Bodily Injury Coverage Concerns
I was deemed at fault in an auto accident and have a few questions regarding my situation.
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I have $50K in bodily injury coverage, and the other party has submitted a claim to my insurance, seeking the maximum amount as a “full and final settlement.” If we both agree to this settlement, does it mean that I cannot be sued by the other party afterward?
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The other party’s medical expenses currently total around $36K, and they have plans for an additional procedure costing approximately $74K. My coverage is insufficient to cover their total expenses. If they pursue the full policy amount, where would they find the funds for the remaining costs? I’m concerned about the possibility of being sued for the balance. I’ve heard that once my bodily injury coverage is exhausted, the other party may be able to claim the rest through their own uninsured motorist coverage. Is this accurate? I’m anxious about the prospect of legal action and having to pay out-of-pocket for any remaining costs.
Any advice would be greatly appreciated.
Thank you!
It sounds like you’re in a challenging situation, and it’s important to understand your options and potential outcomes. Here are some points to consider:
Full and Final Settlement: If both parties agree to a full and final settlement, it typically means that once the settlement is paid, the other party cannot pursue further claims against you for the same incident. However, this should be clearly documented in a written agreement. It’s crucial to ensure that the settlement includes a release of liability; otherwise, you could still be at risk of a lawsuit. Consulting with your insurance company and possibly an attorney would be wise to ensure your interests are protected.
Coverage Limits and Further Medical Expenses: Since your bodily injury coverage is limited to $50K, the other party can only collect that amount from your insurance. After that, if they have additional medical expenses (like the projected $74K), they have a few options:
If the other party has uninsured/underinsured motorist (UM/UIM) coverage, they might be able to claim the difference from their own policy. This depends on the specifics of their coverage and the laws in your state.
Risk of Being Sued: There is a possibility of being sued for the difference if the other party’s expenses exceed your coverage limits. To mitigate this risk, it’s important to communicate with your insurance provider as they may have procedures in place to handle these situations. Additionally, you might want to consult a legal professional for personalized advice tailored to your situation.
Future Insurance Considerations: Moving forward, you might want to consider increasing your bodily injury coverage limits if possible. This can help protect you from similar situations in the future.
Overall, engaging with your insurance company and possibly seeking legal advice is the best course of action. It will help you understand your options and prepare for any potential outcomes.