Boulder Insurance Policy LimitsLast updated on: January 25, 2021
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When a victim is injured in an unexpected accident, massive repercussions may follow.
While insurance exists as a means of protection from substantial financial loss, many policies are difficult to understand and navigate. Additionally, some jurisdictions or companies have specific limits on these insurance policies.
If your loved one has been injured in an accident and needs help understanding Boulder insurance policy limits, call Zinda Law Group at (800) 863-5312 for a free case evaluation with our car accident attorneys.
What Is a Policy Limit?
Many insurance companies use convoluted language and lingo to describe the benefits and responsibilities that accompany their policies. If you have an insurance company, you have likely heard of premiums, deductibles, and limits. However, even though many people have heard of them, many policyholders do not fully understand the terms of their policy.
An insurance policy limit is the maximum amount of money an insurer will pay toward a covered claim. In many instances, your coverage limit and premium are correlated and, thus, increase simultaneously (i.e. the higher your coverage limit, the higher your premium may be). These limits may be different depending on the type of insurance or coverage, even within a single policy. Individuals often get the opportunity to choose from a range of policy limits, depending on their personal financial standing. Regarding automobile insurance, typical policies include different limits for each type of coverage.
For all covered drivers, it is important to make sure you are meeting state requirements for minimum coverage. If you are not, you may be penalized. , the penalty for driving without proper auto insurance includes four points on your driver’s license, a minimum $500 fine, and 40 hours of community service.
Why Do Insurance Companies Have Policy Limits?
Even though the purpose of insurance is to limit the negative effects of an incident, insurance companies cannot reasonably cover every damage that could potentially occur. Insurance companies typically impose policy limits as a means of balancing the cost of maintaining the policies and the benefits of the coverage.
Insurance companies determine a client’s monthly payment by assessing their risk and their general likelihood of filing a claim. These companies turn a profit by insuring individuals who may never file a claim, thus saving the company and the client money in the long run. If the company feels that they will have to pay out a substantial amount to you or another on your behalf in the future, your premiums, limits, and deductibles will likely reflect this prediction.
Policy limits can be extremely limiting for victims of debilitating accidents. These victims may be left to pay out-of-pocket for their injuries, even though both parties were covered by insurance company policies. If you are insured in the Boulder area, it may be beneficial to contact a Boulder insurance attorney who understands the specifics of insurance policy limits and can help you assess your policy to prevent future debt.
What Are the TYPES OF INSURANCE POLICIES?
There are many kinds of insurance that target a specific aspect of a policyholder’s life that may need protection. Within these different types, many have various categories of coverage that focus on an even smaller subset of a policyholder’s needs. Depending on your jurisdiction, many of your insurance policies likely have limits. The main types of insurance policies include:
1. Health Insurance
Health insurance is designed to cover the expenses of maintaining your health and well-being. As many Americans know, doctor and hospital visits are becoming increasingly more expensive, with the U.S. healthcare spending increasing by 4.6% in the last year alone.
2. Car Insurance
In all states, driving without some form of car insurance is against the law. Even though it is illegal, many uninsured drivers still take to the streets and are involved in accidents that leave victims out to dry. Every driver should have some form of automobile coverage to protect against accident, collision, theft, and vandalism. Additionally, depending on your policy, the included coverage likely offers differing policy limits as well. For example, auto liability coverage, uninsured motorist coverage, personal injury protection, medical payments coverage, and comprehensive coverage all likely carry different policy limits, even if carried by the same insured driver. Thus, it is important that you pay attention to the specific aspects of your policy so you are prepared if you ever need to make an insurance claim.
3. Life Insurance
Although many people choose not to think about it because of its morbidity, death is expensive. Family members left to handle their deceased loved one’s estates may be burdened with crippling debt and funeral costs. Life insurance provides some sort of financial relief for estate planners.
4. Homeowner Insurance
This type of insurance allows homeowners to maintain their home and keep its property value high. Additionally, homeowner insurance helps owners protect their assets in the case of major damage or a catastrophic event.
5. Umbrella Insurance
Umbrella insurance refers to the extra coverage that a party may elect to purchase, in addition to another type of insurance policy. This type of insurance helps clients further protect themselves from the negative financial and life consequences of an accident.
6. Renter Insurance
Even if you do not own your home, you may still be able to purchase an insurance policy to protect you if something happens to your rental property. Notably, many states and landlords require that renters purchase this type of insurance to protect all parties from an accident.
7. Travel Insurance
Travel costs can prove to be expensive, especially if you are travelling with a large group or family. Travel insurance helps protect jetsetters from the financial burden of failed travel plans in the case of a personal emergency.
8. Pet Insurance
As more Americans adopt pets, pet insurance is becoming more common in American households. Vet and emergency visits may prove to be costly for pet parents. Pet insurance may be a more cost-effective option than paying a lump sum every time your furry friend needs medical attention.
Therefore, you should contact an insurance attorney to ensure that your policy is up to par and determine which policies carry determinative limits.
What Are Boulder’s Insurance Policy Limit Requirements?
Boulder has implemented a series of insurance requirements that every driver must meet before they can legally operate a motor vehicle. Every driver must adhere to local vehicle registration regulations that require vehicles to be covered by some form of automobile insurance before obtaining a Colorado registration tag. Colorado adheres to the 25/50/15 rule, which means that each driver’s policy must include at least:
Individual Bodily Injury Liability of $25,000
This requirement is the maximum amount your insurance company will pay for an individual’s injuries in a car accident, which is also referred to as the policy limit.
Total Bodily Injury Liability of $50,000
This requirement is the total your insurance company will pay for every person total injured in a car accident.
Property Damage Liability of $15,000
This is the most your insurance company will pay for property damage caused by a car accident.
Even though your insurance company may give you a choice in selecting your policy limits, Boulder law requires that you carry these minimum policy limits to help protect the public and your own financial future. It is crucial that you pay attention to the local policy limit requirements before purchasing a policy because adherence to these laws is not optional. Boulder experts also recommend that you carry high homeowner and property policy limits as well due to the area’s rough terrain and weather conditions.
Get Help from Zinda law group’s Insurance Policy Attorneys
Insurance policy limits can be difficult to understand. Cases involving insurance policy limits and negotiations may require extensive research and calculation. If you have been involved in an accident in Boulder and are struggling to apply your insurance policy limits to the specifics of your incident, you should contact a Boulder insurance policy attorney as soon as possible. An insurance attorney may be able to help you understand the insurance benefits owed to you.
At Zinda Law Group, we have the knowledge and resources necessary to help you pursue the highest compensation possible. Our attorneys provide quality consultation and advise our clients on the best way to handle their cases. The sooner you contact our office, the higher the likelihood that we will be able to assist you.
If you or a loved one has sustained damages in an accident and needs assistance with the insurance companies, call Zinda Law Group at (800) 863-5312 for a free consultation with one of our Boulder insurance policy limit attorneys. You don’t owe us anything unless we win your case. That’s our No Win, No Fee Guarantee.