Kibbey Wagner Injury & Car Accident Lawyers | February 14, 2025 | Personal Injury
Insurance coverage protects policyholders from various losses and liability. The terms of the policy dictate the type of claims covered by the policy, including the maximum amount the insurance company must pay under the policy. This amount is referred to as the policy limit.
What Are the Required Policy Limits for Insurance Coverage in Florida?
The policy limits for insurance coverage depend on numerous factors, including the type of insurance coverage, state laws, and the company. For instance, Florida no-fault insurance laws require drivers to purchase a minimum amount of Personal Injury Protection (PIP) and Property Damage Liability (PDL). You must have at least $10,000 for each type of coverage. You can purchase higher policy limits if you want more protection if you are involved in a car accident.
In many states, drivers are required to carry liability insurance, with the minimum coverage amount varying by state. While Florida does not require bodily liability insurance for drivers, property damage liability is mandatory. Nonetheless, drivers have the option to purchase liability coverage in various amounts. Liability insurance compensates accident victims for both economic and non-economic damages when the insured is at fault for the accident.
Homeowner’s insurance works differently. Generally, the policy limits for homeowner’s insurance are based on the value of your home or the cost of replacing your home if it is destroyed. A business may purchase business liability policies to protect the company from liability claims.
What Is a Policy Limit Demand in a Personal Injury Case?
An insurance company is only liable for paying claims up to the policy limits. Therefore, if you have minimum PIP insurance coverage, the maximum you can receive for a PIP claim after a car crash is $10,000.
A policy limit demand for a personal injury claim is an offer to settle your claim for an amount equal to the insurance policy limits. However, there is a significant drawback to a policy limit demand.
If you accept a settlement from the insurance company for the policy limits, you give up the right to sue the at-fault driver or other parties. An insurance settlement agreement contains a release of claims. By signing the agreement, you waive your right to pursue any future claims, even claims you may be aware of when you sign the agreement.
Thus, seeking legal advice from an attorney is crucial before you accept a policy limit settlement in a personal injury case. An experienced personal injury lawyer analyzes your claim to determine whether a policy limit demand is in your best interest.
Should I Accept a Policy Limit Settlement for a Personal Injury Claim?
If the insurance company accepts your policy limit demand, it is essential to consider factors such as:
Time and Cost of Suing an At-Fault Party
A personal injury lawsuit can take more than a year to go to trial. Even if you win the case and receive a judgment, the at-fault party may not have sufficient income or the resources to pay the judgment. Also, juries are unpredictable, so you should never assume you will win, even if you have a strong case.
Strength of Your Evidence and Potential Defenses
Injured parties have the burden of proof in personal injury lawsuits. You must convince a jury by a preponderance of the evidence that the at-fault party caused your injuries.
The evidence must convince the jurors there is more than a 50% chance that your allegations are true. In other words, there is a greater chance that what you say is more true than not true. Therefore, you must have strong evidence proving every element of your case.
The at-fault party may raise one or more defenses to your claims. For example, they may accuse you of contributing to the cause of your injuries. If the jurors believe these allegations, Florida’s comparative fault laws could reduce the amount you receive for damages.
Leveraging Underinsured Motorist Coverage
In a car accident case, you may receive additional compensation if you have underinsured motorist coverage. Your insurance company compensates you for damages if the at-fault driver’s insurance coverage is insufficient to pay the entire value of your claim. This option might provide a safer way to collect more money for a claim than suing the at-fault driver.
Contact Kibbey Wagner Injury & Car Accident Lawyers For Help Today
For more information, please contact the Stuart, Port St. Lucie, or Palm Beach Gardens personal injury law firm of Kibbey Wagner Injury & Car Accident Lawyers to schedule a free consultation today.
We proudly serve Martin County, St. Lucie County, Palm Beach County, and its surrounding areas in Florida:
Kibbey Wagner Injury & Car Accident Lawyers Stuart
73 SW Flagler Ave
Stuart, FL 34994
(772) 444-7000
Kibbey Wagner Injury & Car Accident Lawyers Port St. Lucie
1100 SW St. Lucie West Blvd. Ste 202
Port St Lucie, FL 34986
(772) 247-3374
Kibbey Wagner Injury & Car Accident Lawyers Palm Beach Gardens
300 Avenue of the Champions Ste 220
Palm Beach Gardens, FL 33418
(561) 944-4000
