What Is a Policy Limits Settlement?

Accidents can happen anytime; when they do, the victim will probably suffer from physical, emotional, and financial damages. Particularly in a personal injury case, understanding policy limits is crucial as these cases often involve settlements that cover both economic and non-economic damages. It’s essential to be knowledgeable about your insurance policy limits, which affect how much you will receive as compensation.

An experienced Michigan personal injury attorney reviews your insurance policy to get the maximum possible compensation. Read on to know more.

What Is a Policy Limit Demand?

A policy limit demand is a formal request issued to an insurance company to settle the maximum amount stated in their policy, emphasizing the process and importance of making a policy limits settlement demand, especially when the damages are near or exceed the coverage limit. The insurer will determine whether or not to comply, which may risk the insured to be subjected to a jury verdict beyond the available insurance policy limit.

What Are Policy Limits in Insurance Policies?

Insurance policies have liability limits that set the maximum payout an insurance can give under that policy. For example, a policy with a $300,000 limit per accident and $50,000 per person will not pay more than the amount per person, up to $300,000 total even if several people are injured.

Types of Policy Limits

There are several kinds of policy limits depending on the individual’s preferences. Evaluating your choices and choose one that caters to your needs are essential. Some of the most common types of policy limits include:

Strategies for Determining Maximum Policy Limits

Calculating policy limits is one of the most complicated yet crucial tasks in claiming maximum settlements. Your trusted lawyer will carefully scrutinize the at-fault party’s auto liability policy. This sets the baseline bodily injury limits per accident, per person, and aggregates. They will also check for additional excess policies that can be added to the core coverage.

Personal injury lawyers also consider variables eroding accessible limits. This may include claims from other injured parties that tap into the same pool of funds and insurer expenses taken from liability caps. By checking every detail, the full picture will come out. A skilled and dedicated lawyer would know the maximum justifiable policy limits demand for his client.

How Often Do Auto Accident Settlements Exceed Insurance Limits?

It’s uncommon for an insurance company to offer a settlement beyond the policy limit demand letter. However, this depends on the situation. Seek legal representation to make sure that your rights and interests are protected. This is crucial, especially for cases involving a wrongful death claim.

Types of Auto Accident Injuries That Exceed Policy Limits

An accident victim gets compensation for the losses and expenses they suffered. As a result, some injuries may lead to settlements that exceed policy limits. Some examples include:

Injuries that lead to significant hospitalization, inpatient rehabilitation, surgery, nursing care, or at-home support incur high costs. These may go beyond the limits of most auto insurance coverage.

On the other hand, the amount you’ll claim is unlikely to exceed policy limits if you recover within a few weeks. This is also true if you don’t need long-term inpatient care and support.

How Unjust Settlement Offers Are Managed

Insurance companies typically try to make unjust settlement offers so that you get less than the maximum policy coverage. You must know your rights and how much you deserve to get.

Once you can prove liability, send a policy limits demand letter stating the exact amount justifiably owed. You can file bad faith claims if the insurance company unreasonably denies payment despite clear liability.

What a Policy Limits Demand Letter Should Include

All details should be considered and detailed in the demand letter. Make sure to add the following information:

Collecting Injury Compensation Beyond the Insurance Limits in Car Accident Lawsuits

You can explore several other options if the damages you suffered exceed your policy limits. You can use the settlement negotiation process to your advantage by doing the following:

A Lawyer That Handles Personal Injury Cases Can Help With Your Policy Demand

Having attorneys to defend you can go a long way when dealing with conflicts involving insurance policy limits. They can assess the situation and provide your legal rights and options. Their knowledge of statutes, regulations, and contractual obligations is vital. You’ll receive advice on how to create an effective policy limit demand. They will also defend you in court as needed. Understanding the complexities of insurance coverage, including under-insured motorist coverage, is crucial in ensuring you meet or exceed the legal limits of the state, highlighting the importance of a lawyer’s role in personal injury cases.

Do you need an experienced personal injury attorney for your personal injury claim in Michigan? The Clark Law Office can help. Contact us today, and let’s discuss the merits of your case for free.