents, minimum coverage won’t come close to matching your total losses, including medical bills and lost income.

• $15,000 for bodily injury or death to one person
• $30,000 for total bodily injury or death to more than one person per accident
• $25,000 for property damage per accident

This is the minimum you must carry to legally drive in Louisiana, but you can choose to purchase more coverage. Many people do, because these limits are considered very low for today’s medical costs. Even minor injuries can lead to emergency room visits, scans, and follow-ups that quickly exceed $15,000 in medical bills alone. And that doesn’t include lost wages or pain and suffering.

Another common misunderstanding is assuming policy limits are guaranteed payouts. They are not. Policy limits are maximums, not automatic payments. Just because the other driver has a $15,000 policy doesn’t mean you automatically receive that amount. You must still prove that your damages justify the full payout. Insurance companies will only pay what you can clearly support with documentation, so proving your medical treatment, lost time from work, and other losses is essential.

Whose Policy Limits Matter After a Louisiana Car Accident?

In most Louisiana car accident cases, two different insurance policies may come into play: the other driver’s policy and your own. Which limits matter depends on who caused the crash and how severe your injuries are.

• The other driver’s policy limits control how much their insurance must pay if they caused the crash.
• Your policy limits matter when the other driver’s coverage is too low or nonexistent, or when you are partly at fault.

Situation	Which Policy Limits Matter
The other driver caused the crash	The other driver’s bodily injury and property damage limits
Your damages exceed the other driver’s limits	Your uninsured or underinsured motorist (UM/UIM) limits
You are partially at fault	Both policies may apply, reduced by comparative fault
The other driver has no insurance	Your uninsured motorist coverage
You caused the crash	Your liability limits protect others, not you

Rule of thumb: The other at-fault driver’s insurance pays first. Your insurance fills the gap only if you bought coverage that applies.

How Are Policy Limits Divided If Multiple People Are Hurt or Multiple Cars Are Involved?

In Louisiana, if more than one person is hurt in a crash, or if several vehicles are involved, the same policy limit has to be shared among all the injured parties. This can lead to tough situations, especially when the at-fault driver has only minimum coverage.

Let’s say the at-fault driver has the required minimum liability coverage: $15,000 per person, $30,000 per accident. If three people in the other car are hurt, the most the insurance company will pay for everyone combined is $30,000. That amount has to be split between all three victims, no matter how serious each injury is.

Here’s how it works:

• $15,000 is the max one person can receive from the at-fault driver’s policy
• $30,000 is the total cap for everyone injured in that crash
• If more than two or more people are injured, they must divide the $30,000 total
• If more than one vehicle is damaged or involved, property damage coverage ($25,000 minimum) is also divided among all affected

This can quickly lead to problems in serious crashes:

• One person with $50,000 in medical bills may still get only $15,000
• Five injured people may each receive far less than what they need
• Multiple cars with major damage may have to split a $25,000 limit

When this happens, your recovery may depend on other options:

• Using your own underinsured motorist coverage
• Looking for umbrella policies or other applicable insurance
• Filing a personal injury lawsuit to try to collect from the at-fault driver directly

When multiple people are hurt, it becomes even more important to work with a legal team that understands how to maximize your share of limited coverage and explore other paths to compensation. The team at LJBLegal knows how to uncover all possible sources of recovery, so you don’t have to face this situation alone.

What Happens When a Claim Exceeds the Policy Limit?

When an insurance claim exceeds policy limits, the insurer pays only up to the coverage maximum, leaving the at-fault driver personally responsible for the rest. Victims may recover the excess by personally suing the driver, using underinsured motorist coverage, checking for umbrella policies, or working with an attorney to explore legal recovery strategies.

Let’s look at Sarah’s case. She’s a schoolteacher from Baton Rouge who suffered a traumatic brain injury when a distracted driver ran a red light. Her medical bills hit $180,000. The other driver? They only had the state minimum: $15,000.

