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Is there a limit to insurance payout?

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Notatfault79

Junior Member
Im located in Massachusetts.

Hi everyone

Let me first say I appreciate any advice given. Im really confused.

I was in an accident 6 months or so ago. I was rear ended so hard I was left unconscience. My neck was badly damaged. I have been doing chiropractor ever since and im currently forced to take painkillers every day ( which I despise).

I suffer from migraines nearly every day. (I used to get one or two headaches a year before this accident). My memory is not like it used to be AT ALL. ( i used to be an accountant, now I can barely focus on anything. Ever since the accident, i get "floaties" that nearly cover both eyes. My neck, if I move it in a certain way, feels like the first day of the accident

My life has been really turned upside down.

My lawyer recently told me that they had an offer to settle from insurance company of 20k my health bills are 8k, I would owe the lawyer 5k which would leave me 7k to pay for what looks like is going to be a lifetime injury, im in my early 30's, i have atleast 35 years to work and survive.

Where I messed up, I made a mistake on my insurance at the time and I had no insurance when the car rear-ended me. Trust me this was not a case of me not wanting to pay the 50 dollars a month. It was an honest mistake which the judge agreed with.

My lawyer is telling me that due to this fact I could never get a penny more than 20k ( policy limit) even if I broke both my legs and permanently was unable to walk.

This doesn't sound right? Is there a legal limit on how much an insurance company would pay? In this case 20k? Could I bring them to court?
 


cbg

I'm a Northern Girl
There are no circumstances whatsoever under which a insurance company can be required to pay out a penny more than the policy limit. That's what a policy limit is FOR. If the policy limit is $20K, you won't get $20K plus one cent from the insurance company, and taking them to court would only result in the judge telling you exactly that.

Now, if you were to sue the driver of the car that hit you, it is conceivable that a judge could order him to pay you more than the amount of the insurance limit. But the insurance company would STILL only have to pay out the limit of the policy - the driver would have to come up with the rest of the money himself. Which means you might or might not ever get paid the difference.
 

Notatfault79

Junior Member
There are no circumstances whatsoever under which a insurance company can be required to pay out a penny more than the policy limit. That's what a policy limit is FOR. If the policy limit is $20K, you won't get $20K plus one cent from the insurance company, and taking them to court would only result in the judge telling you exactly that.

Now, if you were to sue the driver of the car that hit you, it is conceivable that a judge could order him to pay you more than the amount of the insurance limit. But the insurance company would STILL only have to pay out the limit of the policy - the driver would have to come up with the rest of the money himself. Which means you might or might not ever get paid the difference.
That was my question, thanks. I didnt understand , nor did i know there was a "policy limit". Sounds like a stupid law. But anything to protect insurance companies. I guess thats what lobbists do.
 

HighwayMan

Super Secret Senior Member
Sounds like a stupid law.

No it's not stupid. What's stupid is you driving with no insurance.

Do you really think your "$50 a month" will buy you millions in coverage? Wake up and face reality. Learn what policy limits are all about.
 

FlyingRon

Senior Member
That was my question, thanks. I didnt understand , nor did i know there was a "policy limit". Sounds like a stupid law. But anything to protect insurance companies. I guess thats what lobbists do.
It's not a "law." When a driver buys a policy, they only buy it for a certain amount. Understand the insurance is a deal between the insurance company and their policy owner. They have NO DUTY to you.

The state law in this case only says the driver needs $20,000 (per person or $40,000 total per accident) of insurance. Some of us who have more assets than $20,000 (hell, I could write you a $20,000 check out of my household account), have higher limits to protect us from bigger lawsuits.
 

cbg

I'm a Northern Girl
It would appear that you do not understand very much about insurance. The premiums on a policy that would pay without limit would be astronomical.
 

adjusterjack

Senior Member
That was my question, thanks. I didnt understand , nor did i know there was a "policy limit". Sounds like a stupid law. But anything to protect insurance companies. I guess thats what lobbists do.
Next time you buy insurance I suggest you read the policy. The policy is a contract between you and the insurance company that protects you from claims made against you up to your liability limits. It would also contain Uninsured and Underinsured Motorists Coverage which would have protected you from being injured by another driver who didn't have coverage, or enough coverage, to cover your claim.

