It’s always comforting to know that if you’re in an injury accident, your insurance company will take care of you. However, accepting a settlement for policy limits is the third biggest mistake you can make.
A policy limit is the maximum amount of money the insurance company is contractually liable to pay out, which can be sold in specified combinations of an amount per person, per accident, per vehicle.
For example, let’s say that you are paying monthly for a loan on a $20,000 car. You get in an injury accident and your insurance company totals your car. They will only give you $10,000, which doesn’t cover the rest of your car loan. They don’t mention your medical needs nor do they bother to pay your for them. You accept the check.
Further more, Kansas has a specific law requiring a 60 day notice by certified mail including authorization to obtain medical records and wage loss—failure to specifically comply means you forfeit the right to make additional claims of up to $25,000 or more.
Going ahead and accepting those policy limits can have a range of consequences, including not getting paid for your medical needs, time off from work or full car damages.
For more information give us a call at 1-800-426-6129 or visit The Law Center for Car Accident Injuries.