Expert: Richard Hixenbaugh - 9/10/2010

Question
The other driver sustained a permanent impairment of 8% of the whole person according to his doctor. The medical bill was $17,000. They are asking for $25,000 (my policy limit). My insurance co is offering only $2,500. If they are unable to resolve the claim, they can sue me! I know they will provide me with an attorney. But will I be responsible to pay, even though what they are asking for is within my policy? Thanks.  

Answer
Hi Shay,

If you are sued, your insurance comapny will provide you with a defense attorney.

This case should settle within your policy limits. If you are sued and the other party receives a judgement that is more than your policy limit then you would be able to sue your insurance company for the balance. This is due to the fact that they were offered an opportunity to settle within the policy limits.

This si a typical part of the process. Your insurance comapny will try to settle for less. They will go back and forth for several months with the other sides attorney. In the end, the case will likely settle within your policy limit with any law suit being filed.

I hope this helps
Richard Hixenbaugh