What to do if liability coverage policy limits do not cover the damages incurred in an accident?

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What to do if liability coverage policy limits do not cover the damages incurred in an accident?

I was at fault in an accident. No one was hurt at the time of the accident. Now I

received a letter saying I owe $9431.91 due to liability coverage policy limits. Damages were $24796.62. I had full coverage and do not know why I owe this amount. The accident was not that serious.

Asked on May 20, 2018 under Insurance Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you believe the charges are excessive, you could refuse to pay and force them to sue you. In the lawsuit, in addition to proving your fault (which you acknowledge they can do), they also have to prove that all the claimed damage was the result of the accident *and* that the claimed amount is the actual and reasonable (not overinflated) cost of the damage. They can only recover the amount they can prove you caused, to the extent that cost is reasonable.
Or you could try to negotiate some settlement you are willing to pay: e.g. to settle the case for, say, $5k or $6k. They may accept to avoid the time and expense of suing.


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