Every automobile insurance policy includes mention of the policy’s limits. The limit is the maximum amount of money allowed in a designated pay-out.
A car owner has the ability to purchase liability insurance.
Car owners that have paid for liability insurance enjoy coverage, in the event that someone would file a claim against them. Still, such coverage comes with a limit. That is the maximum amount of money available, when the insurer has agreed to cover the damages for a particular incident.
The link between a policy’s limits and the claimant’s demand letter
In that letter, the claimant states the amount of money that he or she would like to receive in the form of compensation. If the amount of money demanded by the claimant exceeds the amount quoted as the limit for the policyholder’s coverage, then the adjuster does not respond to that particular demand.
Possible source of additional funds
If the person that is responsible for a given accident is underinsured, in other words has a policy that does not cover all of the damages, then the affected policyholder might have to make use of optional coverage. That would mean making a claim under underinsured motorist coverage, if the policyholder has purchased such coverage.
Understand that the mere possession of such an option does not automatically guarantee the availability of the desired funds, as per injury lawyer in Hamilton. Policyholders that hope to make use of such an option have to make a claim within 30 days, from the date of the collision.
Suppose that the responsible driver refuses to share his/her insurance information, and leaves the scene of the collision before the police arrive?
In that case, the motorist that has been hit needs to study the license plate on the other driver’s vehicle, and record the number on that same plate. Later, that information should be shared with the police. In that way, an accident victim that has been deprived of information on the other driver’s insurance can pursue an effort that is directed at obtaining that same information. The police are normally willing to assist an accident victim that has been unable to obtain all of the details, regarding the other driver’s insurance coverage.
If the police arrive soon after the collision’s occurrence, then the law enforcement officers should ask both drivers for proof of insurance. If a pedestrian were to get hit, and then watch the responsible motorist drive away, then that same pedestrian should make an effort to note the vehicle’s license number.
Pedestrians that are unable to read the license number should at least note the vehicle’s color and model, if possible. Later, those same pedestrians must work with the police, while trying to locate the unidentified driver.