What Is a Policy Limit?

A policy limit is the maximum amount of money you can recover from a particular insurer when you file an accident claim. For example, in Maryland, car insurance minimums are set at $30,000 per person for bodily injuries (up to $60,000) and $15,000 for property damage.

Anyone filing a claim against such a policy could recover up to $30,000 for their injuries and $15,000 for property damage.

Our Maryland car accident lawyers can explain how these limits apply to your claim and how you can fight for the damages you deserve, no matter what the involved policy limits are.

How do Policy Limits Affect Your Claim?

Policy limits play a defining role in many accident injury claims, so it is important for you to understand how they work. Here is a more detailed example of how policy limits work in Maryland:

• Say that you were hit by a speeding driver who carries the minimum required auto insurance: $30,000 per person for bodily injuries and $15,000 for property damage.
• Your accident ends up costing you $50,000 in medical bills and $10,000 in car repair bills.
• Your medical bills exceed the liable party’s policy limit for bodily injury ($50,000 versus $30,000), so you would be left with at least $20,000 in unpaid medical bills, even if your claim against the liable party was successful.
• Your car repair bills are less than the liable party’s policy limit for property damage ($10,000 versus $15,000), so a successful claim could cover the entire amount.

A personal injury lawyer from our firm can demand an amount that matches your past, present, and projected losses while staying within all applicable policy limits.

Policy Limits Versus Types of Damages

A policy limit defines the total amount that you can recover when you file a claim. It also, to a greater or lesser extent, tells you what kind of damage the policy covers.

For example, Page 11 of “A Consumer Guide to Auto Insurance” explains that Maryland’s car accident liability insurance covers:

• Property damage, which provides you with funds to repair or replace your vehicle or other property damaged by the policyholder’s negligence
• Bodily injury, which provides coverage for the lost wages, medical bills, and physical and emotional trauma of anyone injured by the policyholder’s negligence

Liability insurance also covers the policyholder’s legal fees if they are sued. You could file a lawsuit if, for instance, the insurance company fails to offer a fair settlement.

What if Your Damages Exceed Your Policy Limits?

This is an all-too-common scenario, especially in cases where the accident victim suffered a catastrophic injury. There are several ways that our auto accident lawyers can pursue the money you need if a single policy’s limits do not cover all of your losses. These strategies generally involve finding multiple insurance companies under which to file your claim.

Available policies may include:

The At-Fault Party’s Liability Insurance Policy

If another driver caused your accident—for example, if they ran a red light or did not signal before making a left turn—then they and their liability insurance are responsible for paying your losses. We can prove you qualify to file such a claim by:

• Collecting evidence of the driver’s negligence
• Citing any relevant laws that prove the driver failed to fulfill their duty of care towards you (e.g., they drove drunk, which violates Md. Transportation Code § 21-902)
• Collecting evidence of the injuries you have sustained or will likely sustain in the future

If there is more than one liable party in your case—for example, if you were injured in a multi-vehicle collision where more than one driver exhibited negligence—you could file claims under multiple liability insurance policies. This could greatly increase the amount of money you recover.

Your Uninsured/Underinsured Motorist Liability Policy

This type of policy may help you under the following circumstances:

• You were hit by a driver who violated state law by not purchasing sufficient liability insurance.
• You were injured by a hit-and-run driver who fled the scene and cannot be found or identified.
• Your policy limits are higher than the other driver’s.

UIM policies cover both bodily injury and property damage. The minimum required coverage amounts are the same as they are for regular liability insurance: $30,000 per person for bodily injury and $15,000 for property damage.

Your Personal Injury Protection Policy

Personal injury protection (PIP) coverage pays for your medical bills and lost wages, regardless of who caused the accident. With this kind of claim, you do not have to prove liability: you just have to show that you were injured in a motor vehicle accident.

The Maryland Motor Vehicle Administration (MVA) states that PIP coverage is not required, although insurance companies are required to offer it to you. Our law firm recommends you purchase it anyway to maximize your auto insurance and give you more options in the event of a crash.

Other Kinds of Accident Insurance Policies

In Maryland, you have the option of purchasing several other kinds of car insurance, including medical payments coverage (which pays for medical bills that exceed your PIP policy limits) and collision coverage (which pays for damage to or destruction of your vehicle).

Since these policies are not mandatory, limits can vary widely from person to person. Our auto injury lawyers can review all available policies—both yours and the liable party’s—to determine the best way of seeking the money your family needs to rebuild your lives.

Learn More About Your Insurance Policy Limits With Our Accident Lawyers

Adam Smallow Injury Lawyers can work within the policy limits set by the insurance company to get you the money you need for all of your losses. Call now to find out more for free.

Once you hire us, our personal injury attorneys will give you a unique phone number that you can use to contact us at any time, day or night.