Personal Injury Claims: What Policy Limits Are and Why They Matter
After an accident, most people focus on getting medical care and figuring out how they’ll cover their bills. What often comes as a surprise later is that the amount of compensation available may have less to do with the severity of your injury, and more to do with the insurance policy limits involved in your case.
Understanding what policy limits are, and why they matter, can help you avoid unrealistic expectations and costly mistakes after a personal injury.
What Are Insurance Policy Limits?
An insurance policy limit is the maximum amount an insurance company will pay on a claim under a particular policy. Once that amount is reached, the insurer generally has no obligation to pay anything further, even if your damages far exceed the limit.
In many personal injury cases, especially car accidents, the at-fault party carries only the minimum coverage required by law. That coverage may be broken down into a “per person” limit and a “per accident” limit, meaning the available insurance can be quickly exhausted—particularly when multiple people are injured.
Why Policy Limits Play Such a Big Role in Injury Claims
Policy limits often set the practical ceiling on how much compensation is available in a case. Even when fault is clear and injuries are serious, the insurance company is not required to pay more than what the policy allows.
These limits also shape how a case is handled. When coverage is low, insurance companies may push for a quick settlement to close the claim before the full extent of the injuries is known. In other cases, once policy limits are confirmed, an insurer may be more willing to resolve the claim rather than risk a lawsuit that exposes the policy’s full value.
Policy limits become even more important when multiple injured parties are involved. In those situations, everyone may be competing for a share of the same limited pool of insurance money, reducing what each person can recover.
What If Your Injuries Are Worth More Than the Policy Limit?
It’s common for serious injuries to exceed available insurance coverage, especially when hospital stays, surgery, or long-term treatment are involved. When that happens, the policy limit does not necessarily end the analysis.
An experienced personal injury lawyer will look beyond the obvious policy to see whether other sources of compensation exist. This may include underinsured motorist coverage, additional policies held by the at-fault party, or claims against other responsible individuals or businesses. In some cases, an employer, vehicle owner, or property owner may share liability, opening the door to more coverage.
How a Personal Injury Lawyer Helps Navigate Policy Limits
Insurance companies do not always make coverage information easy to find, and they are not required to volunteer strategies that benefit injured claimants. A personal injury attorney can formally request policy disclosures, review coverage language, and determine whether additional insurance applies.
Just as importantly, a lawyer can help you understand whether a settlement offer reflects the true limits of the case—or whether you are being pressured to accept less than what may be available.
Contact Justice Through Compensation for Help
If you or a loved one was injured in an accident, please know that the law firm of Justice Through Compensation is here to help. Our legal team is skilled, experienced, and passionate in their representation. Let us shoulder the burden of an injury claim or lawsuit while you focus on healing from your injuries. Contact us today for the quality legal help you deserve.