In St. Mary’s County, Maryland, if you have been involved in a car accident, the likely result is a settlement of the claim through the insurance companies involved. The injured victims of the accident make claims against the policy or policies of the at-fault drivers. 

Through a process of gathering relevant and admissible evidence and through negotiations, the attorneys for the injured victims make settlement demands and, most often, are able to settle the claim. This is the standard procedure followed by Maryland auto accident lawyers, including the top-rated accident and personal injury attorneys here at the Law Office of Robert Castro. Our number is (301) 870-1200, or use our contact page. We have offices in Waldorf, Maryland, and provide legal services for residents of St. Mary’s County, Calvert County, Charles County, and other communities in Southern Maryland. In this article, we offer an explanation of what it means to “demand the policy limit.”

The process of starting by filing claims with insurance companies has several advantages, including speed, lower expenses, and certainty. Settling a case through insurance claims is quicker and less expensive than filing litigation in the Maryland State Courts. Settlements via insurance claims are also more certain in the sense that, once the matter is settled, there are no appeals or lingering legal issues.

As for “demanding the policy limits,” what must be understood is that every insurance policy has an upper dollar limit on how much the insurance company will pay. This applies to any type of insurance, like a homeowners’ or health insurance policy. Thus, to “demand the policy limit” is to issue a demand — usually via a written letter — demanding that the insurance company pay over, as settlement, the full amount that the insurance company is liable for. This might be as low as $25,000 or as high as millions of dollars.

When Can the Policy Limits be Demanded?

In theory, a demand for the policy limits can be made at any time and in any case. However, as a practical matter, a demand for the policy limits is made only towards the end of the investigation and collection of evidence. Further, such a demand is only made where the damages are, in fact, close to the limit of the insurance policy. For example, if the policy limit is $100,000 and the accident was minor, causing a broken leg and minor damage to the vehicle, there would be little point in immediately making a demand for the policy limit. Unless there is something more serious than a broken leg, the medical bills will not be close to $100,000. The same is true for the damage to the vehicle. While there are many other categories of damages — such as lost wages and pain and suffering — the likelihood is that the total damages will not approach $100,000 even after a full and complete investigation. Thus, as a matter of practice, there will be no “policy demand” in such a case.

On the other hand, if the policy limit is $25,000, a policy demand might be quickly made. Even a “minor” auto accident in St. Mary’s County, Maryland, could be “worth” $25,000.

Contact Waldorf, MD Personal Injury Attorney Robert Castro Today

This article has been provided by the Law Office of Robert Castro. For more information or questions, contact our office to speak to an experienced Maryland personal injury lawyer at (301) 870-1200. We are Waldorf, MD, Personal Injury lawyers. Our address is 2670 Crain Highway, Waldorf, MD 20601.