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(707) 422-1202
SPEAK TO ATTORNEY NOW(707) 422-1202
Speak To Attorney Now
(707) 422-1202 SPEAK TO ATTORNEY NOW(707) 422-1202
Understanding California automobile insurance policies is essential—not just to stay legal, but to protect yourself financially in case of an accident. Many drivers don’t realize how quickly insurance limits can be maxed out, especially when multiple people are injured. That’s why knowing the difference between per person, per occurrence, and aggregate limits could make or break your financial future.
In California, the law mandates that every driver carry at least the following minimum liability coverage:
While these amounts meet the legal requirements, they may not be enough if you’re involved in a serious accident. That’s why it’s critical to understand how your insurance policy works—and when you might need legal help.
An aggregate limit is the total amount your insurance policy will pay out over the course of a policy period, typically one year.
Example: If your policy has a $1,000,000 aggregate limit and you’re in two accidents—one in January with $800,000 in damages and another in July with $500,000 in damages—your insurance will only pay $200,000 toward the second accident. Why? Because you’ve already used $800,000 of your $1,000,000 limit.
A per occurrence limit is the maximum your policy will pay for a single accident, regardless of how many people are involved or the extent of the damage.
Example: Let’s say your policy has a $300,000 per occurrence limit. If you cause a 10-car pile-up that results in $1,000,000 in total damages, your policy will only pay a maximum of $300,000. That amount may be split among multiple injured parties based on the insurer’s discretion.
A per person limit caps the amount your policy will pay to any single individual injured in an accident.
Example: In the same 10-car pile-up, two people suffer major injuries with medical bills of $300,000 each. If your per person limit is only $50,000, then each of those individuals can only recover up to $50,000 from your policy—regardless of their actual losses.
Insurance companies are in business to protect their own bottom line, not necessarily to fully compensate accident victims. When insurance limits are too low, the injured party may seek damages directly from your personal assets—or you may not get enough to cover your own medical bills if you’re the victim.
This is where having a knowledgeable injury attorney can make a major difference.
If you’ve been injured in a car accident in Sacramento, don’t go up against the insurance companies alone. Even if you’re unsure who was at fault or didn’t collect all the right information at the scene, The Choyce Law Firm can help.
Our experienced legal team knows how to navigate complex personal injury claims, negotiate with insurers, and secure the maximum payout available for your damages.
One of the best ways to protect yourself after an accident is to get trusted legal representation. At The Choyce Law Firm, our Sacramento injury attorney has years of experience handling auto accident claims—and we don’t get paid unless we win your case.
Call us today at (916) 306-0636 for a FREE consultation.
We’ll handle the legal burden so you can focus on healing.