A policy limits settlement (also known as a settlement at the policy limits) represents the settlement of a case at the maximum bodily injury limit available under the at-fault party’s car insurance policy. For example if the at-fault party has a $250,000/$500,000** liability limit on their auto policy, a policy limits settlement would be in the amount of $250,000.
This is because when reading liability limits under an automobile insurance policy, the first number is generally the maximum amount that any one person involved in the accident can receive under the policy. The second number represents the maximum amount that the insurance company may have to pay in the aggregate to all injured persons from a car accident. Our office has extensive experience at obtaining policy limits settlements and will work to help maximize and obtain the financial recovery that you deserve.
Unfortunately, sometimes the at-fault party’s insurance is not sufficient to fully compensate the injured party for their injuries. At this point, the attorney will determine if the injured party’s own automobile insurance policy will help to cover the difference through “Underinsured Motorist” (UIM) or “Uninsured Motorist” (UM) coverage. As the name suggests, Underinsured Motorist coverage protects you if the at-fault party is underinsured (does not have enough coverage to fully compensate you for the injuries that you have suffered).
Uninsured Motorist coverage provides protection if you are hit by an uninsured driver. If you are hit by an uninsured driver and do not carry Uninsured Motorist coverage, there may be no financial coverage available to protect you. If you do not carry UM and UIM coverage on your vehicle, then you are putting yourself and your family at risk every time you travel in your car.
The example policy limits cited in this article were selected for instructive purposes only and do not represent numbers that are always available or that frequently occur on automobile insurance policies. The only way to know the policy limits on any particular insurance policy is to examine the terms of the subject insurance policy.