Understand Policy Limits in Personal Injury Claim

IS IT POSSIBLE TO COLLECT COMPENSATION FOR MY INJURIES BEYOND THE POLICY LIMIT?

Yes. There are 3 additional ways that you can attempt to pursue compensation beyond insurance policy limits:

By suing multiple liable parties
By taking advantage of umbrella policies (when someone is covered by multiple insurance companies)
By filing a direct lawsuit and removing the insurance company from the equation

In this blog post, our legal team explore these three different options in greater detail.

When someone is hurt in any sort of accident, filing a personal injury claim against the liable party will be necessary in order to collect compensation for medical bills, lost wages, and pain and suffering damages. In an ideal situation, the wrongfully injured will get as much compensation as is needed and end up not losing a dime due to the whole ordeal. However, there is one factor in all cases that can put a damper on things and a hard cap on how much the injured can collect: insurance policy limits.

WHAT IS AN INSURANCE POLICY LIMIT?

When you purchase accident or liability insurance, the insurance carrier should inform you of the policy limit. Put simply, the policy limit is the maximum amount the insurance company will pay out in the event you do something wrong and get sued for liability. Policy limits are in place for both out of court settlements and jury verdicts or judge?s awards.

For example: A driver has an insurance policy limit of $25,000. An accident causes $30,000 in damage. In the event of a payout, the insurance company will only provide $25,000. The remaining $5,000 will not be paid by that insurer, no matter where liability lies.

IMPORTANCE OF INSURANCE POLICY LIMITS IN GEORGIA

In most states, insurance companies of third parties liable for your accident do not have to tell you where the policy limit lies until it is reached, either in settlement or a jury verdict. This can be a bit of a headache as you might strive to collect as much as you need only to find out the limit is much lower than expected. Georgia pays favor to plaintiffs by allowing them to know the at-fault party?s policy limit. The injured party can request to know the limit within the first 60 days after the accident or collision, and the insurance party must comply.

TYPES OF POLICY LIMITS

In Georgia, when it comes to insurance policy limits, there are two types: per person and per accident.

Per person: When it comes to Per person limits, it applies to each injured person, meaning that the insurance company will pay a maximum of $50,000 to each person in the event of an accident.
Per accident: Meanwhile, per accident limits apply to the total amount paid out for all claims resulting from one accident.

For example, if a policy has a per person limit of $50,000 and a per accident limit of $100,000, and three people are injured in an accident, the insurance company will pay a maximum of $50,000 to each person for a total of $150,000. If the total damages exceed $100,000, the insurer will pay $100,000, and each claimant will receive a proportionate share.

WHAT TO DO WHEN YOUR CLAIM EXCEEDS POLICY LIMITS

An insurance policy limit is a significant road block in a personal injury claim but it is not entirely unpassable. While you cannot compel an insurance company to pay beyond its preset liability limit, there are other ways to collect excess damages.

Three methods might be possible to receive more damages than the liable party?s insurance policy allows:

Multiple defendants: You can sue multiple liable parties, and each one will be limited by their own policy limits. You cannot collect more than the total amount deemed fair or necessary, no matter how many parties are found liable for your damages.
Umbrella policies: Sometimes one defendant will be covered by multiple insurance companies who all have an interest ? and liability coverage policy ? in the case. This is known as umbrella policies and generally comes up when you are filing a claim against someone employed or represented by a corporation, such as a truck driver.
Direct lawsuits: If you want to go beyond an insurance policy limit, you will need to take the insurance company out of the picture. You can file a lawsuit directly against the liable party who caused the accident, like the driver in a car accident. This will be difficult, though, as most individuals in such situations simply do not have the funds to pay for your damages on their own, and any winning judgment will be uncollectible.

4 COMMON FACTORS THAT AFFECT POLICY LIMITS

Understand that several factors can impact your policy limits in Georgia personal injury claims. These factors can include the following:

Type of insurance policy: Different types of insurance policies can have different coverage limits.
Severity of the injury: The more severe the injury, the more compensation that may be needed, which can affect policy limits.
Number of parties involved: If there are multiple parties in an accident, the policy limits may be exceeded.
Insurance company: Different insurance companies have different policy limits, so it is important to know the limits of the liable party’s insurance company.

PEOPLE ALSO ASKED

What happens when insurance coverage is not enough?

If your insurance coverage isn’t enough to cover the cost of a claim, you’ll have to pay the remaining balance yourself. In some cases, if the other party is found to be at fault, you may be able to get additional compensation from them.

How do you read policy limits?

Policy limits are expressed as numerical values on your insurance policy document. These figures represent the maximum amount that your insurance company will pay for a claim. To find your policy limits, look for the terms “limit” or “maximum” on your policy document. This will indicate the highest amount of money that the insurer will pay for a claim.

What happens if medical bills exceed policy limits in Georgia?

In Georgia, if medical bills exceed policy limits, the policyholder is responsible for paying the remaining balance. The insurance company will only cover the costs up to the limit specified in the policy.

Can I receive more money than my insurance policy limits?

In certain situations, it may be possible to receive more money than your insurance policy limits. This typically occurs when the other party is found to be at fault for the accident and does not have enough insurance to cover the full amount of damages.

Is Georgia a no-fault state?

No, Georgia is not a no-fault state. No-fault insurance policies provide a set amount of coverage regardless of who is at fault for the accident.

What is the average settlement for a car accident in Georgia?

The amount of compensation that is awarded in a car accident settlement in Georgia can vary greatly depending on the severity of the accident and the extent of the damages. In general, a settlement will cover medical costs and property damage.

No two car accident cases are identical. For example Ross Moore Law has won car accident settlements for satisfied clients from $12,438 to up to $1.2 million.

How do I ask my insurance company for more coverage?

If you need more coverage than your current policy provides, you can contact your insurance company and request an increase in coverage. Depending on your policy, you may be able to increase your limits without having to pay an additional premium.

Does Georgia have a limit on punitive damages?

Yes, Georgia has a cap on punitive damages. The maximum amount of punitive damages that can be awarded in Georgia is $250,000 or three times the amount of compensatory damages that have been awarded, whichever is greater.

What are the caps for tort reform in Georgia?

NEED ATTORNEY TO REVIEW YOUR POLICY? ROSS MOORE LAW CAN REVIEW YOUR CASE WITH FREE CONSULTATION TODAY!

An insurance policy limit might act as a barrier of sorts to how much compensation you can collect in a single personal injury claim or lawsuit, but it should not deter you. When you are injured by the reckless, negligent, or malicious actions of another party, you must take action and hold them accountable. And, we can help! We have your initial free consultation ready today.

Plus, we operate on a contingency fee basis, meaning that unless we win, you don’t owe us any legal fees.

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Sarah Smith says:

January 27, 2020 at 10:40 am

I had no idea that you can only claim up to your policy limit, regardless of liability. That makes me worried that my mother isn’t going to get a good settlement on her car accident case on her own. I’ll suggest that she should get a lawyer to help her get as much money as possible so that she can recover from her broken collarbone without worrying about how she will pay her mortgage.

Understanding Policy Limits for Personal Injury Claim in Georgia