How Does Insurance Policy Limits Affect My Case

The State of Louisiana requires by law that every person who drives a vehicle carry insurance. The limit of an insurance policy means the maximum amount insurance companies will pay in the event of an accident.

Insurance Policy

How does it work?

If a lawsuit being brought up and the plaintiff’s attorney is successful, the defendant’s insurance company will have to pay for the damage to property and personal injury incurred. Many times, clients are not familiar with their personal insurance policy limits and what can or cannot be claimed. Policy limits, specify a maximum dollar amount per accident. This limit is the maximum amount the insurance company is responsible to pay per accident, regardless of the amount of damage and injury to a person or property.

How can it affect my case?

The damages incurred can exceed the amount of the insurance policy. It is the insurance company’s job to limit their liability. Hence, it is standard practice to negotiate with the insurance company in order to recover full compensation for damages and injuries.

The problem with policy limits

Most states minimum insurance requirement barely cover the automotive end of an accident. If a client is seriously injured in an accident and ends up in the hospital, their injuries could easily surpass the policy limits of the responsible party in a matter of hours or days. This is frustrating to both the claimant and his attorney, as it may be difficult to recover actual damages. Unfortunately, many consumers do not understand their auto insurance policy limitations, and can literally lose their life savings, home and future earnings by not carrying sufficient insurance. In many cases, the injured seems to suffer the most, as well as bear the loss.

How to get more than Insurance limit

a. Hire a car accident attorney who will help to build a strong case to secure your recovery. The attorney can sue the insurance company on grounds of bad faith. They can force the insurance policy to pay for all the medical bills, and in some instances, even if they extend beyond the policy limits.
b. You can use your Health Insurance Coverage to pay your medical bills.
c. Underinsured Motorist Coverage can come to aid in the event of exhaustion of the policy limits of the defendant.
In short, your case can be severely financially affected if you are not aware of your insurance limits.
The insurer’s obligation is to defend their client from lawsuits for covered losses. when you are liable for another’s loss and, if necessary to pay any claims, all up to the coverage limits. But insurance companies have a right to:
1. Satisfy themselves that the loss is one they have to pay and defend;
2. Only pay if liability is in fact proven or established;
3. Only pay the appropriate, legally justified damages for the claim.
This can lead to a long settlement process, If you are the injured party, with serious injuries that could lead to devastating financial losses it is important you seek legal representation. Give us a call for a free evaluation of your case.