What should my auto policy limits be?
The amount of Liability coverage you carry should be high enough to protect your assets in the event of an accident. Most experts recommend a limit of at least $100,000/$300,000, but that may not be enough. This is no place for cheap auto insurance.
What does policy limit mean?
A policy limit is the maximum amount of money an insurer will pay out to an insurance policyholder after an insured loss. Policy limits are defined based on what is insured and the kind of kind of policy you hold.
Do I have to disclose my policy limits?
It is standard practice in California for the insurer to send a written request to its insured asking for permission to disclose limits information. My advice is always the same—disclose the information. It may avoid a lawsuit against you. The insurers traditionally have analyzed the issue completely upside down.
What do policy limits of 25 50 25 mean?
“The numbers 25/50/25 refer to the limits of coverage for liability insurance if you hit another vehicle. $25,000 per person for bodily injury liability. $50,000 per accident for bodily injury liability (regardless of how many people are injured) $25,000 for property damage liability.
Why do attorneys ask for policy limits?
A demand for policy limits information often occurs shortly after an accident or “occurrence” in which someone suffers harm, blames another, and seeks compensation. Usually, an attorney or public adjuster contacts the insurance company asking for policy limits.
What happens if medical bills exceed policy limits?
If your medical bills exceed the defendant’s auto policy limit, the defendant is still legally liable for the full amount of your damages. Also, if your medical bills still exceed the defendant’s auto policy limits, you can look to your own uninsured and underinsured motorist policy, or your health insurance.
Can you sue a car insurance company for more than the policy limits?
Unfortunately, you cannot make an insurance company pay beyond its policy limit. You do, however, have the right to sue the at-fault driver for more than the value of his or her insurance policy. This would mean directly filing a lawsuit directly against the driver who caused the accident and not the insurer.
What do each number on the policy limits of 50 100 25 on an automobile insurance policy mean?
Numbers like 50/100/25 are the dollar limits (in thousands) for auto liability insurance coverage: The second number is also for Bodily Injury, but it represents the total coverage for all injuries or deaths in an accident. The third number is the amount of Property Damage liability coverage you have.
What are policy limits in an auto accident case?
When an individual purchases liability insurance, it always comes with a policy limit, which refers to the maximum amount of money that the insurance company will pay on behalf of that person for damage they caused. When accidents happen, victims often wonder how often auto accident settlements exceed the policy limits.
How do I get policy limits from the insurance company?
Usually, an attorney or public adjuster contacts the insurance company asking for policy limits. Persons experienced at the process ask for all policies, including umbrella and excess.
What is a demand for policy limits information?
A demand for policy limits information often occurs shortly after an accident or “occurrence” in which someone suffers harm, blames another, and seeks compensation. Usually, an attorney or public adjuster contacts the insurance company asking for policy limits. Persons experienced at the process ask for all policies, including umbrella and excess.
What if my harms and losses exceed the insurance policy limits?
If you find yourself in this situation, as many people do, and your harms and losses exceed the insurance policy limits, the only option left is to try to collect from the defendant personally.