What happens if I was in car accident, my fault, insurance and other party is billing for injuries over $500,000 but my policy may not be enough?

Typically, in such situations, the claimant?s lawyer will settle for the policy limits. It's just too easy for people in your shoes to hide assets, or declare bankruptcy, so most lawyers are not interested in chasing personal assets. However, an aggressive lawyer might ask you to make a personal contribution. Your ins. co. will defend you; let them handle it. They may send you a letter telling you of your right to have your own lawyer if the other side asks for a contribution. That will be up to you, should that occur.

Your insurance carrier will provide a lawyer at no charge and will try to settle the case for up to the insurance policy limits. I assume that the $500,000 figure is what their attorney says in the Complaint. For a variety of reasons, those figures in personal injury cases are greatly exaggerated. ?It is a very different situation if they have already incurred $500,000 in medical bills and you will need your own attorney. The insurance company might be willing to hire him and pay his charges until their policy coverage is exhausted. Speak to the insurance attorney and see what they think as to potential damages; if needed, you can transfer your assets to another person, but that has to be for a reasonable consideration or it technically a fraud [although often done].