Auto accidents that go beyond insurance policy limits are rare but can be very costly. If you’ve been in an accident that wasn’t your fault, it’s key to understand your insurance. This is to protect your financial well-being. I’ll show you how to grasp your policy limits, figure out what coverage you need, and find ways to get extra damages.
Key Takeaways
- Policy limits are the maximum amount an insurance company will pay for damages caused in an accident.
- Commercial truck accidents often result in severe damages due to the size and weight of the vehicles.
- Umbrella insurance policies can provide additional coverage when damages exceed standard policy limits.
- Victims may be able to seek compensation from multiple liable parties, such as the at-fault driver and an auto manufacturer.
- Consulting a personal injury attorney can help navigate the complexities of insurance claims and legal procedures.
What Are Insurance Policy Limits?
Insurance policy limits are the highest amounts an insurance company will pay for covered damages or losses. These limits apply to both regular car accidents and those involving commercial vehicles, like trucks. Knowing your policy limits is key, as they greatly affect the compensation you get after an accident.
Policy Limits Explained
In car insurance, liability coverage limits are shown as three numbers, like $50,000/$100,000/$30,000. These numbers represent bodily injuries per person, per accident, and property damage per accident. For home insurance, personal property coverage limits are usually 50% of the dwelling coverage limit. Personal liability coverage options range from $100,000 to $500,000.
If damages or losses are more than your policy limits, you must pay the extra yourself. To avoid this, some people get an umbrella policy. It offers extra liability protection beyond regular policy limits.
Choosing policy limits depends on several factors. These include the value of your assets, how much risk you can handle, and your budget. Knowing your policy limits is essential to ensure you have the right coverage for accidents or incidents.
How Often Do Auto Accident Settlements Exceed Policy Limits?
Auto accident settlements going over the at-fault driver’s policy limits are more common than you might think. A 2014 study by the Insurance Research Council found this happens about 4% of the time.
In Missouri, the minimum car insurance is $25,000 for bodily injury per person, $50,000 for all injuries in an accident, and $25,000 for property damage. Missouri also requires $25,000 per person and $50,000 per accident for uninsured motorist coverage.
New York’s basic No-Fault or Personal Injury Protection (PIP) insurance covers up to $50,000 per person for medical and other accident-related costs. The liability insurance minimums in New York are $25,000 for any injury, $50,000 for injury leading to death, and $100,000 for injuries leading to death of two or more people. There’s also $10,000 for property damage in any collision.
With these low policy limits, it’s common for accident victims’ damages to go beyond what’s covered. In such cases, looking into other ways to get excess damages is key. This might include suing other parties or using an umbrella policy.
| State | Minimum Car Insurance Requirements | Statute of Limitations |
|---|---|---|
| Missouri |
|
5 years from the date of the accident or the date when injuries were discovered |
| New York |
|
3 years from the date of the car accident to file a personal injury lawsuit |
Knowing what leads to these situations and the legal paths to take can guide your decisions. By understanding auto accident settlements and policy limits, you can get the compensation you deserve.
“Uninsured motorists are entitled to Missouri’s uninsured motorist coverage, protecting individuals injured by drivers with no insurance.”
Collecting Excess Damages: Exploring Your Options
If your losses from an auto accident are more than the at-fault driver’s insurance can cover, you have options. You can sue additional defendants, like the driver’s employer or others involved. This legal step can help you get more compensation.
Another choice is to look into umbrella policies. These policies offer extra protection beyond what standard auto or homeowner’s insurance provides. People with big assets often get umbrella policies for extra liability coverage.
Filing Suit Against Additional Defendants
It might be possible to sue additional defendants who played a part in the accident or damages. This could include the driver’s employer if they were on the job, or others involved. Talking to a personal injury lawyer can help you figure out who to sue.
Collecting Under an Umbrella Policy
Umbrella insurance is a safety net when your losses are more than your primary insurance can handle. These policies usually offer an extra $1 million or more in liability coverage. This is key for serious injuries or accidents with many vehicles.
Dealing with excess damages and insurance limits can be tough. But, a good personal injury lawyer can help you get the most compensation. They’ll look at all your options and protect your rights in court.
Suing the Defendant for Personal Assets
If the at-fault driver’s insurance doesn’t cover all your damages, you might sue them for their personal assets. This can be tricky because some property is protected from being taken. A good personal injury lawyer can help you navigate this, explaining your rights and what might happen.
In California, cars must have at least $15,000 for injuries to one person, $30,000 for all injuries in an accident, and $5,000 for property damage. Sometimes, you can get more than the insurance allows if the defendant has personal assets. Insurance companies that don’t settle fairly might have to pay more than their policy limits in court.
If you think your damages might be more than the insurance, get advice from a law firm that knows this area well. The Dominguez Firm, for example, has over 30 years of experience with these cases. They offer free consultations to help you understand what to do next.
- California Insurance Code § 791.13(a) says the insured must agree before sharing policy limits with someone asking before a lawsuit.
- Cases like Aguilar v. Gostischef (2013) and Biocourt v. Amex Assurance Co. (2000) show what happens if insurance companies don’t share policy limits or settle within limits.
- Having a personal injury lawyer can greatly increase your chances of getting fair compensation. They can help you get money for injuries, medical costs, lost wages, pain, suffering, and more.
