The Impact of Policy Limits on Personal Injury Claims

Dealing with the aftermath of an accident or injury can be daunting, especially when insurance comes into play. You may have heard that insurance policy limits cap the compensation you can receive. While true, how policy limits actually impact injury claims involves much more than just a dollar amount.

Here in Nevada, understanding the role policy limits play is crucial for anyone considering a personal injury claim. Limits on coverage, laws specific to our state, and negotiations with insurers all affect your options. With over 40 years handling accident cases, Jack Bernstein Injury Lawyers understands how confusing policy limits can be for clients. To better grasp how insurance coverage applies in these situations, especially regarding bodily injury liability policies in Nevada, it’s helpful to look at how these elements function within the broader claims process.

At Jack Bernstein Injury Lawyers, we make it a priority to educate injury victims on navigating policy limits. Jack’s decades of experience in this field inform how we approach a claim within the constraints that policy limits create.

Understanding Policy Limits in Personal Injury Cases

When you make a claim after an accident, policy limits play a major role in determining compensation. But what exactly are policy limits?

In simple terms, policy limits set the maximum amount an insurance company will pay for a claim. This limit is defined in the insurance policy purchased by the at-fault party. For instance, a policy with $100,000 in bodily injury liability coverage per person would cap compensation for each injured individual at $100,000.

There are a few key types of policy limits:

• Per person bodily injury limits: The max payout per injured person.
• Per accident bodily injury limits: The max payout for all injuries in a single accident.
• Property damage limits: The max payout for property damage.
• Uninsured/underinsured motorist limits: Your max payout if the at-fault driver lacks adequate coverage.

How Policy Limits Affect Claim Value

Policy limits directly impact how much you can recover. Damages exceeding the liable party’s policy limits often go uncompensated. This highlights the need to understand limits when evaluating a potential claim. An experienced personal injury lawyer can help analyze how limits apply to your unique situation. Where more than one party is at fault, it is worth understanding how joint and several liability works in Nevada: under NRS 41.141 each defendant is severally liable only for the portion of the judgment representing its own percentage of fault, apart from a few listed exceptions, so the limits available from each one have to be looked at separately.

Nevada’s Auto Insurance Laws and Policy Limits

Nevada law mandates minimum auto liability insurance requirements that impact policy limits. Currently, the state requires:

• $25,000 bodily injury coverage per person
• $50,000 bodily injury coverage per accident
• $20,000 property damage coverage

However, drivers can purchase policies with higher limits to provide greater protection. Understanding Nevada’s requirements helps gauge whether an at-fault driver has adequate coverage for your damages. Those considering a claim should research the liable party’s precise policy limits.

Nevada law also shapes the coverage you may have on your own policy. Insurers must offer uninsured and underinsured motorist coverage in an amount equal to the bodily injury liability limits sold to you on a passenger car or motorcycle policy (NRS 687B.145). That is an offer requirement rather than a minimum limit, and the coverage sits on your policy rather than the at-fault driver’s, so check your declarations page to see whether you bought it.

Challenges Posed by Policy Limits

While policy limits protect drivers from limitless liability, they can pose challenges for injury victims with damages exceeding the coverage.

For example, a victim requiring $150,000 in medical expenses and lost wages after an accident may only receive $100,000 if that’s the liable driver’s per person policy limit. The remaining $50,000 is not covered by that policy, and recovering it means looking to other sources, such as the underinsured motorist coverage on your own policy, another insured party, or the driver personally.

Multi-claimant accidents under limited policy limits add further complications. Nevada’s minimum per accident limit is $50,000, but accidents often involve multiple injured parties. Divvying up inadequate limits poses difficulties. An experienced attorney can best advise victims facing multi-party limit constraints.

Negotiating with Insurance Companies

Insurers almost always try to settle within policy limits. A first offer is rarely the most an insurer will pay, so refusing it can be wise, but the deadline keeps running: in Nevada a personal injury lawsuit generally must be filed within two years of the accident (NRS 11.190(4)(e)), and different deadlines and exceptions can apply. Documenting all losses is key. An attorney’s guidance can be invaluable when negotiating under policy limits, especially given the common tactics used by insurance companies to limit payouts.

Legal Options Beyond Policy Limits

When damages exceed limits, victims may pursue additional compensation through:

• The liable driver’s personal assets
• Claims against additional insured parties
• Umbrella or excess liability policies
• Underinsured motorist coverage

The Role of Litigation in Exceeding Policy Limits

Lawsuits become necessary to reach compensation beyond policy limits. Litigation can produce a judgment against the liable party personally, but collecting it depends on what that party actually owns: NRS 21.090 exempts a long list of property from execution, including the home, household goods and the tools of a trade. A lawyer may also use litigation and discovery to identify other potential defendants or legal theories that could support additional liability. If you are considering legal action, exploring how to file a personal injury lawsuit in Nevada may offer useful insights.

UM/UIM coverage also helps compensate beyond limits by covering you when at-fault drivers have inadequate limits. Underinsured motorist coverage must let you recover from your own insurer, up to the limits of your own coverage, bodily injury damages that exceed the bodily injury limits carried by the at-fault driver (NRS 687B.145). If more than one vehicle is insured on your policy, ask whether those UIM limits can be stacked for a single accident.

