Car accident insurance claim overage
Reader question:
I got into a car accident in which I was at fault and the other person got injured. They then filed a claim for twenty thousand dollars, and I only have fifteen thousand of coverage for that, which is the state requirement. Are they allowed to make me pay that five thousand dollar difference?
Greg
Great question:
Your car insurance company gets to settle a claim without asking you if it’s okay, so they can come to whatever amount agreement with the injured driver as is necessary. Most of the time, a car insurance company wants to offer a settlement amount to avoid the expenses of going to court. However, they tend to keep to what you are covered and will not go above.
If the person to whom the settlement is being offered does not agree with the offered amount, then the dispute may go to court. If the settlement is to come out of your own pocket, then you do have the right to say no and to get involved.
cheers,
Fashun Guadarrama.
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