What to do if I rear-ended somebody on the freeway but my insurer informed me the settlement with the other party may exceed my coverage limit?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if I rear-ended somebody on the freeway but my insurer informed me the settlement with the other party may exceed my coverage limit?
What happens if my insurance company cannot reach a settlement within my coverage limit? I am a student and the only money I have right now is from student loans and the GI Bill. Is it possible for them to go after that money? I also have my name on my dads bank account because I manage his money. Is it possible for them to go after that money even though none of it is mine?
Asked on February 13, 2013 under Accident Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
1) Your coverage limit does not limit what you can be sued for; if you caused injuries or property damage exceeding your coverage limit, the other party may sue you for more than you coverage. In that case, if they win, your insurer would pay up to the limit, and you would be responsible for any amounts over that. Any money that goes into your bank account, regardless of the source or the purpose for the money (e.g. to pay for school) is fair game.
2) If you name is on an account, the assumption is that at least some of the money is yours. The other party may well try to go after it, and you would then have the burden of proving that it is not your money-which may be difficult if you have control over the account (control creates a presumption that the money is yours).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.