What is a Policy Limits Settlement in New York

When someone is hurt in a serious accident, they often want to know how much they can recover through an insurance claim. A policy limits settlement happens when an insurance company pays the full amount of a policy to resolve a personal injury case. In many situations, a policy limits settlement in New York comes down to whether the insurance company is willing to offer the maximum payout because the injuries are serious and the damages are clear. Our team of experienced attorneys at The Barnes Firm can assist you with reviewing your situation.

Understanding Policy Limits in New York

In New York, every registered vehicle is required to have minimum levels of liability insurance. According to the New York State Department of Motor Vehicles (DMV), drivers must carry at least:

• $10,000 for property damage per accident
• $25,000 for bodily injury per person
• $50,000 for death for a person involved in an accident
• $100,000 for the death of two or more people in an accident

These figures represent the policy limits, the highest amounts an insurance company will pay for each person, and the total accident. These limits provide basic financial protection but don’t always cover the full costs of serious injuries, especially in cases involving long-term medical care or permanent disability. Other options may need to be considered when damages exceed those amounts, such as reviewing additional policies or pursuing legal claims to help cover remaining expenses.

How Policy Limits Can Influence Your Injury Settlement

The policy limit can make a big difference in the outcome of your case. If your injuries and losses are worth more than the at-fault party’s insurance policy, you may only be offered a settlement up to that policy’s maximum.

Insurance companies often settle cases for the full policy limit when the injury is serious, and the damages exceed that amount. This is called a policy limits settlement, and it happens when there’s no dispute about liability, the injuries are well-documented, the damages outweigh the available insurance coverage, and there’s a need to resolve the case without further delays. These types of settlements can bring faster closure, but they also require a close look at all available insurance to be sure nothing is overlooked.

Examples of Claims Within New York Insurance Limits

Let’s say someone suffers a broken arm and some lost wages after a rear-end accident. The claim could settle within the policy limits if their medical bills and lost income add up to $18,000, and the at-fault driver has a $25,000 bodily injury limit.

Or, take a minor slip and fall at a business, resulting in a sprain with a few doctor visits. A settlement might stay well within a $50,000 per accident limit. These cases show how the severity of the injury directly affects whether a claim stays within policy limits.

What Happens When Damages Surpass Policy Limits?

According to New York State Insurance Law ISC §3426, when damages exceed the at-fault party’s policy limits, claimants may pursue additional compensation through an excess liability or umbrella insurance policy, if one exists.

How to Seek Additional Compensation Beyond Insurance Limits

When policy limits don’t come close to covering medical bills, lost wages, and pain and suffering, there may be other ways to recover compensation.

Supplemental Coverage or Other Policies

One option is to look for underinsured motorist coverage on your policy. This coverage helps when the other driver doesn’t have enough insurance. Another possibility is finding an umbrella or excess liability policy held by the at-fault party, which can provide extra funds in serious injury cases.

Commercial vehicles and companies often carry higher limits or extra policies that may apply. These extra policies can make a big difference in high-value claims.

Suing the At-Fault Party Directly

Another route is to sue the person or company responsible for the injury. While not always practical, this can be an option if they have assets or income that could be used to pay a judgment. This approach can sometimes help recover amounts beyond the original policy limits, especially when other insurance options are unavailable. However, this process can take longer and may involve more complex legal steps, such as asset investigations and potential court proceedings.

The Benefits of Working with a New York Injury Attorney

Handling a claim that involves policy limits can be stressful. From dealing with adjusters to reviewing insurance paperwork, there are many moving parts. An attorney can help explain your rights, investigate available insurance coverage, and push for a full and fair settlement.

At The Barnes Firm, we’ve handled many serious injury cases in New York. We know how to evaluate all available coverage, and we focus on helping clients understand their legal options while we take on the hard work of building their claims.

Get a Free Legal Consultation with The Barnes Firm

Wondering what is a policy limits settlement in New York and whether it applies to your case? Our legal team is here to help review your situation, explain your options, and discuss the next steps based on your unique circumstances. Contact The Barnes Firm today at (800) 800-0000 for a free case evaluation.

Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

Years of Experience: 30+ years
LinkedIn Profile: Richard Barnes