Is my insurance company allowed to put a cap on my insurance settlement?

UPDATED: Sep 30, 2022

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Is my insurance company allowed to put a cap on my insurance settlement?

My insurance company says they can only
give me so much amount of money even
though I deserve more. People have told
me they cannot do this and that if I
got a lawyer I could fight for more
money. Which is true?

Asked on February 7, 2017 under Accident Law, Wisconsin


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

An insurer only has to pay up to the policy limit--they are not obligated to pay any more than the maximum amount in the policy for these circumstances. If you were injured by another, at-fault driver (you can only sue an at-fault driver) and the amount of your medical costs, property (e.g. car) damages, lost or reduced wages, "pain and suffering," etc. exceeds the insurance limit: you can sue that other driver (not the insurer) for the additional money, provided you did not sign anything (e.g. a settlement or release) in which you contactually gave up your right to sue or agreed to not sue.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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