Can I still be sued or held responsible for the remaining balance on a claim ifan insurer agrees toa settlement?

I was recently in a car accident which was my fault. Now I am receiving letters from the other driver’s insurance company saying that my insurance company has offered them a settlement and they are asking me for the rest of the damages. The letter says that they will sue me if I don’t pay the balance that is not covered in the settlement. Can I still be sued or held responsible for the remaining balance if they agree to the settlement?

Asked on September 9, 2011 under Accident Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It is very possible that your insurance carrier coul offer the full limits of your insurance policy but still not resolve all claims against you resulting from the automobile accident that you were in. Given the possible conflict if your insurance carrier offers to settle for your full policy of insurance where the action against you is not resolved completely, you should ask your attorney and claims representative to appoint you independent counsel concerning this lawsuit given this apparent conflict.

If the plaintiff has an underinsured policy (coverage if the party causing damages does not have enough insurance for the injury) potentially his or her policy could pick up the amount that is wanted from you to make up the difference between the demand and the amount of your insurance policy.


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