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How Insurance Policy Limits Affect Legal Cases

How Insurance Policy Limits Affect Personal Injury Cases

People 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

Victims who have health insurance coverage can usually use it to pay for medical expenses. However, health insurance providers may require reimbursement if you are awarded damages in court.

  • Medical Provider Negotiations

Victims who are facing extremely high medical bills and who have run up against policy limits may be able to negotiate a payment plan and/or discounted rates with their health insurance provider. The likelihood of this happening is enhanced when you have an attorney advocating for you.

  • Underinsured or Uninsured Motorist Coverage.

Drivers who carry UM or UIM coverage through their car insurance provider may be able to recover damages against that amount if the defendant’s policy limits are insufficient to cover all of your expenses.

Eisenberg Law Offices Personal Injury Attorneys Can Help You Secure Compensation After An Accident

If you have been injured in an accident of any kind, contact the personal injury attorneys at Eisenberg Law Offices in Madison for advice. We will examine your case and recommend a course of action based on the evidence and the insurance policy limits you may be facing. Together we can help you recover from the accident and get back on your feet with minimal damage to your financial situation.

We have over 35 years of experience in personal injury cases and offer free, no obligation consultations to help you understand your situation and make a decision about if and when to take the case to court.

Contact Eisenberg Law Offices for a free case evaluation by calling 608-256-8356 or emailing]]>