A policy limit is the maximum amount of money an insurance company is required to pay out in compensation in a personal injury case. Insurance companies are contractually and legally obligated to pay for the damages their policyholders are liable for — up to a point. Once your economic damages and non-economic damages exceed the policyholder's policy limits, the insurance company does not have to pay you any more.
Policy Limits Under Different Plans
The policy limits under the plan you are making a claim against depend on where you were injured and the nature of your accident. If you were injured in a car accident, the other driver is likely to have a $25,000 limit per person injured and a $50,000 limit per accident, the minimum requirements under both Illinois and Missouri law.
In a truck accident, medical malpractice or product liability claim, the liable party is likely to be covered by hundreds of thousands, if not millions, of dollars.
In any case, whether or not your damages will be covered under an insurance plan depends on the severity of your injuries and that plan's policy limits.
How to Get More Than the Policy Limit
If your damages exceed the policy limits, there are some avenues through which you can seek more money in order to be fully compensated:
- You can file an underinsured claim under your own coverage.
- Your attorney can determine if there are other at-fault parties responsible for your injuries, and file claims against them.
- Sometimes, the defendant has an umbrella policy that has additional coverage.
- You can file a lawsuit against the defendant themselves, for example, the other driver in a car accident, in addition to filing a claim against the insurance company. This may or may not be effective, as the liable party may not have the income or assets to fully compensate you.
- In Missouri, you can file a claim with the Tort Victims' Compensation Fund, which compensates people for their injuries if the negligent party had little to no insurance or went bankrupt.
If your damages exceed an insurance plan's policy limits, or you are having other problems collecting compensation for your injuries, it is best to consult with a personal injury attorney to discover how to best proceed.