What Happens If I Lose An Amount at Trial Greater Than My Insurance Coverage?
I caused a car wreck and the other party was hurt. I really don't know how badly she was hurt but her medical bills are $40,000. The case goes to trial in about 3 weeks. My lawyer, who was hired by my insurance company, says that the case will probably go to trial because the person who got hurt wants $125,000 to settle the case and the insurance company has only offered $80,000. I only have $100,000 of insurance for this wreck. What happens if the case goes to trial and the jury awards the lady who got hurt more than $100,000?
If the jury awards, say, $120,000 your insurance company will have to pay $100,000 and you will have the responsibility of paying the last $20,000.
When you are sued for more than your insurance policy limits you should typically seek the input of a private lawyer to help you make sure that your insurance company is treating you fairly. Your company has a duty to fairly evaluate claims against you to protect you from an excess judgment. I do not have enough information to say if your insurance company is treating you fairly in this case but I would suggest that you seek the advice of a competent lawyer as soon as possible.
