QUESTION
What should I do if I get sued for amounts exceeding my car insurance coverage?
Asked on Feb 20th, 2013 on Automobile Accidents - California
More details to this question:
My husband got into a car accident. His fault. He crossed over to the carpool lane to avoid hitting the car in front of him and instead hit a lady's car in the carpool lane who lost control and hit another car that was on the right lane.
Her car is totally damage. The car she hit has moderate damages to front and back driver side.
I only got us 20/40/20 coverage - at the time and during my younger driving days, I thought it was acceptable because that's what my parents had gotten for me but I was wrong.
Lesson learned.
I will be looking for higher coverage after this accident is done to avoid situations like this. I know that he or we will be liable for anything that exceeds our coverage.
If we get sued for the amounts exceeding our coverage (I am hoping it's not a ridiculous amount), what should or can I do? We do not own our own home, we rent. We live pay check to pay check, have debt/bills, and have 2 young children.
3 ANSWERS
Edwin K. Niles
If I were representing the lady I would settle for the policy limit. The hassle of chasing after people who may not be able to pay is not worth the effort. So the answer is that the lady (or her insurance company) have the right to pursue you for the short-fall, but probably won't.
Answered on Feb 25th, 2013 at 8:46 PM
Monica Cecilia Castillo-Barraza
You're responsible but speak with your insurer about seeing if the whole matter can resolve within your limits and with no further liability from you.
Answered on Feb 25th, 2013 at 8:19 PM
Firstly give any lawsuit to your insurance carrier and they will defend it will go over your deductible. Secondly in CA if the damages exceeds your policy limit and your insurance does not offer to settle for the policy limit, the insurance policy becomes unlimited coverage and they will pay the full amount for any judgment. Thus when it goes over your limit your insurance company is going to offer to settle, if not immediately, for the policy limit if your husband is indeed at fault. If I was the other driver's lawyer I'd make a demand and see whether it was rejected. If they offer to settle for the limit I'd advise to take it if the other driver doesn't have any assets. Going after people without assets is a waste of time and money; one could garnish wages but most people then file for bankruptcy and it may get the amount substantially reduced or eliminated.
Answered on Feb 25th, 2013 at 8:15 PM