[xtreme27]

I am being sued in an auto accident case and I got a letter saying that my libility insurancer will not cover the full amount how much can I be held for, I though you have insurnce so that this can't happen

[twinkiedooter]

Your policy has limits for the liability. You should carry ample liability to cover such situations. Would suggest you carry more liability than just the legal minimum required.

[excon]

Hello x:

I agree, that is the IDEA behind insurance. They're always there to collect your premiums, but they seem to be absent when you file a claim...

That said, either your insurer is cheating you, or you don't have enough coverage, or you didn't read what coverage you bought. In order to help you, we'd need to know exactly what your insurer said, and why they denied coverage.

Of course, you will be held liable for EVERYTHING beyond what your insurer will pay.

excon

[ScottGem]

There is a commercial running now (I think its Allstate) where a judge finds for the plaintiff for $100K. The defendant's attorney turns to the plaintiff's attorney and says that their insurance will not cover the whole award. The Plaintiff's attorney then talks about other assets, college savings, house etc. The defendant's parents ask their attorney whether he can do that and their attorney says yes.

You are insured only to the limits of the policy. If the award is greater than those limits you have to come up with the difference.

If you have underinsured yourself, then you are stuck.

[JudyKayTee]

There is a commerical running now (I think its Allstate) where a judge finds for the plaintiff for $100K. The defendant's attorney turns to the plaintiff's attorney and says that their insurance will not cover the whole award. The Plaintiff's attorney then talks about other assets, college savings, house etc. The defendant's parents ask their attorney whether he can do that and their attorney says yes.

You are insured only to the limits of the policy. If the award is greater than those limits you have to come up with the difference.

If you have underinsured yourself, then you are stuck.

Absolutely - but, depending on the State, the type of injury, the level of fault, other drivers in the same household with vehicles insured with other companies COULD be brought in.

And, yes, as others have said - this is the danger of being underinsured (or uninsured, for that matter) and a very good reason to carry high insurance and possibly an umbrella.

Did they decline because the claim is over the policy OR for some other reason - stolen car, underage or suspended driver, alcohol related accident?

[ScottGem]

Did they decline because the claim is over the policy OR for some other reason

I don't read it as the insurance company declined. I read it as the suit is for more than the liability coverage and the carrier is warning their policyholder that they can only cover to the limits of the OP's coverage.

[JudyKayTee]

I don't read it as the insurance company declined. I read it as the suit is for more than the liability coverage and the carrier is warning their policyholder that they can only cover to the limits of the OP's coverage.

Very well could be one of the form letters - OP should consult with an Attorney, take a close look at the circumstances, look into excess coverage, see how reasonable Attorney feels demands of other party are.

In NYS I see more and more cases where the demand is far more reasonable than it's been in the past. Simple process to find out the insurance limits and sue within them rather than sue for some vast sum which is never going to be awarded - depending, of course, on the circumstances.