Claim Exceeds Policy Limits
When an insurance company refuses to pay out on the agreed policy claim limit in the event where the damages exceeds the coverage limits, they can be subject to a no win no fee claim. Such an occurrence is not an isolated incident. If the same case goes to trial and a jury awarded damages in excess of the stated policy limits, then the insurance provider can be on the hook for both the full amount and the interest accrued. In other words, if you win your case, you have already paid the plaintiff’s attorney fees and are entitled to the full amount as well as legal costs.
Another reason for a no win no fee claim is when you sue a driver for damages that exceed the insurance policy limits established by the at-fault driver. For instance, if you rear-end another car because the at-fault driver failed to yield, and you suffered personal injuries, then the damage to your car was more than the liability limits established by the at-fault driver. Although the other car owner may have been negligent, it is still within the bounds of the insurance policy. Likewise, if you sue the driver for damages that exceed your policy limits (for example, if you are injured in a car accident and file a claim against the driver for medical expenses, but the car accident’s damage exceeds your insurance policy’s limits), you may still be partially liable even though you are not at fault.
Sometimes, a no win no fee claim turns out to be financially harmful to the defendant’s insurance carrier. Suppose you are seeking damages for an accident in which the other motorist drives over your dog. Even if the other driver has a legitimate reason not to yield, or has a legal obligation to do so, the fact that he or she didn’t yield creates a danger to your dog. If, due to your dog’s injury, you are no longer able to earn a living, then the no win no fee claim may have created a financial hardship on the defendant. Your claim could have also been denied for other reasons: the claim exceeds policy limits, there is a conflict between the facts and the insurance policy, or the claimant failed to disclose certain important information about the accident.
Why Claim Exceeds Policy Limits
In the first example above, the claim exceeds policy limits because of a physical injury to the animal. In the second example, the claim exceeds policy limits because of a conflicting claim, such as the negligence of the driver. Because these instances involve disputes between the insurer and the liable party, it is very important to consult with a qualified automobile accident attorney who has experience representing individuals who have suffered injuries in automobile accidents that are deemed to be eligible for compensation under the responsible party’s insurance policy. (There are states that have no-fault laws.)
There are Florida lawyers who specialize in personal injury claims who can evaluate your claim and advise you on whether you qualify. (In some cases, it is not always clear whether or not you are an eligible candidate simply because your injury was caused by another person’s negligence or wrongdoing.) In all Florida cases, the insurance coverage is limited to the amount of coverage stated in the Florida statute. So, if your lawyer determines that your injury exceeds the Florida statute’s liability limit, he or she will ask you to obtain additional medical treatment that, in turn, costs the insurance provider more than the limits of the liability insurer provide. Once the costs are added up, the settlement may still not exceed the Florida law’s limits.
Some people get very angry at their insurance agents when they discover that their Florida accident claim exceeds policy limits. In most cases, agents are required to inform the client about all of the covered limitations. However, you may be able to get your insurance agent to offer you a more lucrative settlement if your claim has many more wounds. For example, if your accident claim was for injuries sustained from a car that was crashed into your Florida home, your damages might include things like prescription and cosmetic surgery bills, as well as the cost of replacing whatever was damaged by the wreck.