How is liability insurance overage paid for?
April 26, 2005 5:27 PM Subscribe
I was in a car accident about four years ago where I rear-ended another vehicle. AFAIK, it was my fault, but no one seemed injured at the time, and now I'm being sued for thousands more than my liability auto insurance will cover. If they are awarded what they're asking through arbitration or through a judgement, what are my options for paying the portion which my insurance won't cover? Background and other related questions inside.
posted by xiojason to work & money (12 answers total)
I only have liability insurance. $25,000 per person, $50,000 per incident, I believe. The folks I hit, while not obviously injured at the time, are wanting quite a bit more than that for medical treatment and pain and sufferring, loss of sexual pleasure, etc, etc.
The suit kind of snuck up on me. In fact, it was two months from expiring due to the statute of limitations when my insurance company called to let me know that they'd been unable to make any recent contact with the lawyer representing them, and that I should expect a process server to show up and serve me so as to halt the event from expiring. That happened just a few weeks later.
I've only talked briefly with my insurance company's lawyer and I'm giving my deposition tomorrow. There's an arbitration hearing set for next month. If that doesn't resolve anything, there's a court date scheduled for next year. If they don't settle for under $50K, I presume I'm on the hook for the rest. In that case, what are my options for paying that off? Anyone go through something like this and have some advice or at least a story to let me know what to expect? Thanks.