Insurance
Policy limits
Policy limits are the maximum amount an insurance policy will pay for a claim, and they frequently cap a claimant's practical recovery regardless of how severe the injuries are.
A catastrophic injury caused by a driver carrying minimum coverage may recover only that minimum, unless there are other sources such as an employer's policy or your own underinsured motorist coverage.
Confirming the limits is one of the first things an attorney does, and one of the first things funding underwriting looks at.
Related terms
- Underinsured motorist coverage — Underinsured motorist coverage is part of your own auto policy that pays when an at-fault driver's insurance is insufficient to cover your injuries.
- Liability — Liability is legal responsibility for causing harm, and establishing it is the first requirement of any injury claim — without it, the extent of the injury does not matter.
- Damages — Damages are the money awarded to compensate for harm, divided into economic damages such as medical bills and lost wages, non-economic damages such as pain and suffering, and in rare cases punitive damages intended to punish.
Need the money rather than the definition?
Apply in two minutes, or call 813-798-5528 and we will explain any of this on the phone.