That you didn't have insurance at the time (doesn't matter why) means that what you get from the other driver's insurance company is not a penny more than the policy limit of $20,000 per person because that is what he bought from his insurance company which has absolutely nothing to do with "protecting" insurance companies or the behavior of lobbyists.

Whatever problems you go through life with for which you cannot be compensated is on you for allowing your insurance to lapse.
 

Notatfault79

Junior Member
Next time you buy insurance I suggest you read the policy. The policy is a contract between you and the insurance company that protects you from claims made against you up to your liability limits. It would also contain Uninsured and Underinsured Motorists Coverage which would have protected you from being injured by another driver who didn't have coverage, or enough coverage, to cover your claim.

That you didn't have insurance at the time (doesn't matter why) means that what you get from the other driver's insurance company is not a penny more than the policy limit of $20,000 per person because that is what he bought from his insurance company which has absolutely nothing to do with "protecting" insurance companies or the behavior of lobbyists.

Whatever problems you go through life with for which you cannot be compensated is on you for allowing your insurance to lapse.
From the sounds of it, it doesnt matter what my policy says. It matters what the idiot that hit me policies says. I didnt let my insurance lapse. The insurance companies app was a pos. Which im in the procccess of negotioations with my insurance company. They admited guilt.
 

Notatfault79

Junior Member
It's not a "law." When a driver buys a policy, they only buy it for a certain amount. Understand the insurance is a deal between the insurance company and their policy owner. They have NO DUTY to you.

The state law in this case only says the driver needs $20,000 (per person or $40,000 total per accident) of insurance. Some of us who have more assets than $20,000 (hell, I could write you a $20,000 check out of my household account), have higher limits to protect us from bigger lawsuits.
I could write a check out of my personal account for 100k. And your point is? I didnt couse the accident. The accident shouldnt cost me a dime.
 

cbg

I'm a Northern Girl
Sometimes life isn't fair. If your insurance was lapsed on the day of the accident, that's a shame, but they're the only ones with an obligation to you.

And you know what? YOUR policy wouldn't pay out any more than the limit of the policy, either. That's because you only paid for coverage up to that limit.
 

CTU

Meddlesome Priestess
From the sounds of it, it doesnt matter what my policy says. It matters what the idiot that hit me policies says. I didnt let my insurance lapse. The insurance companies app was a pos. Which im in the procccess of negotioations with my insurance company. They admited guilt.
"Admited (sic) guilt" ... of what, exactly?
 

adjusterjack

Senior Member
From the sounds of it, it doesnt matter what my policy says.
Sure it does.

If your policy said you had $100,000 worth of Underinsured Motorists Coverage you could collect plenty more money than just the $20,000 from the other driver's policy.

How much Underinsured Motorists Coverage did you have on your policy before it lapsed?

im in the procccess of negotioations with my insurance company. They admited guilt.
If they "admitted guilt" they should have reinstated your policy and covered you for Underinsured Motorists.

Did they do that?
 
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FlyingRon

Senior Member
I could write a check out of my personal account for 100k. And your point is? I didnt couse the accident. The accident shouldnt cost me a dime.
Again, your claim of liability is against the driver who injured you. The insurance company is only on the hook to provide money to them to the limit they contracted. It has nothing to do with "Right or wrong" to you. The insurance company isn't some social service to you, it's a contractual arrangement between their customer and them. The $20,000 was just the easy money to attach, any more than that you're going to have to seek a judgement, and the abiltity to perfect that from the responsible party (which is not the insurance company).
 

ecmst12

Senior Member
It sounds like there is a law in MA that limits the recovery for uninsured drivers even when they are not at fault.
 

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