What to do if the damage to a vehicle exceeds the insurance limit?

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What to do if the damage to a vehicle exceeds the insurance limit?

My daughter was driving a car when she hit a farm tractor. The damage to the tractor was $93,000 but our insurance will only pay out $10,000. The $10,000

is not being accepted. What happens next?

Asked on March 29, 2018 under Accident Law, Alaska

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You and your daughter will be sued for negligence.  Damages (monetary compensation the tractor owner will be seeking in a lawsuit) would be the cost of repairs to the tractor.
Your insurance company will provide you and your daughter with an attorney at no cost to you.
If the case results in a court judgment against you which you cannot afford to pay, at that time you may want to consider filing bankruptcy.  Chapter 7 bankruptcy is straight liquidation which will eliminate the debt resulting from the court judgment.


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