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What Do Policy Limits Mean After a Car Accident?

Drivers in the state of New York are required to carry certain insurance coverage with minimums by which they must abide. Unfortunately, not everyone truly understands what the limits of their policy mean and how important they can be.

When it comes to car accidents, however, policy limits are the ultimate form of protection and having higher limits is often recommended for a number of reasons. Here’s how policy limits impact you after a car accident and what it means for you moving forward.

Policy Limits Protect You from Paying Out-of-Pocket Expenses

New York requires you to carry specific liability limits through your insurance. These limits are designed to help pay for compensation when you are the person who caused the car accident. Without these limits, though, the amount of damage that is compensable is your own responsibility.

For instance, when someone carries the minimum coverage of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage, these are the amounts the insurance company helps pay out when you’re considered at-fault.

However, should the damages amount to more than the policy limits cover, those become your own out-of-pocket expenses. For instance, with regards to the $50,000 bodily injury per accident coverage: If there are four people injured because of your actions, each suffering $25,000 in damages, the total is $100,000. If you only have $50,000 in coverage, the remaining $50,000 is your responsibility.

Because of the potential for serious harm in a car accident, it’s imperative that you have a higher limit for a majority of your insurance coverage—including uninsured motorist coverage. This policy protects you should you be injured in an accident caused by an uninsured driver or in the event of a hit and run accident.

You deserve protection when you need to seek compensation against a negligent party’s insurance company, regardless of their policy limits. Our New York car accident lawyers at Levine and Wiss aim to help you every step of the way.

Call us at (888) 973-0344 today if you’ve been involved in a serious car accident caused by someone else’s negligent actions.