Don’t wait to take legal action if your losses are more than the insurance covers. The time limit to sue might be short. A skilled lawyer can find all ways to get you money and make sure you get the justice you deserve.
understanding insurance policy limits
Knowing your auto insurance policy limits is key. Many drivers only have the minimum required liability insurance. This might not cover all your injuries and losses after an accident. Looking into uninsured/underinsured motorist coverage can offer more protection. But, what’s best for you depends on your situation.
Insurance policies have limits for different damages. For instance, bodily injury liability might cover up to $100,000 per person and $300,000 per accident. Property damage liability could be up to $50,000.
| Coverage Type | Typical Limits |
|---|---|
| Bodily Injury Liability | $100,000 per person, $300,000 per accident |
| Property Damage Liability | $50,000 |
| Uninsured/Underinsured Motorist | $100,000 per person, $300,000 per accident |
| Collision Coverage | Actual cash value of the vehicle |
It’s vital to check your insurance policy limits often. Your coverage needs might change due to financial or vehicle value changes. Talking to a knowledgeable personal injury attorney can help you make smart choices and get the compensation you deserve.
“Knowing your policy limits and exploring additional coverage options can provide crucial protection in the event of an auto accident.”
Understanding insurance policy limits is crucial after an auto accident. Being proactive and getting professional advice can help you get the compensation you need to heal and move on.
The Role of a Personal Injury Attorney
Dealing with an auto accident can be tough. An experienced personal injury attorney can be a big help. They know your rights and how to get you the most money you deserve.
Navigating Legal Complexities
Personal injury attorneys are experts in insurance claims and negotiations. They handle the legal stuff so you can heal. They deal with insurance companies and make sure your rights are protected.
They also know the laws in your state. This helps them find ways to get you more money. They might even find extra coverage to help you.
Having a personal injury attorney can change your case. They make sure your rights are looked after. This way, you can get the best outcome and the money you deserve.
“A skilled personal injury attorney can make all the difference in ensuring you receive the compensation you deserve after an auto accident.”
At Cellino Law, we help people like you. We know about insurance, negotiations, and laws. We fight for your rights and help you get what you need. Call us for a free talk and let us help you.
Steps to Take After a Hit-and-Run Accident
Being hit by a driver who leaves the scene is very stressful. It’s important to act quickly to protect your rights and get the help you need. By following these steps, you can stay safe, build a strong case, and deal with insurance and legal issues.
- Ensure Your Personal Safety: Move your car to a safe spot and check on anyone else who might be hurt. Your safety and the safety of others is the most important thing.
- Report the Incident to the Police: Call the police right away and tell them everything you know about the accident. Give them details about the other car, like its color, license plate, and where it went. A police report is key for insurance and legal actions.
- Gather Evidence from the Scene: If it’s safe, take pictures of the damage, the accident spot, and any injuries. Also, try to find surveillance footage or get witness contact info to help find the driver.
- Seek Medical Attention: Even if you don’t think you’re hurt badly, get checked out by a doctor. Some injuries, like whiplash or internal bleeding, might not show up right away. Getting medical help early also helps with your insurance claim or legal case.
- Notify Your Insurance Company: Tell your insurance company about the accident and start a claim. Give them all the details, including the police report and any evidence you have. They can help you understand your options and guide you through the process.
By taking these steps, you’re setting yourself up for success with your insurance claim or legal action. This way, you can get the compensation you deserve for the damage and injuries from the hit-and-run accident.
“Dealing with the aftermath of a hit-and-run accident can be incredibly stressful, but it’s essential to take the right steps to protect your rights and your financial well-being.”
Remember, time is crucial for collecting evidence and filing claims. The sooner you act, the better your chances of a good outcome. With the right steps and support, you can get through this tough time and move forward with confidence.
Conclusion
Understanding insurance policy limits and getting compensation after an auto accident is tough. But, with the right help, you can manage your finances and get the compensation you need.
Knowing the difference between liability limits and excess damages is key. This knowledge helps you decide how to recover. You might look into underinsured motorist (UIM) policies or sue the at-fault party if their insurance is not enough.
Having a skilled personal injury attorney by your side is crucial. They can help you understand the legal side, fight for you, and increase your chances of getting the money you deserve. You don’t have to go through this alone. With the right support, you can overcome the challenges and get a good outcome.
FAQ
What are insurance policy limits?
Insurance policy limits are the highest amount an insurance company will pay for damages caused by a policyholder. This applies to both personal and commercial vehicle accidents.
How often do auto accident settlements exceed policy limits?
Auto accident settlements rarely go over the policy limits. But, it can happen. If the damages are more than the coverage, you need to look for other ways to get the extra money.
What are the options for collecting excess damages?
If the damages from an accident are more than the policy limits, you have a few options. You can sue other parties involved or try to get coverage from an umbrella policy.
Can I sue the defendant for their personal assets?
Yes, you can sue the defendant for their personal assets if their insurance isn’t enough. But, it’s hard because they might have assets that can’t be taken.
Why is understanding insurance policy limits important?
Knowing about insurance policy limits is key after an accident. Many drivers only have the minimum insurance, which might not cover all your damages.
How can a personal injury attorney help?
A personal injury attorney is very helpful after an accident. They can guide you through insurance claims and help you get the most compensation you deserve.
What steps should I take after a hit-and-run accident?
After a hit-and-run, make sure to stay safe, report it to the police, and collect evidence. Also, get medical help and tell your insurance right away.