This isn’t rare. Across Louisiana, accident victims like Sarah find themselves with hundreds of thousands in bills and just a sliver of insurance coverage to rely on. Her options were limited: either sue the at-fault driver personally or rely on her own underinsured motorist coverage if she had it.

1. Check your declaration page to see if underinsured motorist coverage applies
2. Consider pursuing the at-fault party’s personal assets
3. Speak with a lawyer about other coverage options
4. Document every expense to support your case value

There are legal strategies that may allow you to recover more than policy limits, but these are complex and require help from an attorney familiar with Louisiana’s specific laws.

How Can You Maximize a Settlement with Low Policy Limits?

If the insurance policy isn’t enough, you’ll need to get creative and strategic. There are ways to boost your total compensation, but they require planning and legal knowledge.

• Use your own uninsured/underinsured motorist coverage
• Tap into household policies that may also apply
• Submit full documentation of every loss, now and future
• Investigate the other driver’s personal or business assets

Documentation matters. Medical records, lost wages, and even future expenses can strengthen your negotiating position. And sometimes, stacking policies from multiple sources can help close the gap. But this isn’t something you should tackle alone. These strategies require legal insight and timing.

How Does Comparative Fault Impact Your Recovery?

Louisiana follows a comparative fault rule. If you’re found partly at fault for your crash, your compensation drops.

This rule can seriously reduce your settlement, especially when dealing with low policy limits. Even if you’re owed more, fault percentages can bring that number down fast. That’s why it’s critical to build a strong case early and avoid letting insurance companies shape the narrative.

• Your payout is reduced by your fault percentage
• Comparative fault applies before insurance limits are considered
• Accurate documentation and witness statements are vital

Fault fights are often where settlements stall or fall apart. A well-documented case can push back against unfair blame and protect your bottom line.

When Should You Talk to a Personal Injury Lawyer?

If you’re facing big medical bills, lost wages, or long-term injuries, and the other driver’s insurance isn’t enough, it’s time to talk to someone who knows how to fight. The lawyers at LJBLegal can help you uncover coverage you didn’t know you had and hold insurance companies accountable. And if the policy limit truly is the most you can recover, we promise to tell you the truth about your situation so you’re never left wondering or misled.

Consult an attorney before settling for the other driver’s policy limit. Early legal advice can protect you from giving up compensation you may still be entitled to.

• Your medical bills are over $10,000
• You’ve missed work or can’t return to your job
• The other driver has minimum coverage
• You’re being blamed for something you didn’t do

Studies show that working with a lawyer often leads to higher settlements, especially in policy limit cases. If your case is serious, don’t leave it to chance.

What Are the Biggest Limitations You May Face?

Louisiana’s low minimum coverage requirement means many drivers are underinsured. If your injuries are serious, that’s going to be a problem. And even if you get a court judgment over the policy limit, collecting the rest is rarely easy. Excess judgments are subject to appeals, delays, and cannot be collected if the other party has no assets to recover from.

• Low policy limits leave large gaps in coverage
• Collecting excess judgments is often difficult
• Insurers may pressure you to settle quickly and cheaply

These aren’t reasons to give up. They’re reasons to act smart and act fast, with the right team behind you.

What Should You Remember About Policy Limits?

If you’ve been hurt in a crash, policy limits matter more than most people realize. They shape your settlement from day one. Louisiana’s minimum limits, $15,000 per person and $30,000 per accident, might sound decent, but they don’t go far in serious cases.

Here’s what you can do:

1. 1. Know your own coverage and ask about UM/UIM policies
   2. Document everything: bills, injuries, missed work

1. Don’t assume the insurance company is on your side
2. Talk to the Metairie car accident lawyers at LJBLegal before accepting any offer

Knowing what insurance coverage applies and how fault plays into your claim gives you the power to push for the compensation you deserve. If you need help with your claim, give us a call at 985-240-9773.

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