*Update: Post 2020 the law changes discussed below were changed again. With a HIPAA request, insurance companies are now required to disclose policy limits. However, these requests have to be made to the other driver, who authorizes the information’s release. This is effectively better for plaintiffs but still leaves issues that didn’t exist prior to the 2015 change.*
Have you ever wondered how to find out the insurance policy limits of a driver who crashed into you? It’s a precious piece of information, especially when you’re trying to negotiate a fair settlement.
There are several ways to get a hold of this information. Sadly, it is increasingly difficult to obtain this information without the assistance of legal counsel.
The Importance of Policy Limits
First, what are policy limits?
In a car crash, policy limits refer to the maximum amount the insurance company of the person at fault can pay. Knowing these limits helps you understand how much compensation you might receive for your damages and injuries. A driver with little (or no) insurance could be held liable for a crash but their limited policy wouldn’t cover medical bills, car repairs, or anything else.
State simply, pursuing cases against a driver of this sort would be unproductive.
Previously, in Nevada, it was straightforward to obtain these policy limits. A law required insurance companies to disclose this information if certain documents, like medical records, were provided. However, this law was repealed in 2015. Now, there’s no legal requirement for insurance companies to share policy limits before a lawsuit is filed.
This change makes negotiations more challenging.
Dealing with Insurance Adjusters
Since the repeal of this law, interactions with insurance adjusters have varied. Some may share the information, albeit reluctantly. Others might incorrectly claim it’s illegal to disclose these limits due to the change in law.
This isn’t entirely true. It may go against their company’s policy, but it’s not against the law. The law doesn’t require the insurance company to provide that information, but it doesn’t restrict them or penalize them for doing so.
Why Disclosure Matters
Disclosing policy limits is critical for negotiating in good faith. To effectively negotiate, both parties need to be aware of the available funds and the size of the claim. With insurance companies refusing to disclose (whatever the reason) it leaves personal injury attorneys in the dark. This creates a potentially unfair imbalance in how negotiations are conducted pre-litigation.
Once a lawsuit is filed, the defendant must legally disclose all insurance policy information, including the limits. This requirement underscores the importance of this information in facilitating fair negotiations. Insurance companies refusing to disclose after a claim is filed is bad faith on their part.
Strategies for Obtaining Policy Limits
So, how can you find out these policy limits in today’s legal landscape? Here are some approaches:
Direct Asking: Sometimes, simply asking the insurance company can yield results. While they are not required to volunteer this information pre-litigation, they may well do so.
Third-Party Sources: Occasionally, other sources might have information about the policy limits. The other driver or publicly available records are sources that can be checked.
Threatening a Lawsuit: Informing the insurance company that you’ll file a lawsuit if they don’t disclose the limits can sometimes work. Courts have recognized that refusal to disclose can hinder good faith negotiations and might constitute bad faith. Because of the consequences of a bad faith claim, companies are likely to offer information rather than face those costs in time and money.
Filing a Lawsuit: If other methods fail, filing a lawsuit might be the only option. In court, the disclosure of policy limits is a requirement. Sadly, filing a lawsuit effectively often requires an attorney.
Get Legal Representation
Since the repeal of the law that made it easier to obtain policy limits, the need for legal representation has become more pronounced. An attorney at Clear Counsel Law Group can work towards obtaining the necessary information for a fair settlement. If you have more questions or need assistance in the wake of a car crash, don’t hesitate to reach out for professional legal advice.