Under Georgia law, victims of an accident caused by another person’s negligence can recover pain and suffering damages. In any personal injury case, a victim can recover compensation for physical pain, emotional distress, and/or reduced quality of life. However, the at-fault party’s insurance policy limit can cap how much a victim is actually able to collect.
What Are Pain and Suffering Damages?
Pain and suffering falls under general damages. General damages cover non-economic losses, including physical pain, psychological suffering, loss of enjoyment of life, and permanent scarring. Unlike medical bills, there is no fixed dollar amount, and the value can vary by severity.
Adjusters and attorneys use one of two methods to estimate the value of your suffering:
- Multiplier method: Multiplies the economic damages by a number that reflects the severity of the injury.
- Example: If your medical bills and lost wages total $10,000 and your multiplier is 3, your estimated pain and suffering value is $30,000.
- Per diem method: A specific cash value is assigned per day based on lost wages and severity of the injury. That value is multiplied by the number of days it takes the injured party to heal.
- Example: If your daily rate is $200 and it takes you 30 days to fully heal and get back on your feet, your pain and suffering compensation will total $6,000.
How Policy Limits Restrict Recovery
A policy limit is the maximum an insurance company will pay under the policy, no matter how much the actual damages total. If a victim’s damages total $300,000 but the at-fault party only carries a $50,000 policy, the insurer generally will not pay more than $50,000. This cap applies to the entire claim, including medical expenses, lost wages, and pain and suffering combined. Policy limits, not injury severity, often determine what a victim can actually collect in a personal injury case.
For example, under Georgia law, O.C.G.A. § 33-34-4, drivers are required to carry coverage of at least $25,000 per person and $50,000 per accident for bodily injury. Many drivers carry only this minimum, which can be too low to cover injuries resulting in multiple surgeries or long-term physical therapy.
What Happens When Damages Exceed the Policy Limit
When a policy limit is too low to cover the full value of a claim, there are some options depending on the accident:
- Uninsured/Underinsured Motorist Coverage. A victim’s own UM/UIM policy can fill the gap when the at-fault party’s limit is too low. This coverage is not always available, since you have to purchase it as part of your own insurance coverage.
- Umbrella Policies. Some individuals and businesses carry umbrella coverage that covers more than the standard liability policy. Most commercial vehicles and business owners have this policy.
- Personal Assets. In cases involving severe injury, an attorney may pursue the at-fault party’s personal assets to cover the claim beyond their coverage. This depends on what assets they possess.
- Multiple Liable Parties. Accidents involving more than one party at fault, such as an accident with a commercial truck, can open up separate policies as other sources of recovery.
While your pain and suffering claim may exceed the available policy limits, simply accepting the insurance company’s initial offer may leave significant coverage and compensation on the table. The team at Jones & Swanson thoroughly investigates every potential source of insurance coverage, including the additional, overlooked, or “hidden” policies to determine whether more funds may be available for your claim. With our firm making sure no detail is missed, you can pursue all available coverage rather than assuming the first policy limit is the end of the road.
Bad Faith Insurance Claims
Sometimes an insurance company attempts to settle a claim unfairly. Under O.C.G.A. § 33-4-6, insurers are held to a certain standard of acting in good faith when handling an injury claim. If an insurer knows a claim is worth more than the policy limit, they should agree to pay out the full amount up to the policy limit. Attempting to lowball the payout offer can be considered bad faith.
If the case later goes to trial, a jury may award more than the policy limit. In a bad faith situation, the insurance company can be held responsible for the full claim amount. This includes the amount over the policy limit.
For example, if you are hurt in an accident and your total injuries, including pain and suffering, total $100,000, but the at-fault party has a policy limit of $50,000 and their insurance company offers only $25,000, you can file a bad faith claim against the insurance company. If the case goes to trial and the insurance company is found to have acted in bad faith, they can be ordered to pay all $100,000 in damages.
Consider Jones & Swanson For your Pain and Suffering
At Jones & Swanson, we have over 50 years of combined legal experience handling personal injury cases with varying levels of pain and suffering. We understand how difficult handling these insurance claims can be, especially when you are injured, and would love to help you with your case. Contact us for a FREE consultation any day, any hour, to see if you have a case.
FAQs
Can I recover more than the at-fault driver’s policy limit in a car accident?
In some cases, yes. Other factors can increase your payout over the at-fault party’s policy limit:
- Your own underinsured motorist (UIM) coverage. If the other driver’s policy limit does not cover all damages, your UIM coverage can make up the difference. This is up to your policy’s limit.
- The at-fault party’s personal assets. If the responsible party has significant assets, such as real estate, savings, or investments, those assets may be pursued to cover the rest of the damages that are not covered by the insurance policy limit.
- A bad faith claim. Under Georgia law, if the at-fault driver’s insurance company knows your claim is worth more than the policy limit but refuses to settle fairly within that limit anyway, the case can go to trial and may result in a verdict higher than the policy limit. The insurer can be held responsible for paying the full amount of the damages, even over the original limit.
If the at-fault party has a low insurance policy limit, is my claim even worth pursuing?
Yes. A low policy limit does not lower the value of your claim. It only limits what their insurance will cover. Other sources, like your own underinsured motorist coverage or additional liable parties, may still be able to increase your total payout.
What happens if the at-fault party has no insurance at all?
If you carry uninsured motorist coverage under O.C.G.A. § 33-7-11, your own insurer can step in to cover the loss up to your own policy limit. If you are a victim of an accident outside of a vehicle, such as an animal bite or premises liability case, there are instances where there are hidden coverages, third-party liability, or criminal restitution.
How long do I have to file a claim involving policy limits?
Georgia’s statute of limitations for most personal injury claims is two years from the date of the accident. Personal injury cases, especially those that include pain and suffering compensation, can become more complicated to build and complete the further away it is from the incident date. The attorneys often need to compile evidence, collect witness statements, and track down security footage or other recordings. All of these tasks become more complicated the further from the accident it gets.
Jones & Swanson Is A Personal Injury Law Firm Located In Marietta and Cartersville, Georgia. If You or Someone You Know Has Faced Pain And Suffering from an Accident, Seek Immediate Medical Assistance, Then Give Us A Call At (770) 270-3241 or Contact Us On Awjlaw.com for A Free Consultation To Find Out The Next Steps You May Want To Take.
Categories: Auto Accidents, Auto Insurance, Car Accident, Commercial Accidents, FAQ, Georgia Laws, Insurance Claims, Personal Injury