Compensation Strategies and Legal Assistance

When policy limits constrain potential compensation, certain strategies become vital:

• Thoroughly document all accident-related losses and expenses. Photograph injuries, property damage, and the accident scene. Obtain medical records and repair estimates.
• Give detailed statements to insurers explaining the full extent of damages. Provide evidence to support these claims.
• Consult an attorney experienced in claims where the available policy limits are low. A lawyer can negotiate with the insurer and pursue any compensation that may be available under the facts and the law.

Understanding the Role of Umbrella Policies

Umbrella insurance provides additional liability coverage when policy limits fall short. These policies add an extra layer of protection for drivers but also give injury victims another avenue for compensation. An attorney can help determine if the liable party has applicable umbrella coverage to tap into. To better understand how this additional coverage interacts with broader legal limitations, it’s helpful to explore the impact of damage caps in Nevada personal injury claims.

Pursuing fair compensation when policy limits are low often requires legal experience. An attorney can negotiate with the insurer, use litigation where a claim cannot be resolved without it, and identify other possible sources of payment. They act as your advocate throughout that process.

Procedure After an Accident: Practical Steps

Actions you take immediately after an accident impact compensation if policy limits become a factor:

• Report the incident and exchange insurance information. Obtain the at-fault driver’s policy details if possible.
• Document the scene through photos/videos. Gather witness contact information.
• Seek any necessary medical treatment and keep records.
• Consult an attorney, especially if injuries or damages seem significant.

Documenting Evidence for Policy Limit Claims

Thoroughly documenting losses and accident circumstances is vital to support a claim against the available policy limits. An attorney can advise on evidence gathering and preservation tailored to your unique situation.

Though insurers may pressure you to settle quickly, consult a lawyer before signing any releases. An attorney can deal with adjusters and handle the negotiations on your behalf. If you’re facing a denied claim, knowing how to respond when the at-fault driver’s insurance refuses coverage can help you take the right next steps.

Insurance Policy Limits FAQs

Policy limits set the maximum payouts under the at-fault driver’s auto insurance coverage. They cap what that insurer must pay, not what your claim is worth, and damages above the limits may be pursued from other sources such as the at-fault driver personally, other insured parties, umbrella or excess policies, or your own underinsured motorist coverage. Understanding these limits is crucial when evaluating a potential injury claim.

Thoroughly documenting all losses, securing evidence like photos and medical records, giving detailed statements to insurers, hiring an experienced attorney to negotiate on your behalf, and identifying all potential avenues of recovery can help support your claim up to the policy limits.

If your damages exceed the limits, you may be able to pursue compensation through the at-fault driver’s personal assets, claims against other insured parties, umbrella/excess policies, underinsured motorist coverage, or litigation strategies like discovering additional defendants. An attorney can advise you on these options.

Nevada’s minimum auto liability limits are $25,000 per person and $50,000 per accident. The per person limit caps compensation per injured individual, while the per accident limit caps the total payout for all injuries in a single accident. Understanding these differences is key.

Nevada now requires insurers to offer uninsured and underinsured motorist coverage in an amount equal to the bodily injury liability limits sold to you on a passenger car or motorcycle policy (NRS 687B.145). That is an offer requirement rather than a higher minimum limit, and the coverage sits on your own policy, so check your declarations page to see whether you bought it. It can provide additional compensation when the at-fault driver’s limits are insufficient.

You can request policy information directly from insurance companies. Police reports, accident lawyers, and tools like insurance disclosure letters can also help uncover the at-fault driver’s applicable limits and coverage details.

Experienced lawyers negotiate with insurers and use litigation where a claim cannot be resolved without it. They also identify alternative compensation sources beyond just policy limits. Their experience can make a difference in how a claim like this is investigated and negotiated.

You’ll want to obtain the at-fault driver’s auto insurance policy number, carrier, coverage types and dollar amounts. Also gather details on other types of insurance like umbrella policies. An attorney can provide guidance on gathering this information.

If you suffered significant injuries, property damage, lost wages, or have other complex accident-related losses, speaking with an attorney can provide guidance on how applicable policy limits affect your claim and on navigating the claims process.

It’s wise to retain a personal injury lawyer as soon as possible after an accident if recovering adequate compensation is a concern. An attorney can immediately begin gathering evidence, handling the negotiations, and advising you on next steps in light of applicable policy limits on your claim.

With over 40 years handling accident cases, our legal team is familiar with claims where the available policy limits are low. We’ll thoroughly investigate your case, identify all potential sources of coverage, handle the negotiations, and use litigation where a claim cannot be resolved without it.

Contact Us for a Free Consultation

If you have been injured in an accident due to negligence, contact Jack Bernstein Injury Lawyers for a free, no obligation consultation with experienced Las Vegas accident lawyers. You will gain an advocate for every stage in the claims process, and we will pursue your claim to a resolution.

Jack Bernstein Injury Lawyers is available to help you handle your injury claim in the Las Vegas metropolitan area and beyond. Jack Bernstein and his team can offer you personalized service and legal representation after an accident.

Call us at (702) 633-3333 or contact us today for a free consultation to discuss your case.