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How Often Do Auto Accident Settlements Exceed the Policy Limits?

By Karnas Law Firm |

When it comes to car accidents, many people automatically think of the potential for serious injury. And while that is certainly a valid concern, another major issue that often arises in these situations is insurance claims and settlements. In particular, how often do they exceed the policy limits?

Multiple At-Fault Drivers

There may be more than one at-fault driver in some car accidents in Phoenix, Arizona. It can complicate matters when it comes to insurance claims and settlements. If each driver has their policy, then the settlement could exceed the limits of both policies.

Since such cases may be complex, you need to hire an experienced lawyer. You want a Phoenix Car Accident Attorney who will help you prove negligence by the different parties. It’s important because if you can show that another driver was at fault, you may be able to collect damages beyond the policy limits.

Bad Faith Issue With the Insurance Company

In some cases, the issue may not be with the other driver but with your own insurance company. If your insurance company denies your claim or offers you a low settlement, you may have what is known as a “bad faith” issue. It means that the insurance company is not acting in good faith and is not treating you fairly.

If you can prove that the insurance company is not acting in good faith, the court may order more compensation than the settlement offered. This is known as “punitive damages” and is meant to punish the insurance company for its bad actions.

Umbrella Policy on the Defendant Side

In some cases, the other driver may have an “umbrella policy.” This type of insurance provides additional coverage beyond the standard policy limits. If this is the case, the settlement could be more.

It’s why it is crucial to have a lawyer who knows how to investigate these matters. They will look into whether or not the other driver has an umbrella policy and help you get the total amount of compensation you deserve.

Capitalizing on the Settlement

It is possible to “capitalize” on the settlement in some situations. This means that you can receive more money than the settlement offers.

For example, if you have a pending lawsuit against the other driver, you may be able to use the settlement as leverage to get a higher award from the court. In addition, if you have a personal injury claim, you may be able to use the settlement money to pay for your medical bills and other expenses.

It is essential to talk with a lawyer about your specific situation to see if there are any ways that you can capitalize on the settlement. When it comes to car accidents, one of the most important things to focus on is the long-term effects that the accident may have. It includes both physical and emotional injuries. In some cases, it is possible to get a settlement that will cover the costs of future medical expenses.

As you can see, there are a few different situations in which the total amount of the settlement could exceed the policy limits. If you have been involved in a car accident, it is crucial to speak with a lawyer to help you get the compensation you deserve.

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