How Policy Limits Impact Pennsylvania and New Jersey Injury Claims
Insurance policy limits shape injury claims. These limits define the maximum amount an insurance company will pay on a claim, and they often set the practical boundaries for recovery. To pursue the full and fair compensation you deserve, discuss how policy limits work and how to navigate them with a Bucks County personal injury attorney.
What Are Policy Limits?
Policy limits are the caps on what an insurance policy will pay for damages. In auto accident cases, this typically includes bodily injury liability coverage (per person and per accident) and property damage coverage.
For example, if a driver has a $50,000 per-person bodily injury limit, that is generally the most their insurer will pay to a single injured party, regardless of how severe the injuries are. If your damages exceed that amount, you must look beyond that single policy to recover the difference.
Both Pennsylvania and New Jersey require drivers to carry minimum insurance coverage, but those minimums are relatively low compared to the cost of serious injuries.
Pennsylvania operates under a choice no-fault system, meaning drivers select either limited tort or full tort coverage. Limited tort can restrict your ability to recover pain and suffering damages unless your injuries meet certain legal thresholds.
New Jersey also follows a no-fault system, with Personal Injury Protection (PIP) coverage paying initial medical expenses regardless of fault. Yet like Pennsylvania, liability coverage limits still control how much you can recover from the at-fault party for additional damages.
In both states, it is common for policy limits to fall short of fully covering medical bills, lost income, and long-term care needs in serious cases.
What If It’s Not Enough?
If your injuries are significant, the at-fault driver’s insurance policy may not provide enough compensation. This is where a strategic approach becomes critical.
One option is to identify additional insurance policies. There may be multiple layers of coverage, such as umbrella policies, employer coverage if the driver was working at the time, or coverage tied to the vehicle owner.
Your own insurance policy can also play a role. Uninsured and underinsured motorist (UM/UIM) coverage is designed to step in when the at-fault party’s insurance is insufficient. In both Pennsylvania and New Jersey, this coverage can provide an additional source of recovery.
Without representation from a skilled Bucks County personal injury attorney, you may be pressured into accepting a settlement that does not fully account for your losses.
In some situations, if an insurance company fails to act in good faith, such as by unreasonably refusing to settle within policy limits, there may be additional legal remedies available.
Does an insurance policy limit worry you? Policy limits play a central role in Pennsylvania and New Jersey injury claims, often determining how much compensation is realistically available. However, they are not always the final word. Partner with the knowledgeable attorneys at Kevin L. Hand, P.C. to explore every available avenue and access the full recovery you need to move forward. Call 215-515-2604 to schedule a confidential consultation.
