Insurance limits refer to the maximum amount an insurance company will pay out for a claim under a specific policy. It can also be referred to as an insurance policy limit. Essentially, the insurance company agrees to cover eligible losses or damages up to a certain dollar amount. For example, let’s say a driver rear-ends you and causes you to go to the hospital. If you decide to file a claim against their insurance, and the insurance policy goes up to $50k, then the most you could receive from that claim is $50k.
If this limit is exceeded, then the policy holder is personally responsible for paying the difference. This makes personal injury claims a little more complicated, but we can help. For any questions about your insurance claim after an injury, contact Maison Law today for a free reveiw of your incident.
Insurance Company’s Role in a Personal Injury
In personal injury matters, you can sue the person who caused your injuries to hold them responsible for your damages. A lawsuit is typically filed with the courts and notifies the at-fault party of the allegations and the damages they are responsible for. The liable party will send the lawsuit to their insurance company and an insurance adjuster will be assigned to investigate the claims within the lawsuit. If the adjuster finds the insured person is liable for causing the claimant’s injuries, the company may make a settlement offer to resolve the lawsuit.
The difference between a claim and a lawsuit is that a lawsuit can go to trial and be decided by a judge or jury. Lawsuits can be directly filed against the insurance company of an at-fault party by alleging bad faith insurance practices. This means the company acted in bad faith and refused to resolve the claim.
How Long Does it Take to Receive Compensation After an Insurance Claim?
Insurance companies must conduct an investigation within 15 days of being notified of a claim. Also, insurance companies have 40 days to accept or deny a claim. If your claim is straightforward and liability is not an issue, your claim can be solved in a matter of days. However, if establishing liability is an issue, or if there are significant injuries involved, your claim can take longer. Proving liability takes time, often stretching cases out by many months or years.
To speed up your claim, you can provide the insurance company with irrefutable evidence such as medical records, photos, and witness contact information. Once your claim has been investigated, you’ll most likely receive a settlement offer from the insurance company. This amount typically provides you with the amount necessary to pay for your car repairs and medical treatment after the accident. The majority of these offers, however, are “low-ball” offers. Insurance companies typically offer as little as possible as far as settlements as they’re looking out for their bottom line instead of fully compensating you for your damages.
How are Payments Received for an Insurance Claim?
If you and your insurance adjuster agree on a settlement amount, your insurance company will require you to sign a release form before your payment can be issued. California Code of Regulations Section 2695.7(h) requires all insurers to issue payment within 30 days of accepting the claim. However, some insurance policies include a waiting period that can extend this duration. A payment from your insurance claim can come in the following forms:
- Direct payment via check or electronic deposit
- Payment to your service providers such as your medical providers or vehicle repair shops
- A payment to your lien holders
If your claim is denied, you can still recover compensation by filing a lawsuit against the insurance company through a personal injury attorney. An attorney will advise you on your legal options and inform you about the damages you are entitled to claim.
Contact a Personal Injury Lawyer in California
If you or a loved one has been injured in an accident, the attorneys at Maison Law can help you get the compensation you need. Even if you were found partially at fault or the insurance company denied your claim, you are still entitled to fair compensation. Contact Maison Law today for a free consultation and case evaluation. Our firm does not require any upfront payments for our services, and we don’t get paid unless we win your case.
