What is a Policy Limits Settlement in Personal Injury Cases?
If you’ve been injured in an accident and are pursuing compensation, you might have heard the term “policy limits settlement.” But what exactly does it mean, and why is it important in personal injury cases?
At OCLA Law, we often help clients understand this concept and its impact on their potential recovery.
Understanding Policy Limits
Every insurance policy, whether it’s auto, homeowners, or any other type of liability insurance, comes with coverage limits. These limits represent the maximum amount the insurance company will pay out in the event of a claim. For instance, in a car accident, if the at-fault driver’s insurance policy has a bodily injury coverage limit of $100,000, that’s the maximum amount the insurance will cover for injuries.
What is a Policy Limits Settlement?
A policy limits settlement happens when the insurance company agrees to pay out the maximum amount available under the at-fault party’s insurance policy. This often occurs in cases where the injuries are severe, and the victim’s damages (medical bills, lost wages, pain and suffering) exceed or nearly reach the policy’s limit.
For example, if you’re injured in an accident and the at-fault driver has a $100,000 insurance policy, a policy limits settlement would mean the insurer agrees to pay that full $100,000.
Why Policy Limits Matter
In some cases, the policy limits can be a critical factor in determining how much compensation you ultimately receive. If your damages exceed the policy limits, recovering additional compensation can be challenging. You may need to explore other avenues, like suing the at-fault party personally or seeking compensation through your own insurance if you have underinsured motorist coverage.
How an Attorney Helps with Policy Limits
Insurance companies don’t always offer the policy limits right away, even if your damages clearly exceed that amount. They may try to argue that your injuries aren’t severe enough or that you’re partially at fault. This is where having an experienced attorney becomes essential. We know how to build a strong case, negotiate with the insurance company, and push to get our clients the compensation they deserve.
What to Do If Your Injuries Exceed the Policy Limits
If your damages surpass the policy limits, it doesn’t necessarily mean you’re out of options. An experienced personal injury lawyer can help explore alternative ways to secure additional compensation, such as:
- Underinsured Motorist Coverage: If you have this type of insurance, it can cover the gap between the at-fault driver’s policy limits and your actual damages.
- Pursuing the At-Fault Party’s Personal Assets: In some cases, we can pursue a lawsuit directly against the responsible party’s personal assets if they have the means to pay beyond their insurance coverage.
Navigating the complexities of insurance settlements can be overwhelming, especially when dealing with serious injuries. A policy limits settlement can be an important step toward getting the compensation you deserve, but it’s not always straightforward. Personal Injury Lawyer Ryan Maughan and our team are here to help you understand your options and fight for the best possible outcome in your case.
If you have questions about policy limits or need help with your injury claim, contact us today for a free consultation. We’re here to guide you through every step of the process.
