Expert: Bennie719 - 10/23/2007

Question
I was the driver in a pedestrian/auto accident, where the pedestrian was crossing against the light. (No citations were issued)  I received a letter from insurance co. that the injuries sustained could be over the $25,000 that my coverage allows, and that the pedestrian could sue me for the amount over that $25,000. What should I be doing now to protect myself, and in these circumstances, is it better to find my own legal representation, other than the insurance co., who said they would defend me?

Answer
Hi Becky,
It appears that the injured party's Attorney has submitted a demand greater than $25,000.  Your insurance company is required by law to inform you that you have been sued for an amount greater than your policy limits, that they will continue to represent and protect you and that if the claim should wind up being settled in court for over $25,000 then you are personally liable for the excess and that you have the right to hire your own attorney to protect your interests if the case exceeds your policy limits.
Based upon the pedestrians injuries and other economic losses and what degree of fault they are willing to consider against you (if any), your insurance company will offer a fair settlement for this case.
Call your insurance company and request that you be allowed to meet with the Adjustor handling this file and read the summons and complaint information contained in the attorneys demand.  How much is the demand?  They should actually be willing to give you a copy.  Ask the Adjustor for this attorneys history.
Does he normally settle his cases 'out of court'?  How many times has he actually gone to trial with a case?
The majority of personal injury attorneys have never tried a personal injury case in front of a jury.  Probably no more than 1% of personal injury claims wind up before a jury.
Your insurance company is negotiating in good faith with the attorney and at some point will present him their absolute FINAL offer.  If he declines that and goes to trial, that offer no longer applies and can not be ever be mentioned in court.  A jury could very well decide on a settlement of less than your companies highest offer.
Before an attorney takes a case to court demanding an amount greater than the insurance limits, his obligation to his client is to thoroughly research you and your assets.
He charges his client a higher % of the settlement if the case goes to trial.  If you don't have assets to pay the difference (if he should win), he risks being sued by his own client for taking the case to court.
Become better informed about this entire situation.
It is illegal for you to 'hide' or 'transfer' assets now that he has filed suit.
Again, this first demand is just 'blustering' on the part of the attorney.  Once you become better informed, then you will be more able to make the decision of whether or not to hire your own attorney.  Both myself and your insurance company can discuss this matter and answer your questions, but neither of us can give you the Yes or NO on hiring a separate attorney.  That has to be your decision.
I hope the information that I have provided is helpful.  Please write again if I can be of more assistance.
Your feedback from this answer will be greatly appreciated.
Sincerely,
Bennie
San Francisco Bay Area 10-23-07 2:09 PM PST