Getting sued by insurance company

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Getting sued by insurance company

Hi my name is Paul M and I would like to know
if I am getting sued by an insurance company
for the rest of the damages that my insurance
could not cover am I entitled to pay the rest
off? Is there any other way to avoid paying
this large amount of roughly 16,000. I want
to know do I have to pay this or not? Cuz
they agreed on monthly payments but nothing
else.

Asked on March 21, 2017 under Accident Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If your insurer paid up to the limits of the policy, then the other insurer could sue you for any amounts they had to pay out but which were not covered (assuming that you were at fault in causing the damage; only an at-fault party is liable to pay damages)--the limits of your policy limit only the coverage you receive, not another party's ability to seek reimbursement for damage, costs, etc. you caused. 
On the other hand, if your insurer and the other insurer negotiated a settlement in which your insurer agreed to pay $X in full satisfaction of all claims, when $X was less than their policy limits (i.e. when they could have been required to pay more, so the other insurer was voluntarily accepting less than they might have been able to seek), then that settlement may very well protect you--once all claims are settled or fully satisfied, the other party cannot seek more money. You need to check the terms of the settlement agreement (if any) to see what protection it may afford you; your insurer should provide this to you.


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