by ekhristosanasty » Mon Apr 04, 2011 10:02 pm
I made an accident 6 months ago ,and it was my fault. the two cars were total lose. my liability was $10000 so my insurance company paid the 10000 but the other company asked for 11900, so should I pay the rest out of my pocket and what about if I don't have the money as I am a full time student. what should I do ?
Posted: Fri Apr 29, 2011 09:25 pm Post Subject:
Your insurance company is only liable for the amount of your liability policy. If your liability limits were $10,000 and your insurance company paid this amount you are legally liable for the remaining amount of $1,900. In some states if you do not pay the remaining amount the insurance company can garnish your wages until the debt is paid.
Posted: Fri Apr 29, 2011 10:36 pm Post Subject:
If your company paid your $10,000 limit they should have obtained a release for that amount. That is, they should have only issued that payment if the other insurance company signed a release settling the claim for all time. The other insurance company then could not come after you for the difference. If they issued your policy limits without a court judgement (your know if you were in court) or without obtaining a release then you'd have an easy case against your carrier for acting in bad faith.
Have you spoken to your adjuster about this? Ask your adjuster if he/she obtained a release. If so, obtain a copy of it for review.
I'm guessing your carrier obtain a settlement (release) for your $10,000 policy limits and the case is done.
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