Personal Injury Settlements

Auto insurance policy limits are a crucial aspect of your coverage that determine the maximum amount your insurance company will pay in the event of a claim. These limits vary by state and type of coverage, and understanding them is essential for ensuring you have adequate protection.

 

State-Mandated Minimum Limits

 

Each state sets its own minimum requirements for auto insurance coverage. In Texas, for example, the minimum liability coverage limits are:

 

– $30,000 per person for bodily injury

– $60,000 per accident for bodily injury

– $25,000 for property damage

 

This is often referred to as a 30/60/25 policy. However, it’s important to note that these are just the minimum requirements, and they may not provide sufficient coverage in all situations.

 

Liability Coverage Limits

 

Liability coverage is typically split into two categories:

 

1. Bodily Injury Liability: This covers injuries to others when you’re at fault in an accident.

2. Property Damage Liability: This covers damage to other people’s property when you’re at fault.

 

Your policy limits for liability coverage are usually expressed as three numbers, such as 100/300/100. This would mean:

 

– $100,000 per person for bodily injury

– $300,000 per accident for bodily injury

– $100,000 for property damage

 

Higher limits offer more protection but typically come with higher premiums.

 

Underinsured/Uninsured Motorist Coverage

 

This coverage protects you if you’re in an accident with a driver who has insufficient insurance or no insurance at all. The limits for this coverage often mirror your liability limits, but you may have the option to choose different amounts.

 

For example, you might have a 100/300 underinsured motorist policy, meaning:

 

– $100,000 per person

– $300,000 per accident

 

Other Policy Limits

 

Auto insurance policies may also include limits for:

 

– Collision coverage: Pays for damage to your car from a collision

– Comprehensive coverage: Covers non-collision-related damage to your car

– Medical payments or Personal Injury Protection (PIP): Covers medical expenses for you and your passengers

 

These limits are typically set as a single amount per incident.

 

Choosing Your Policy Limits

 

While state minimums provide a baseline, they may not offer enough protection in many scenarios. When selecting your policy limits, consider:

 

1. Your assets: Higher limits can help protect your savings and property in case of a lawsuit.

2. Your risk factors: If you have a long commute or frequently drive in high-traffic areas, you may want higher limits.

3. Your budget: Balance the cost of higher premiums against the potential financial risk of lower limits.

 

Remember, insurance is about protecting yourself financially. While higher limits mean higher premiums, they also provide greater peace of mind and financial security in the event of a serious accident.

 

It’s advisable to review your policy limits regularly with your insurance agent to ensure you have appropriate coverage for your current situation.​​​​​​​​​​​​​​​​

As a personal injury law firm, we often share our case results on social media. You may have seen posts where we mention receiving “policy limits” or even “double policy limits.” But what exactly does this mean? Let’s break it down.

 

What Are Policy Limits?

 

Policy limits refer to the maximum amount an insurance company will pay for a claim under a specific policy. When we say we’ve received “policy limits,” it means we’ve secured the maximum amount available under the at-fault party’s insurance policy.

 

For example, if a driver has a liability policy with limits of $100,000 per person and $300,000 per accident, the most their insurance would pay for injuries to a single person is $100,000, regardless of the actual damages.

 

Why Don’t We Post Exact Amounts?

 

We often use the term “policy limits” rather than posting exact dollar amounts for several reasons:

 

1. Privacy: We respect our clients’ privacy and the confidentiality of settlements.

2. Variability: Policy limits can vary significantly from case to case.

3. Clarity: “Policy limits” clearly communicates that we’ve secured the maximum available under the policy.

 

What Does “Double Policy Limits” Mean?

 

When we mention “double policy limits,” it typically means we’ve secured the maximum amount from two different coverages:

 

1. The at-fault party’s liability coverage

2. Our client’s underinsured motorist (UIM) coverage

 

For instance, if the at-fault driver had a $100,000 policy limit, and our client had $100,000 in UIM coverage, we could potentially recover up to $200,000 total – hence, “double policy limits.”

 

Why Policy Limits Matter

 

Understanding policy limits is crucial because they can significantly impact the compensation available in a personal injury case. In severe injury cases, damages often exceed the at-fault party’s policy limits. This is why we always recommend carrying robust UIM coverage.

 

Our Role as Your Attorneys

 

As your personal injury attorneys, our job is to identify all available insurance coverages and fight to secure the maximum compensation possible within those limits. Sometimes, this means pursuing multiple policies or exploring other avenues for compensation beyond insurance.

 

Remember, every case is unique, and the specific amounts recovered can vary widely based on the circumstances of the accident, the severity of injuries, and the insurance policies involved.

 

If you have questions about your own case or insurance coverage, don’t hesitate to reach out to us for a consultation.

 

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This article provides a clear explanation of policy limits that your social media followers can reference when they see your posts about case results. It also touches on the concept of “double policy limits” and explains why exact dollar amounts aren’t always shared. Feel free to adjust the content to better fit your firm’s specific practices and the information you want to convey to your audience.​​​​​​​​​​​​​​​​

The question of whether a claimant can receive more than the policy limits is complex and depends on various factors, including state law and the specific circumstances of the case. In Texas, the situation is governed by what’s known as the Stowers Doctrine.

 

The Stowers Doctrine and Its Impact

 

Under the Stowers Doctrine in Texas:

 

1. If we make a demand for policy limits on a liability claim and the insurance company accepts, they will pay the available policy limits. In this scenario, you cannot pursue an excess verdict that exceeds these limits. Essentially, the value of your case is capped at the policy limits.

 

2. However, if we make a policy limits demand and the insurance company refuses to pay, we have the option to take the case to trial. At trial, we can potentially secure a verdict that exceeds the policy limits. In this situation:

   – The insurance company would be responsible for paying the full verdict amount, not just the policy limits.

   – The insured (defendant) might have grounds for a bad faith claim against their own insurance company, which could result in treble damages in some cases.

 

Insurance Company Decision-Making

 

This creates a complex risk calculation for insurance companies. When they receive a policy limits demand, they must weigh:

– The risk of an excess verdict if they refuse to pay

– The potential for a bad faith claim from their insured

– The likelihood of successfully defending the case at trial

 

If they believe the risk is low, they might choose to litigate rather than pay policy limits. However, if they miscalculate, they could end up paying far more than the policy limits and facing a bad faith claim.

 

Underinsured/Uninsured Motorist (UIM) Claims

 

It’s important to note that UIM claims in Texas operate differently:

– The Stowers Doctrine does not apply to UIM claims.

– There is no possibility of an excess verdict for UIM claims, even if the case goes to trial.

– The maximum recovery is always limited to the policy limits of the UIM coverage.

 

Variations by State

 

While we’ve focused on Texas law here, it’s crucial to understand that these rules can vary significantly by state:

– Some states have doctrines similar to Stowers, but with different names or slight variations in application.

– Other states may have entirely different mechanisms for handling policy limit demands and excess verdicts.

 

Always consult with a local attorney familiar with your state’s specific laws and regulations regarding insurance claims and policy limits.

 

Understanding these nuances is crucial when navigating personal injury claims. As your attorneys, we carefully consider these factors when negotiating with insurance companies and advising on whether to accept a settlement or proceed to trial.​​​​​​​​​​​​​​​​