Liability Insurance Policy Limits

The Policy Limit of an insurance policy is the amount of insurance coverage available for a particular loss. There are limits on all the various coverages on an automobile policy. Liability Coverage is the coverage for the party at fault and is paid to the victim of the at-fault party’s negligence. The State of Colorado allows one to have as little as $25,000 per person per accident and $50,000 for all involved or injured as a result of the negligent party’s negligence causing a particular accident. If you are injured due to the negligent operation of a motor vehicle covered by a liability policy of $25,000 per person and $50,000 per accident you will only be able to recover $25,000 from that persons liability insurance coverage. If more than one person is involved the total coverage is a total of $50,000 with each individual only getting $25,000. This can be rather limiting in accidents where many parties are injured. Many drivers have far more coverage and one can purchase Uninsured/Underinsured coverage to avoid this problem.
Determining how much insurance coverage is available is extremely important. If liability limits are insufficient one can turn to underinsured motorist coverage. Several policies of coverage can be available arising out of any single accident. Identifying which policy must pay takes knowledge and experience and should not be left to the adjuster for the insurance company adjusting the claim. If you have questions regarding liability coverage and policy limits seek competent legal advice. At Anderson & Lopez we have helped thousands of accident victims get the money they deserve. Call us today at (719) 471-1818.