How Insurance Policy Limits Affect Legal Cases
How Insurance Policy Limits Affect Personal Injury CasesPeople carry various types of insurance to help protect them from the financial costs of the unexpected. Auto insurance can help cover the cost of car damages and medical bills, for example. What many people don’t realize is that most coverage is subject to insurance policy limits. A policy limit is the maximum amount that an insurance company will pay out under the policy, even if the damages/costs exceed that limit. Insurance companies set policy limits to 1) limit their financial liability in the event of an incident and 2) be able to provide affordable coverage for policy owners. How Policy Limits Can Affect A Personal Injury Case In a personal injury case, the defendant’s insurance company will pay out under the policy if the plaintiff is successful. What many people are surprised to learn is that those payouts have a cap, due to the insurance policy limits. This leads to many instances where the defendant’s insurance coverage is not enough to cover the total cost of the damages suffered by the plaintiff. Fortunately, victims do have alternative options that can help them cover the costs of damages, beyond what is provided by the defendant’s insurer. Alternatives To Explore For Help Covering Accident Damages When medical bills and damages exceed the amount recoverable due to policy limitations, victims may be able to secure compensation by other means, such as:
- Health Insurance Coverage
- Medical Provider Negotiations
- Underinsured or Uninsured Motorist Coverage.