Most of the time, the plaintiff in a personal injury case will receive compensation from the at-fault party's insurance company instead of directly from the individual. Because of this, it's important that you understand how insurance policy limits affect your personal injury case.
What is an Insurance Policy Limit?
Every insurance policy has a limit that represents the maximum dollar amount that the insurance company is on the hook to pay on behalf of one of their policyholders. For example, a driver may have a car insurance policy with a $25,000 limit. If you are injured in a car accident caused by this driver, the most that you will be able to recover from his insurance company is $25,000, regardless of the severity of your injuries.
Some types of insurance policies have higher limits than others. For instance, policies that cover semi-trucks have significantly higher limits than car insurance policies. Businesses may also have high limits on their liability insurance to protect them in the event of a slip and fall accident. However, a high insurance policy limit does not mean you will automatically recover more compensation. You will still need to work with an attorney to prove the value of your claim regardless of how high the limit may be.
Minimum Policy Limits
In California, there are no minimum policy limits for homeowners' insurance or commercial general liability insurance. This means the policies that cover injuries that occur on public or private property can vary greatly in terms of limits. However, the state of California does have minimum policy limits in place for all drivers. Every driver in California should have an auto insurance policy that covers at least $15,000 for a single death or injury, $30,000 for death or injury to more than one person, and $5,000 for property damage. This means if you are involved in an accident with an insured driver, you can expect that driver to have a policy that covers at least $15,000 of your injuries.
An attorney can help you discover the at-fault party's insurance policy limit. An attorney will need to contact the insurance adjuster, who will then need to ask the insured for permission to release this information to you.
If you have been injured by another person's negligence, contact James Rush at Rush Injury Law today. Our team will explain all of your legal options and help you recover the compensation that you deserve. Call us today at 415-897-4801 or fill out the online form on our website www.rushinjurylaw.com to request a free consultation.