Car accident lawsuit as a defendant

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Car accident lawsuit as a defendant

Hello,I had a car accident at my fault back to Oct 2007. My insurance company just called me saying that the other party decided to sue me since they don’t accept the $$$ my insurance company offered.My insurance coverage limit for body injury was $25k, but they asked for $100k, do i really have to pay the rest of $75k? what will happen normally?Thank you!

Asked on May 8, 2009 under Accident Law, Maryland

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 15 years ago | Contributor

Your insurance company certainly has a duty to represent you in good faith and settle the claim within  the policy limits.  If you go to trial and the jury finds for the plaintiff in any amount over and above the policy limit you will be liable for the difference.  You should look into other insurance policies that you have such as homeowners or any or excess umbrella policy you may have that could be placed on notice of this claim so that you are not exposed.  if you own a house, the plaintiff could put a lien on it and foreclose.  The Plaintiff could also find out where you work and obtain a wage garnishment whereby you would have money coming out of your check each pay period.  I would check out whether you have other insurance available b4 you call a lawyer to reduce costs.

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 15 years ago | Contributor

If they sue you, a court will decide how much they are entitled to, and it might not be the $100,000 they want.  It might be more and it might be less.  If the verdict is for more than $25,000, you will probably be liable for the difference.

I'm assuming that your insurance company's offer was for the entire $25,000 policy limit.  If it was for less, under some circumstances, they might have to pay the whole judgment, but I doubt that would happen in a case like this, unless the $100,000 demand is totally off the wall.

$75,000 is a lot of money.  It is more than enough to make it worth talking to a personal injury lawyer in your area, right now, about what your rights and choices might be.  You can look for an attorney at our website, http://attorneypages.com


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