What happens if I don’t respond to the other party’s lawyer’s letter, will they accept the Insurance agent’s terms or they can sue me?

I am at fault for the accident. There are medical expenses and property damages. I have insurance but they are trying to get the money from me. It is around $11,000.

Asked on May 24, 2017 under Accident Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

They can sue you no matter what: nothing forces them to settle ahead of time with your insurer (though it's frankly stupid to not settle if you can) and they can insist on going to court. If you are sued, your insurer should defend and/or pay on your behalf, up to your policy limits. If the amount they are suing for is greater than your policy limits (assuming your insurance applies in this case)--in that case, they can sue for the surplus. Example: you have $10,000 coverage and they end up seeking, say $20,000; your insurer might discharge its obligations to you by offering them $10k (the most the insurer is responsible for, since that's the amount of insurance you bought) and they can sue for the other $10k.

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