If you’re new to anything personal injury related, you might find yourself scratching your head from this one specific term that your car accident lawyer will throw at you when discussing your case:
A lot of the interactions you will have with your lawyer are going to be anything related to this term. So exactly what does ‘policy limit’ mean? And why is it so important in your personal injury case?
Auto Insurance Limits Explained
The policy limits of one’s insurance is the maximum amount of money they’re going to pay on their client’s behalf.
For example, when you’re in a collision with someone with a $15,000 policy limit (the minimum legal requirement in California), then that’s the most money you’ll be given for all the losses you have suffered from the accident. Keep in mind though that there are a lot of factors to consider when determining the value of your case. Furthermore, it is important to note that every carrier has the opportunity to settle within the policy limits.
If the defendant’s insurance has minimum policy limits, this could be bad news if you acquire serious life-altering injuries from the accident, including but not limited to Spinal Cord Injury, Traumatic Brain Injury, Soft Tissue Injury, etc. Such injuries require extensive medical treatment and invasive surgery for a full recovery.
$15,000 will simply not cut it.
This is when uninsured motorist coverage (UIM) comes in handy. UIM is helpful in situations when:
The other party has no insurance
The other party has low policy limits
The other party is unidentified
Having a UIM policy will ensure that you get compensated adequately should you become a victim of a car accident. Not only will it protect you from underinsured motorists, but it will also help you during instances when you become a victim of a hit-and-run.
In a hit-and-run, there’s nobody to blame as the assailant will usually remain unidentified. Thus, taking legal action is nearly impossible. However, if you have UIM, your personal injury lawyer may then hold your insurance accountable.
A lot of people fret when they learn that their personal injury lawyer will “go after” their insurance company to get maximum compensation. But this reaction, while perfectly understandable, is unwarranted.
In reality, your personal injury lawyer is actually working together with your insurance company to get you maximum compensation.
Most claimants have this idea that this collaborative effort will increase their insurance premium. But remember, you paid extra for your UIM; therefore, your insurance company has no legal right to increase your premium under circumstances like this. You’re merely asking them to provide the service that you paid for. Most people aren’t aware of this, which is why it’s extremely important to have a personal injury lawyer by your side so that you know your rights.
Lotto Money In Litigation
There are instances when insurance companies act on their greed and not give adequate compensation.
When these cases get litigated, big money can be at stake depending on the injuries and other damages. In these situations, the attorneys will pursue this as an “open policy” matter. What this means is that because the insurance company did not put forth a good faith effort to settle within the policy limits, damages beyond the limits can now be pursued. This can be thousands or even millions of dollars more.
Going to trial is another beast to conquer, which is why some personal injury firms collaborate with other firms to lock in their case’s victory. They may also work with the defendant themselves to sue their own insurance company altogether — these are known as bad faith lawsuits. Since there is a lot of high-risk work involved during litigation, the rewards are often hefty.
This is why it’s important to choose a personal injury law firm that is willing to fight for their clients every step of the way. Omega Law Group is one of the few firms in Los Angeles willing to do so, and it shows in their successful track record. In one of their more noteworthy cases, Omega Law Group was able to help a client garner $5 million in compensation.
Call Omega Law Group
We have represented clients who have been afflicted by various personal injuries, including Spinal Cord Injury, Traumatic Brain Injury, Soft Tissue Injury, and many more. Our awards and excellent testimonials are a result of our ability to empathize and attend to the needs of our clients. Here at Omega Law Group, you will come first. If you or a loved one is afflicted with an accident, reach out to our team. Visit our Contact Us page or call us at (310) 504-1852.