Getting sued by insurance company
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Getting sued by insurance company
Hi my name is Paul M and I would like to know
if I am getting sued by an insurance company
for the rest of the damages that my insurance
could not cover am I entitled to pay the rest
off? Is there any other way to avoid paying
this large amount of roughly 16,000. I want
to know do I have to pay this or not? Cuz
they agreed on monthly payments but nothing
else.
Asked on March 21, 2017 under Accident Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If your insurer paid up to the limits of the policy, then the other insurer could sue you for any amounts they had to pay out but which were not covered (assuming that you were at fault in causing the damage; only an at-fault party is liable to pay damages)--the limits of your policy limit only the coverage you receive, not another party's ability to seek reimbursement for damage, costs, etc. you caused.
On the other hand, if your insurer and the other insurer negotiated a settlement in which your insurer agreed to pay $X in full satisfaction of all claims, when $X was less than their policy limits (i.e. when they could have been required to pay more, so the other insurer was voluntarily accepting less than they might have been able to seek), then that settlement may very well protect you--once all claims are settled or fully satisfied, the other party cannot seek more money. You need to check the terms of the settlement agreement (if any) to see what protection it may afford you; your insurer should provide this to you.
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.