If you suffer an injury in an accident, you will usually need to file an insurance claim. If the accident was someone else’s fault, then you file with that person’s insurer. If it was your fault, you file with your insurer.
The biggest issue many people have when filing insurance claims is a denial for exceeding policy limits. According to AllState, a coverage limit is the amount of insurance purchased with the policy.
The coverage or policy limit is the highest amount the insurer will pay on a claim. It does not matter if your expenses were more than the coverage limit. This is the most the insurer will pay, and it is all the company must legally pay. You or the other party only purchased coverage for this amount, so the agreement with the insurer was only to pay claims up to the limit.
The problem with insurance coverage limits is they are often not enough to cover all expenses related to an accident. This means you will have to find another way to pay for the costs associated with the incident.
In addition, you may not be aware of the policy limit. You may not know until the insurer denies your claim and returns it to you. You then have to resubmit and deal with the process all over again.
Policy limits are a hard stop for any claim you make to an insurer. It is a good idea to understand them because you have no recourse for fighting a denial based on exceeding the coverage amount.