If you’ve been involved in a car accident in St. Louis or are seeking the counsel of a St. Louis car accident lawyer, one term you might come across is “policy limits settlement.” This FAQ will help you understand the term and how it can affect your potential settlement.
What is a policy limits settlement?
A policy limits settlement is when an insurance company agrees to pay the maximum amount available under a specific insurance policy to settle a claim. This figure is essentially the ceiling amount the policy sets for particular damages or injuries.
It’s crucial to note that this doesn’t mean the victim’s damages are limited to the policy amount. It merely signifies the most an insurance company will pay based on the purchased policy.
Why would an insurance company offer a policy limit settlement?
Insurance companies operate based on risk assessment. When they assess that the potential judgment, if a case goes to court, could surpass the policy’s limit, they might choose to offer a policy limits settlement.
By settling at the policy limit, insurance companies can mitigate the risk of incurring higher costs from a verdict that goes beyond the policy and save on litigation expenses and uncertainties.
Can I ask for more than the policy limit?
Technically, you can demand an amount that exceeds the policy limit. However, it’s essential to understand that insurance companies have no obligation to pay beyond what’s stipulated in their policy.
If your damages surpass the policy limit, seeking additional compensation from the person at fault becomes the next viable step. Yet, this approach can be more intricate and prolonged.
Is a policy limits settlement the final settlement?
Once you accept a policy limits settlement, it typically signifies a conclusive settlement of that claim. This means you relinquish the right to pursue additional compensation from the insurance company related to that incident.
However, depending on the case’s specifics, this doesn’t prevent one from seeking compensation from other avenues or parties.
How does a St. Louis car accident lawyer determine if a policy limits settlement is appropriate?
When a St. Louis car accident lawyer evaluates a case, they start by meticulously reviewing the specifics, including the gravity of injuries or damages, estimated future medical expenses, and loss of wages, among other relevant considerations.
If the projected costs are nearing or are expected to overshoot the policy limit, pushing for a policy limits settlement becomes a strategic course of action.
Do I need a lawyer to negotiate a policy limit settlement?
Legally speaking, individuals are not obligated to engage a lawyer when entering into negotiations following an accident. Yet, the value of enlisting the services of a St. Louis car accident lawyer cannot be overstated. These professionals bring a wealth of knowledge honed over years of dealing with similar cases and a comprehensive understanding of the intricacies of personal injury law.
Their expertise equips them to effectively face off with insurance companies, who often have teams of experienced legal professionals aiming to minimize payouts. This often becomes a game of strategy and understanding the nuances of the law, where having someone seasoned by your side can be the difference between a fair settlement and being left wanting.
A St. Louis car accident lawyer has the acumen to assess the true worth of your claim, ensuring you aren’t short-changed. Beyond the monetary aspects, they also advocate for your rights, ensuring that your best interests, well-being, and prospects remain at the forefront of all discussions and decisions.
Contact Langdon & Emison or call (866) 931-2115 for a free consultation.