Insurance Policy Limits and Personal Injury Claim Settlements
Being fairly compensated and obtaining the most money from a personal injury claim is crucial. Understanding the limiting factors that may be present and what other elements impact a claim are essential to working through the claims process and getting as much as possible from it.
If you were hurt in an injury accident in New Jersey, having experienced legal assistance and representation can help you be successful with your claim and maximize the compensation you can receive from it. For more information on the claims process, the personal injury attorney at Monaco Law PC welcomes you to call and schedule a free consultation to review your case.
What Are Insurance Policy Limits?
When people buy insurance, there are usually varied levels of coverage available. For example, New Jersey’s basic mandated car insurance coverage is $25,000 per person, with a maximum amount of $50,000 per accident and up to $25,000 of property damage including vehicles. The minimum levels of coverage were increased in 2023. On the other hand, a standard New Jersey car insurance policy can be as high as $250,000 per person, with $500,000 per accident and up to $100,000 or more for property damages. In Pennsylvania, the minimum policy limits have not changed in decades. The lowest coverage required by law is still only $15,000 per person and $30,000 per accident along with $5,000 in property damage coverage.
The policy limit is the highest amount that will be paid by an insurance policy based on the terms of that policy. So, if a liable party had the standard insurance policy, then it could be possible for a person who suffers a bodily injury to obtain as high as $250,000 if that is the liable party’s insurance policy’s maximum.
Usually, when catastrophic accidents happen where there are severe injuries and extensive damages, the policy limits will be a factor. For instance, if a person is critically injured and their damages cost $100,000 but the driver that is responsible only has an insurance policy that has $50,000 in maximum coverage, the most that the injured party can obtain from the policy is $50,000.
Clearly, a person with only $50,000 in coverage has insufficient insurance to pay for the damages their accident produced. As a result, if this person has valuable assets or wealth, they would become personally responsible for paying the victim the remainder of their damages.
This is why selecting the appropriate amount of insurance is necessary. If you are not a wealthy person and don’t have valuable assets, then a policy with lower limits that may be more affordable could make the most sense for you because you have little to lose. However, if you are a person of a high-net worth, then paying for more insurance coverage to protect yourself is likely going to be the right approach since you have so much more on the line.
Speak to a New Jersey and Pennsylvania Personal Injury Attorney Today
If you were hurt in a car accident in New Jersey, you can speak with an attorney at Monaco Law PC by calling (609) 277-3166 for our New Jersey office and (215) 546-3166 for our Pennsylvania office to discuss your case today.
We are a New Jersey and Pennsylvania personal injury law firm serving Atlantic County, Bucks County, Burlington County, Cape May County, Camden County, Chester County, Cumberland County, Delaware County, Gloucester County, Mercer County, Middlesex County, Montgomery County, Philadelphia, Ocean County, Salem County, and all of South Jersey.
Source:
nj.gov/dobi/division_consumers/insurance/basicpolicy.shtml
