After a car crash in Alabama, people generally turn to insurance. After all, every driver is required to carry insurance coverage. The biggest insurance companies also spend a lot of effort to brand themselves as helpful and compassionate organizations. It is totally reasonable that the average person expects that an insurance company will take care of them after a crash. Instead, they will often discover that the claims process is quite adversarial.
Not only do people need to watch carefully for signs of insurance manipulation tactics, like stonewalling during negotiations, but they also have to be aware of what is – and what is not – available to them. Ultimately, policy limits play a crucial role in the outcome of car crash claims in Alabama.
Policy limits determine what’s available
Every insurance policy is unique, but they should all comply with Alabama law. People can carry as much liability coverage as they want as long as it meets the minimum standard established in state law. They can also add additional forms of coverage, including uninsured motorist protection comprehensive coverage and collision insurance. Those additions to their policy can provide more protection in the event of a crash. Every type of coverage has set limits.
When someone negotiates with an insurance company, their policy limits ultimately determine the maximum amount of compensation possible. Regardless of what the cost of the crash is, the policy limit represents the absolute most that the insurance company will pay. In some cases, it will be the coverage of the claimant that matters. However, people are frequently dependent on the policies maintained by the other party that caused the crash. Quite a few motorists only carry the minimum required amount of liability coverage.
Drivers may have $25,000 each of property damage and bodily injury liability coverage. The injury coverage available typically doubles in cases with two or more hurt people. Crashes that force people to purchase new vehicles or put them in the hospital may cost far more than what insurance will cover. In some cases, the lack of coverage may make filing a personal injury lawsuit a smart option.
Determining what the policy limits are that apply before beginning insurance negotiations can help people understand their options after an Alabama car crash. Seeking legal guidance is a good way to gain this valuable insight.