What if your liability auto insurance doesn't fully cover the damages?

Let's say your insurance could pay up to $25,000 for bodily injury, what if the amount of the bring down is higher than that? I know that you will probably have to pay packet for the rest, but is there a way that you can probably wage monthly payments or something on it instead of the full amount? Help please!
Answers:
You need a attorney and a better insurance company.
holy crap, i have a feeling sorry for if your insurance won't pay the full price. i would consult an attorney for advice if i be you. best of luck hun.
If the value of the injury claim exceeds the limits, and if your insurance company is sucessful surrounded by securing a signed release from the injured party for that amount, it's over. No one can sue you. The injured party does not own to accept the limits of the policy though, and any assets you enjoy can be taken from you if it goes to court and an excess jugement is awarded. It's up to the injured party on how they want to adopt payment, whether it be monthly installments or seizure of your assets.
Don't verbs, you will pay monthly amounts, and you won't have to arrange for it. They will place a garnishee, and if the amount is illustrious enough, it is possible you never pay it past its sell-by date so long as you live. I do know of one person who lost a $3,000,000 liability suit, and will never be out of debt unless she wins a lottery larger than that. That one is uncommon, of course, but I do not drive with smaller amount than $1,000,000 liability, ever. Minimum liability coverage is crap coverage. Heck, I remember as a teenager in the rash 60s that Dad had $50,000 liability coverage, and that was when ancestors making $50 a week were doing pretty good.

Here's the kicker. If you rationale losses a lot greater than your insurance, and you opted for the showing legal minimum, you will likely lose a lawsuit for anything they sue you for. The judge will probably take into portrayal the fact you could have purchased all right coverage, and just couldn't be bothered, and sock it to you. If you opt for, say $500,000, and are sued for $700,000, and lose, here is an excellent chance they will settle for, or be awarded the $500,000
If it's not too late already, you should up your liability coverage and get an "umbrella" policy for at tiniest $1 million. A personal injury or death lawsuit these days could cancel out all your assets and destroy your financial adjectives.
Bummer. You write the check for the difference. Likely, your wages will be garnished, so you would end up paying every time you procure a paycheck. Source(s): agent, 21+ years
First off your insurance company has a duty to TRY to settle adjectives claims at or below your policy limits. So you should stay in touch beside them at all times.

Secondly in the majority of cases approaching this the person with not adequate coverage does not end up paying anything. However let me throw out the following anyway.

If the injury is contained by fact worth more than your policy limits nearby are a lot of different factors that come into play.
- Do you own substantial assets save for a home?
- Does the Injured Party (IP) have Underinsured Motorist Coverage?
- Will the IP's insurance company "substitute their draft" (ask your company what that means. It would hold pages for me to explain it here).
-Does the IP's insurance company have the right to collect stern any med bills they paid?

If your company can not settle the claim within the policy borders you can try to work out a monthly payment plan with the IP's company or you can brand them sue you for it if you think you can win in court.

As soon as the convenience of the IP's claim is thought to worth close to or over your limits your company will send you a communiqu¨¦ a letting you know that. At that time you might want to consult with a lawyer.

FYI of the 22 states that I handle claims in I have never see a judge or jury hammer anybody for buying the minimum limitations. If you buy the minimum limit policy you are following the law. Granted it might be a low amount but you are following the ruling and it is highly unlikely that you will get penalize for following the law. Source(s): Claim adjuster for way too long.


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