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What Does Full Policy Limit Really Mean?

Sacramento Car Accident Lawyer Explains “Full Coverage” Auto Insurance Policy

When you are seeking compensation for an injury, you will most likely have to deal with some type of insurance company. Insurance companies assume responsibility in a wide variety of injury cases from car insurance claims, to medical malpractice, to premises liability. Accidents alone can be a pretty tricky subject to understand. Insurance companies and how policies work can be even trickier. If have been involved in any type of accident, contacting a Sacramento car accident lawyer is the best way to get the compensation you deserve.

Understanding Policy Limits

When you bring up a personal injury claim to court, the defendant is responsible in full for all damages they caused you to suffer. This includes medical bills, pain and suffering, lost wages, property damages and any other losses they incurred. Usually, when an individual buys liability insurance, there is always a policy limit in place. In a claim, the insurance company is responsible to pay only up to the policy limit. If the damages exceed the policy limit, there are a few possible ways you can collect damages in excess of limits:

  • Bring a lawsuit against additional defendants
  • Recover under an umbrella insurance policy
  • Try to collect from a defendant personally

Each option depends on the circumstances of your case so it’s best to contact an accident attorney to assist you in selecting the best method.

Understanding Insurance Adjusters

Insurance adjusters are assigned to a case to investigate facts and determine how much a claim is worth. They work for the insurance company and are interested in keeping the payouts as low as possible. And even though that’s their main goal, they also want to avoid a lawsuit. So if a case does not settle outside of court, the individual who was injured usually has the option of going to court and filing a civil lawsuit. This is especially risky for an insurance company as the damage award can end up being very high if the jury is sympathetic to the plaintiff.

Typically, adjusters decide on how much they are actually willing to pay out and then will make an offer that is lower than the maximum. It can be as much as 25% to 50% lower. This gives them negotiating room during settlement discussions. If an insurance company has the opportunity to settle a claim for an amount within the policy limits and they do not do so, then the insurance company may be held liable for the full amount of damages that result from a jury verdict. Each case is different and it’s always best to contact a Sacramento car accident lawyer who can evaluate your case and advise accordingly.

Speak With A Sacramento Car Accident Lawyer About Your Claim

Contact our Sacramento car accident lawyer to discuss your injury concerns. We offer a free initial consultation where you can get honest answers to your questions and learn more about your rights in these matters. Please call 916-304-0952 or send us an email to schedule an appointment.

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