Insurance policy limits set the maximum amount an insurance company will pay on a claim. In many Louisiana car accident cases, that maximum becomes the practical ceiling on your settlement, no matter how badly you’re hurt.
If the at-fault driver carries only the state minimum of $15,000 per injured person, their insurer usually won’t pay more than that, even if your medical bills alone are several times higher.
Other sources of coverage, such as your own uninsured/underinsured motorist (UM) policy or an employer’s commercial policy, can sometimes fill the gap. Identifying every available policy is often the key to a fair recovery on a Baton Rouge car accident claim.
At Chris Corzo Injury Attorneys, our car accident lawyers in Baton Rouge will work to identify all potentially liable parties to maximize your recovery. Call our accident attorneys today at (225) 999-1111 or visit our contact page to schedule a free consultation and discuss your claim.
What Are Insurance Policy Limits?
Every auto liability policy has a limit on what the insurer will pay. Louisiana’s minimum required coverage under La. R.S. 32:900 is often written as “15/30/25”, which means it will pay up to the following amounts:
- $15,000 for bodily injury to one person
- $30,000 total for bodily injury to everyone hurt in one accident
- $25,000 for property damage in one accident
Many drivers carry higher limits, but many Louisiana drivers buy only the minimum. It’s also important to understand that limits are maximums, not guaranteed payouts. The insurer pays only what your documented damages support, up to the limit.
Why Do Policy Limits Matter So Much?
Even minor injuries can quickly exceed policy limits when an at-fault driver only carries the minimum coverage. Serious or catastrophic injuries can exhaust those limits within a few hours or days.
Once the insurer pays out the policy limit, they have no further obligation. The remaining expenses or losses become the at-fault driver’s responsibility. However, many drivers do not have sufficient personal assets to cover the damages suffered by an injury victim.
The size of the policy often affects the value of a claim as much or more than the severity of the injuries does.
At Chris Corzo Injury Attorneys, our Baton Rouge accident lawyers leave no stone unturned when investigating your accident. We work diligently to determine all possible causes and potentially liable parties to maximize the available sources of compensation for your damages.
How Do You Find Out What Coverage the Other Driver Has?
The at-fault driver’s insurer may not tell you what the policy limits are right away. Some ways to get that information are:
- Your car accident attorney can request the limits directly from the insurer, sometimes with the policyholder’s authorization.
- A police report, insurance card, or information exchanged at the scene can sometimes identify coverage amounts.
- If a lawsuit is filed, the policy limits can be obtained through the formal discovery process.
An experienced accident lawyer in Baton Rouge will work to determine the policy coverage limits early in the claims process.
What Happens When Several People Are Hurt in the Crash?
The per-accident limit is shared by everyone injured. If the at-fault driver has minimum coverage and three people are seriously hurt, those three people split a total of $30,000. No single person can receive more than $15,000.
Claims from different victims compete for the same limited pool of money, so moving quickly and documenting damages thoroughly can protect your share.
In some cases, the insurer may deposit the full policy limits with the court and ask a judge to divide them among the claimants. This is known as a concursus proceeding under La. C.C.P. Art. 4651.
Property damage limits work the same way. A single $25,000 limit may have to cover several damaged vehicles.
Other Coverage That May Pay Damages
When the at-fault driver’s policy isn’t enough, other insurance may be available. Possible sources include:
- Your own UM coverage. Louisiana requires insurers to include UM coverage unless you reject it in writing on an approved form. UM coverage can pay when the at-fault driver is uninsured or doesn’t have enough insurance.
- Medical payments coverage. This optional coverage helps pay medical bills regardless of fault.
- An employer’s policy. If the at-fault driver was working at the time, the employer and its commercial insurance may be responsible under La. C.C. Art. 2320. Commercial policies often carry much higher limits.
- The vehicle owner’s policy. If the driver was using someone else’s car, both the owner’s policy and the driver’s own policy may apply.
- Umbrella or excess policies. Some drivers carry extra coverage on top of their auto policy.
Louisiana has rules that generally limit combining, or “stacking,” UM coverage from multiple policies, so the details of each policy matter.
Can You Recover More Than the Policy Limits?
Sometimes you can recover more than the policy limits. However, it’s not an easy thing to do. A court judgment against the at-fault driver can exceed the policy limits, and the driver is personally responsible for the difference.
Collecting that money is another matter, since many people don’t have significant assets, and Louisiana law protects some property from collection.
In some cases, an insurer that unreasonably refuses to settle a claim within its policy limits may face exposure beyond those limits. These cases depend heavily on the facts and on what happened during negotiations.
Should You Accept a Policy Limits Offer?
A quick policy limit offer can feel like good news, and sometimes it’s the right choice. Before you sign anything, though, make sure you won’t give up other rights. A release given to the at-fault driver’s insurer can affect claims against other parties.
Settling in the wrong order can create problems with your own UM claim. Medical liens and health insurance reimbursement claims may also need to be resolved from the settlement. You should consult an experienced car accident attorney before settling your claim.
Talk With a Baton Rouge Accident Lawyer About Your Coverage Options
Low policy limits can make a serious injury feel even more overwhelming, but they don’t always tell the whole story.
At Chris Corzo Injury Attorneys, our team of car accident lawyers will dig into every available source of coverage and give our clients honest guidance about what their case can realistically recover.
Contact a car accident attorney in Baton Rouge today at (225) 999-1111 or visit us online to schedule a free consultation.