A car accident claim exceeds policy coverage..?help?

Question

Hi i got into an accident a while ago and now i received a letter from Allstate insurance saying that my policy coverage might not be enough to cover the claim of the other person who got injured. in the letter it says that i might want to get my own attorney.

Is this letter something that the insurance companies send that gets settled and i dont have to sweat it, or is this serious. someone told me this is just something that they do to let me know that they are fighting in courts and its a regular sort of thing and i wont need to worry about it. but untill i know for sure im very nervous.

my coverage was 100K per person 300K per incident and there were 2 people in the opposite car and no deaths, just neck and back problems, thats all i know.

So, anybody have any experience with this? what should i do? im a college student and i dont have money for an attorney.

Answer 1

The letter you received is what is commonly referred to as an "excess" letter. It is something you must take very seriously.

What they are telling you is your policy may not cover the FULL value of the claim for all injured parties involved. They are saying they are providing you with a defense up to your policy limits, however, if the claims value is IN EXCESS of your limits, you'll need to hire your own attorney to help you protect whatever assets you may own--they will not do this for you. For example, if the full value of the claim for just 1 injured party is $300K, your policy only covers $100K--you have a $200K exposure that you can either 1) contribute to out of your own pocket or 2) hire a lawyer to try to fight the remaining $200K or get at least get legal advice to protect your assets so they aren't taken from you.

Keep in mind, your insurance policy only covers so much--they have a duty to YOU to inform you of what's going on...this is what they are doing and YES you must take it seriously. Again, they can only pay up to your limits--the other person doesn't have to accept it and YES they can sue you, but Allstate will only pay up to your limits & if you lose, you're on the hook for the rest.

Answer 2

You are going to receive a bunch of letters from your adjuster regarding this claim, and most of them are just formality, to keep you informed. Unless it was a major accident and there are major injuries, I don't think you have anything to worry about and you do have excellent bodily injury coverage. Consider these things: -the damage to both vehicles, minor, moderate, major? Either of the vehicles a total loss?
-injuries: anyone taken away in an ambulance? hospitalized? were you injured?
If the other parties are only claiming soft tissue injuries(ie sore neck, back) even if they go out and get an attorney and/or seek treatment for months, they wont be getting much, well at least not anywhere close to exceeding your policy limits, especially if the damages are minor. Many people automatically think they need attorneys to represent them no matter how minor or severe their injuries are, but they are not necessary. You do not need an attorney, your insurance company will settle the claim with the other parties. For now, don't worry about it, call your adjuster if you still have questions or to find out the status of the claim. Best thing you can do now is just be patient, injury claims can take some time to settle, just depends on the severity of the injuries. But trust me, unless they have broken bones are in the hospital, your policy limits shouldn't be an issue.

Answer 3

This is a very normal operating procedure, but it is not to be taken lightly. They may not have all the details but are putting you on notice. You should expect that Allstate will keep you notified as the case goes on if they are not able to settle the claim within your limits AND if it appears that the limits they have offered won't be accepted. You could decide at that point if you want to get your own attorney, but you know the longer you wait the more difficult it will be for someone to help you.

Most of the time these claims settle for limits and the other person goes to his/her underinsured motorist coverage and they decide whether or not to come after you. If you have nothing, they may let it go. But you should not have a false sense of security, it is best to consult with an attorney. He can tell you what he thinks you should do (file bankruptcy, offer to pay something, do nothing and see it through,,, etc.). Remember Allstate can defend you if you're sued, but that defense is limited to the coverage you carry. They are telling you what rights you have under the policy. Just check in on the claim to see where it stands and maybe if you can ask for some legal advice.

Answer 4

$300,000 is not a lot of money if there were serious injuries. My neck was broken in 3 places in a car accident. How far do you think $100,000 would go in that case? As a Canadian, I have a hard time with those limits that people think are good. I don't get behind the wheel of a car without minimum $1,000,000 liability, and we have $5,000,000 on the car with the greatest exposure. Definitely talk to a lawyer, because this could get very serious for you.

Answer 5

I used to work as a receptionist at an insurance office. When you get into an accident you usually get allot of letters in the mail similar to the one you received and they are either your insurance company letting you know the progress the have or the other insurance company trying to get you to sign something to get you to settle. First Don't Sign Anything and send it back in. Second the best thing you can do is go to your Insurance Agents Office personally with all of the documentation that you have and speak to your agent or a representative. They are the ones who can really inform you on where your case lies. Don't worry Its going to be fine. :)

Answer 6

You have very good coverage and it seems like their injuries arent that extensive. Lawyers put together all these ridiculous charges and make ridiculous demands for settlements to the insurance company so they have to make you aware of that demand. Likely you will have absolutely no problem- the adjusters probably laughed when they saw the demand. If you only had 10k per person.. that would be another story. But this is very common when a lawyer is involved..

For now- dont sweat it. I would just check with the insurance company in a month or so and see if they were able to settle within limits (although it may take years for them to settle)

Answer 7

Wether you have the money or not, makes no difference on if you need a lawyer or not. You DO need one if this indeed goes over your coverage limits.

If you have any property under your name (paid off car, house, etc..) they CAN and WILL go after it (depending on the laws of your state) in order to recoup uncovered moneys emanating from medical expenses.. etc.

If you're a college student with no money there really isn't much they can take from you if the need arises in a lawsuit. It's legal in some states to garner your wages (if any) to pay for something like this.

The problem with neck and back problems is that the treatment can go on forever and this racks up the bills very fast and for very long.

See if you have any pro-bono attorneys available. Some take on your case for no money but that's beyond my scope of advise.

.

Answer 8

You better get you an attorney quick! Two people, no deaths, and you are calling "just" neck and back problems. Those injuries can follow and likely will follow those two people for the rest of their lives. It doesn't matter if you are a college student or not, you need to be responsible for the accident, and you need to get some legal help right away. Hopefully, your parent's lives aren't going to be altered by this, they could potentially be up for a lawsuit, yeah, think about that.....................

Answer 9

I might suggest one to visit this website where you can get rates from different companies: http://INSUREQUOTE.US/index.html?src=5YAWds13tGY73fDG1

RE :A car accident claim exceeds policy coverage..?help?
Hi i got into an accident a while ago and now i received a letter from Allstate insurance saying that my policy coverage might not be enough to cover the claim of the other person who got injured. in the letter it says that i might want to get my own attorney.

Is this letter something that the insurance companies send that gets settled and i dont have to sweat it, or is this serious. someone told me this is just something that they do to let me know that they are fighting in courts and its a regular sort of thing and i wont need to worry about it. but untill i know for sure im very nervous.

my coverage was 100K per person 300K per incident and there were 2 people in the opposite car and no deaths, just neck and back problems, thats all i know.

So, anybody have any experience with this? what should i do? im a college student and i dont have money for an attorney.
1 following 11 answers

Answer 10

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