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What You Need to Know About Auto Insurance Policy Limits

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What You Need to Know About Auto Insurance Policy Limits

Filing an auto accident claim is relatively straightforward if it’s clear right away who was at fault. However, many claims are frequently challenged, and it’s unclear which way the judgment will go. Be aware that the at-fault driver’s insurance company will usually only issue a payout based on the driver’s coverage limits. Here are some important points that you need to know about auto insurance policy limits.

Why Insurance Limits Matter

Getting into an accident is bad enough, but things can get much worse if damages exceed the insurance limits of the driver responsible for the collision. This means you will only get a payout for up to the policy limit, after which you’ll have to pay for the rest of the repair work out of your own pocket. A policy limit of 50,000 for a serious accident might not pay for all the medical bills.

Many drivers pay for an umbrella insurance policy that combines several different types of policies through one agency. If only one driver is responsible for your accident and they carry umbrella insurance, it may provide enough coverage. Many corporations carry umbrella insurance for liability reasons.

A personal injury attorney can help take your case to its furthest extent. Still, it’s always safer to ensure you have the right amount of insurance coverage. It’s advantageous to understand your legal options, including pursuing multiple personal injury lawsuits, getting a payout from an umbrella policy, and collecting compensation directly from the responsible party.

Suing the At-Fault Driver

In some cases, when the car accident exceeds insurance limits, you may have to consider suing the driver who caused the accident. One of the considerations is whether or not the at-fault driver is in a position to pay for medical bills that exceed the policy limit.

You will need experienced legal assistance to help get a judge to assess the negligent party’s wages. If the driver has property or other assets, the case may lead to a significant settlement. However, if the person lacks assets, it will be extremely difficult to get paid. You’ll need to discuss the risks of pursuing the case with your attorney, who can share potential outcomes from their experiences.

Don’t assume that just because you can confirm who to blame for the accident that their insurance company will automatically pay you right away. Odds favor your case if it’s backed by compelling documentation. However, your case can easily collapse from a lack of documentation.

Responsibilities of the Insurer

Policy limits define specific responsibilities for insurance agencies in California, as they must settle injury claims that fall within policy limits or face paying victims the full compensation. Such a penalty is rare for insurers, but it happens sometimes. Insurers can end up paying more than policy limits if they commit “insurance bad faith,” which involves failing to live up to the terms of the agreement.

One of the worst ways an insurance company can commit bad faith is if they fail to investigate the crash within a certain time frame. Another example is when they don’t send your payment on time. If they refuse to give you a reasonable explanation for denying your claim, your personal injury attorney can press the “bad faith” issue.

Knowing your insurance auto liability limits can prevent a huge financial disaster. Talking with experienced insurance personnel is the key to finding out what you need to do for full protection in the event of a serious vehicle collision. Make sure that you don’t have to worry about the financial implications of an auto accident. Car insurance is there to help. To secure reliable coverage, contact the experts at Little & Sons Insurance Services. Serving Banning and the surrounding cities in California, we are ready to assist you with all your insurance needs.

Little & Sons Insurance Services

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Little and Sons Insurance Services is your complete insurance resource. Since we were established in 1922, we assist individuals and business owners with all of their insurance needs, whether it be for auto, home, or commercial insurance. As an independent, full-service insurance agency, our duty is to our clients’ best interests.

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