Typically, an auto insurance company will not pay out more than the per accident coverage limits outlined in the policy, even if many people are injured and the coverage is insufficient. These limits are set when the policy is purchased and represent the maximum amount the insurance company is obligated to pay for a single accident.
In cases where the injuries and damages exceed the policy’s per accident coverage limits, the injured parties may not receive full compensation from the insurance company. If the policyholder’s liability exceeds their coverage limits, they might be personally responsible for the remaining costs. This can include medical expenses, property damage, and any legal fees if the matter goes to court.
In some situations, the injured parties might seek compensation through their own insurance policies, such as underinsured motorist coverage, if they have it. This type of coverage is designed to protect individuals in situations where the at-fault party’s insurance is not sufficient to cover all damages.