Help on Liability Insurance, damages exceed the policy

[seekingpurity]

Hi I am from Massachusetts and I got into a DUI accident 4 years ago. I had crashed into someone’s car at the time. It was my first time and I got my license back and am able to drive again. I recently got a mail from my insurance telling me that the damages exceed the policy I had. I had the 100/300 policy. Does it really exceed the amount if my insurance company sent me a letter ? What are the chances that this will be settled by accepting the insurance amount ? Or will they come after me for the full amount? If they do come after me what are my options here ? Also does insurance pay the max amount and I cover the remaining ? Ex. Total pay is 350 k and insurance pays 300 k and I pay the remaining 50 k. Let me know if I am missing any information or if you need to know more.

 

[raphacam]

@seekingpurity

I recently got a mail from my insurance telling me that the damages exceed the policy I had. I had the 100/300 policy. Does it really exceed the amount if my insurance company sent me a letter ?

Your insurance isn't going to lie to you telling you that damages have exceeded your policy limits of they haven't.

The 100/300 means your policy pays for injuries up to 100k PER PERSON and up to 300k per accident. So if only one person was injured and had 350k in medical bills, your insurance would only pay 100k and you'd be responsible for the rest. If 2 people were injured your insurance would only pay a max of 100k each and you'd be responsible for the rest

That said, your insurance will make every effort to settle within policy limits, and most claims do.

 

[seekingpurity]

@raphacam So even if the medical bills are 350 k do the they really settle for 100 k ?

 

[raphacam]

@seekingpurity They might. If the other party sees you as judgement proof, they might take what they can get.

 

[seekingpurity]

@raphacam Hi , thanks for answering my questions. I am sorry for asking another, but do you know how many years it takes for something like this to go through? Should I get a lawyer just in case ?

 

[raphacam]

@seekingpurity There's no way of knowing how long it'll take. But if you get sued and they won't settle for policy limits, you definitely need a lawyer.

 

[seekingpurity]

@raphacam What type of lawyer would be best for this ? Do I get a personal injury lawyer or some insurance lawyer ?

 

[patriotpete]

@seekingpurity Talk to your adjuster. They usually won’t pay the ($100K) policy limit without a release of all claims against the policyholder. They have a duty to defend you until they pay out the policy limit. They should be working to protect you within the policy limits. If you are sued, they will hire a lawyer to defend you. Duty to defend is separate from duty to indemnify, and does not end until insurer actually pays out its full policy limits, which they generally can’t / won’t do without securing your release. If other party refuses to settle for your policy limits, and you have personal assets they can pursue, you may need to consult personal counsel at your expense. Depending on amount of your assets you may need to file bankruptcy or something to protect against a large underinsured judgment. I’d start by talking to the adjuster. In my experience 99.9% of cases settle for insurance limits. Good luck.

 

[seekingpurity]

@patriotpete Hi , thank you for the answer. I currently have 0 assets and I live with my parents. I make roughly 4000 dollars a month, would a judge try to garnish my wages ?

 

[raphacam]

@seekingpurity If it involves injuries yes, a PI lawyer.

 

[seekingpurity]

@raphacam Thank you for all the help