Settlements Exceeding Policy Limits – How Often does it Happen?

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Policy limits usually limit payment in some settlements, but that’s not always the case. No one thinks of getting involved in an auto accident. Nevertheless, a report by Esurance states that almost 77% of drivers have been in at least one accident in their lifetime. If you are among the 23% who haven’t been in a car accident, consider yourself lucky or overdue.

After a crash, a victim gets settlement from the at-fault driver. Often, victims who do not employ a car accident attorney get less than their insurance policy limit. But there are few instances when the person gets above it. This article will cover how often settlements exceed the policy limit.

What Kinds of Accidents Require Settlements?

Accidents are bound to happen and are of various types. However, specific jobs, lifestyles, and careers predispose one to more significant risks of some kinds of accidents.

Ordinarily, safety measures should be put in place to minimize risks. However, if an accident happens due to another person’s negligence or fault, there’ll be a liability.

Here’s a list of some accidents that require settlements:

  • Automobile accidents
  • Slip and fall accidents
  • Motorcycle accidents
  • Work-related accidents

What Is an Accident Settlement?

An automobile accident settlement is an informal agreement between an accident victim and the liable party to resolve legal claims for damages. Typically, in a settlement, the victim agrees to withdraw any filed suit or not sue entirely.  The agreement comes in exchange for a payment of an agreed amount by the party at fault.

If you or your loved one has ever been a victim of an automobile accident, you understand that it can be overwhelming. You have injuries and significant financial strain to contend with.

Sometimes, even with insurance, particular injuries can incur bills not covered by the policy. Most accident victims opt for settlements to avoid the hassles of a protracted lawsuit.

However, you will need an experienced car accident attorney to negotiate your accident settlement. Typically, a lawyer negotiates an amount on behalf of the victim. The insurance company or liable party’s lawyer makes a counter offer. They go back and forth until they come to an amount agreeable to both sides.

It’d be best to have an experienced automobile accident lawyer with you due to how these negotiations go. The negotiation process can be as short as a few hours or last for days, depending on the attorneys involved.

Georgia Atlanta Policy Limit for Accident Settlement

According to Georgia laws, parties involved in car accidents are to report immediately to the police. Except there are no injuries, death, or property damage that’s below $500. However, you’re to provide your personal information, license, and insurance number to the other party. You are also required to offer the injured party assistance in getting medical treatment.

In Georgia, the policy limit for car accidents are as follows:

  • $25,000 for property damage
  • $25,000 for death or injury of one person
  • $50,000 for death or injury of more than one person

For the parties involved and their lawyers to arrive at an accident settlement, they must consider the following:

  • Medical bills
  • Insurance coverage
  • Lost wages
  • Pain and suffering
  • Auto repairs or replacement

Accident settlements differ depending on the type and injuries suffered, death, and damages to vehicles and properties if any.

How Often Do Settlement From Auto Accidents Exceed the Policy Limit in Georgia?

According to Georgia laws, the maximum policy limit for settlement is $50,000. Unfortunately, there are auto accidents that have liabilities that exceed the maximum liability limit.

In such an instance, the victim is entitled to an auto accident settlement that exceeds the policy limit. Unfortunately, it’s quite rare, as they rarely exceed their limit. The advice given to drivers is to take further actions to protect themselves.

They can have uninsured motorist (UM) coverage. Having the UM coverage protects drivers in situations where they’re at fault and the liability is above the policy limit. The accident victim can decide to sue the driver and their assets taken as compensation if they do not have additional insurance coverage.

You Need an Auto Accident Settlement Attorney

As rare as it is to get settlements above the policy limit, it is not entirely impossible.  There are options you can explore. However, you’ll need an attorney who has experience in auto accident settlements.

At Calvin Smith Law, we have lawyers with years of experience and expertise waiting to assist you. If your injuries exceed the policy limit, we will ensure you get what you rightly deserve. Consult us for a free case review today.

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