If you’ve been involved in a car crash in Georgia, you may have heard the term “policy limits settlement.” It might sound confusing, but it’s a crucial part of understanding how insurance policies affect car accident settlements. The insurance company will not offer a settlement higher than the at-fault driver’s insurance coverage limits. The maximum amount they will pay is a policy limits settlement.
We’ll break down what you should know about how policy limits settlements in personal injury accidents and what happens when your car accident claim exceeds policy limits.
At GMV Law Group, our experienced Atlanta car accident lawyers are here to fight for the compensation you deserve.
What Is a Policy Limits Settlement?
A “policy limits settlement” is the maximum amount of money that an insurance company will pay out for a car accident claim. This amount is determined by the at-fault driver’s insurance policy limits. Essentially, the insurance company will not pay more than the amount that is listed in the at-fault driver’s policy.
For example, if the at-fault driver’s policy has a $25,000 coverage limit for bodily injury, then the insurance company will only pay up to $25,000 for your injuries. If your medical bills and other car accident damages exceed that amount, you may need to find other ways to cover the remaining costs.
Understanding policy limits is important because it sets the boundaries for what can be recovered from the insurance company. The amount you can settle for depends on the at-fault driver’s insurance coverage, so knowing what that coverage is can help you plan your next steps.
Car Insurance Coverage in Georgia
In Georgia, every driver is required by law to have car insurance. Liability insurance covers damages that you cause to other people and property. The minimum auto liability insurance in Georgia covers:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage per accident
If a driver has the minimum coverage, the insurance company will only pay $25,000 per person for injuries and $25,000 for property damage. Policy limits settlements may not cover medical bills and other damages, especially if you suffer severe injuries.
While not mandatory, it’s strongly recommended to have UM/UIM coverage. This covers you if the driver who caused the accident doesn’t have insurance or doesn’t have enough insurance to cover all of your damages. If the at-fault driver only has the minimum coverage and your damages exceed that, your own UM/UIM insurance can help fill the gap.
What Happens If a Car Accident Claim Exceeds Policy Limits?
Sometimes, the damages from a car accident exceed the at-fault driver’s policy limits. If this happens, you may still have a few options to recover the remaining amount.
Suing the At-Fault Driver
If the at-fault driver’s insurance doesn’t cover all of your damages, you can file a lawsuit against the driver for the remaining amount. However, this comes with risks. Even if you win the lawsuit, the at-fault driver may not have enough money to pay the remaining amount. This means that while you might get a court judgment, you may not be able to collect the full amount if the driver doesn’t have the financial resources to pay.
Uninsured/Underinsured Motorist Coverage (UM/UIM)
If the at-fault driver’s insurance is not enough to cover your damages, and you have UM/UIM coverage, your own insurance policy can step in to cover the difference. For example, if the at-fault driver’s insurance only covers $25,000, but your medical bills and other damages total $50,000, your UM/UIM coverage could cover the remaining $25,000.
Keep in mind that the amount of coverage you have under your UM/UIM policy depends on what you chose when you bought the insurance. If you have a high limit, you may be able to fully cover your damages. But if your UM/UIM coverage is low, you could still be left with an unpaid balance.
How Insurance Affects Car Accident Settlements in Georgia
When you file a claim after a car accident, the first thing that will happen is that your lawyer and the insurance company will look at the at-fault driver’s insurance coverage. If the at-fault driver has sufficient insurance, they will pay up to the policy limits for your injuries, property damage, and other expenses.
However, if the damages exceed the at-fault driver’s policy limits, you may need to consider other options, such as filing a lawsuit against the driver or using your own UM/UIM insurance.
It’s also important to remember that insurance companies don’t always offer fair settlements right away. Often, they try to settle quickly for a smaller amount. This is why it’s crucial to have an experienced car accident lawyer on your side. An attorney can help you understand your rights, make sure you’re not being underpaid, and guide you through the process of either negotiating with the insurance company or filing a lawsuit if needed.
How Our Atlanta Car Accident Lawyers Can Help
At GMV Law Group, we understand how complicated it can be to navigate the insurance claims process after a car accident. Our team of Atlanta car accident lawyers can help you understand your insurance options, assess the at-fault driver’s coverage, and determine the best course of action to get the compensation you deserve.
If your car accident claim exceeds the at-fault driver’s policy limits, we can help you explore your options. Whether it’s negotiating with the insurance company, filing a lawsuit against the driver, or using your UM/UIM coverage, we’ll work to ensure that you get the financial support you need to recover from your injuries and move forward with your life.
Contact GMV Law Group for a Free Case Review
Understanding how insurance works in car accident cases is essential for protecting your rights and getting the compensation you deserve. If the at-fault driver’s insurance doesn’t cover all your damages, a policy limits settlement will determine how much you can receive from their insurance. If the damages exceed the policy limits, you may need to consider other options, such as suing the driver or using your own uninsured/underinsured motorist coverage.
At GMV Law Group, we’re here to help you navigate the complexities of car accident claims and insurance settlements. Our Atlanta personal injury lawyers have recovered millions for clients.
Contact us today for a free consultation and learn more about how we can assist you in securing the compensation you deserve.
