Stockton Injury Attorney Explains Auto Insurance Policies
We are all required by law to carry automotive insurance if we choose to drive a vehicle, and that insurance is in place to cover any liabilities that may arise from our driving. Every state has a different set of minimum limits that a driver is required to carry, and these limits are imposed to ensure the monetary protection of all the other drivers on the road that you may come into contact with.
The three main types of insurance limits are the
- “Aggregate limit” (this limit rarely applies to auto insurance),
- the “Per Occurrence” limit and
- the “Per Person” limit.
If you have been in a car accident contact a Stockton injury attorney to get advice about your specific automobile accident case.
The aggregate limit of an insurance policy represents the total amount of damages that can be incurred and paid out by the policy in a given policy year (insurance policies are often written on one year terms). For example, if your aggregate policy limit is $1,000,000, the total damages paid out resulting from one or multiple claims cannot total more than $1,000,000 in a given policy period. If you caused a car accident in January that paid out $800,000 in total damages, and you caused another accident in July that totaled $500,000 in damages, the insurance policy would not cover the entire second accident, it would only pay out a maximum of $200,000, because the $1,000,000 aggregate limit was reached ($800,000 + $200,000 = $1,000,000).
Per Occurrence Limit
The Per Occurrence insurance limit controls exactly what the name applies – the maximum amount of claim dollars that can be paid out resulting from one automotive accident, also known as an occurrence. As an example, if your insurance policy has a $300,000 per occurrence limit, and you caused a 10 car pile-up on the highway, your insurance policy will cover a maximum of $300,000 of damages in total, even if the total damages of the accident totaled over $1,000,000. The insurance company itself determines the payment schedule and who will receive payout dollars, but it is usually evenly split amongst the claimants if the insurance limit will not cover the total.
Per Person Limit
As the name implies, this limit controls the maximum amount that can be paid to any single claimant during an occurrence. We will bring you back to the last example to try and explain the per person limit. The 10 car pileup that you caused resulted in injuries sustained to 12 people. 10 of the 12 suffered minor injuries to themselves and their vehicles, but two of the individuals involved sustained serious injuries and their medical bills each total $300,000. The per person total on your insurance policy is $50,000, meaning that any individual claimant is only able to collect a maximum of $50,000 from your policy, regardless of their total damages sustained.
Insurance policies and the limits they carry can confuse for the most experienced professionals, don’t try and handle your case on your own! The injury attorney at this law firm have been securing insurance payouts for injuries sustained during automotive accidents for years and are ready to help. Call us for a free consultation today!
An Accident Attorney Can Help Get You The Compensation You Deserve
Please give our office a call today for a free consultation with our Stockton injury attorney – its OK if you didn’t follow the steps and have no idea who hit you, we can help!