What to do if the damage to a vehicle exceeds the insurance limit?

UPDATED: Oct 1, 2022

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What to do if the damage to a vehicle exceeds the insurance limit?

My daughter was driving a car when she hit a farm tractor. The damage to the tractor was $93,000 but our insurance will only pay out $10,000. The $10,000

is not being accepted. What happens next?

Asked on March 29, 2018 under Accident Law, Alaska


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You and your daughter will be sued for negligence.  Damages (monetary compensation the tractor owner will be seeking in a lawsuit) would be the cost of repairs to the tractor.
Your insurance company will provide you and your daughter with an attorney at no cost to you.
If the case results in a court judgment against you which you cannot afford to pay, at that time you may want to consider filing bankruptcy.  Chapter 7 bankruptcy is straight liquidation which will eliminate the debt resulting from the court judgment.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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