Expert: Richard Hixenbaugh - 8/12/2009

Question
daughter had an accident in my car that was insured by LMutual. she and I were also insured by Progressive on her car but my name was listed first on policy even though she was the primary driver for some reason. LM paid all claims exept the other guys auto damage of about 2000 since my limits were exhausted. Progressive refused to pay anything even though she was insured with liability. Now we are being sued by State Farm.

Answer
Hi Janet,

I'm not sure what your question is but I will do my best.

I do not understand how your property damage liability limits could have been exhausted unless there were other vehicles involved or the amount of the damage was in excess of your policy limit. If that is the case, you will be responsible for the difference. When you have minimum limits of insurance and the damage you cause exceeds those limits you must pay the difference. If you have been sued, you should contact the other sides attorney and try to make a payment arrangement. Also you need to answer the law suit in writing within the time alloted (usually 30 days). If the case goes to court you will like be ordered to pay the $2000.00 and a judgement will be ordered against you. You will then ba able to make a payment arrangement.

So this does not happen again, you should contact your insurance companies and increase the amount of liability coverage on your policy.

I hope this helps
Richard Hixenbaugh