What Happens if Someone Sues You for More Than Your Insurance Covers

What Happens if Someone Sues You for More Than Your Insurance Covers

Life can be unpredictable, and accidents are inevitable. You could be involved in an incident, such as an auto or bicycle accident, which may lead to severe injuries, financial strain, and emotional trauma. The worst-case scenario is being sued for more than your insurance covers. It’s a situation that nobody wants to be in, but unfortunately, it does happen.

If you find yourself in this precarious situation, it is essential to understand your options and seek the assistance of a personal injury lawyer in Sacramento. An experienced attorney can help you navigate the legal system and protect your rights. They can also advise you on the best course of action based on the specific circumstances of your case. Let’s dive in!

What if You Are Sued for More Than Your Insurance Policy Covers?

It’s imperative to note that if someone sued you for more than your insurance covers, your insurers would only cover up to the policy limits. For instance, if you have a $50,000 policy limit and you’re sued for $100,000, your insurance company will only pay up to $50,000. You’ll be responsible for the remaining $50,000.

In some cases, you may be able to negotiate a settlement with the plaintiff that is less than the amount they’re asking for. It can be done through mediation or direct negotiations with the plaintiff’s attorney. Your auto accident lawyer in Sacramento can help you with this process. However, if you can’t reach a settlement and the case goes to trial, you must prepare a strong defense. Engage a lawyer to review the evidence against you and devise an effective defense strategy tailored to your unique case.

What if You Are Found to Be at Fault for the Accident?

If you’re found liable, and the other party’s compensation amount surpasses your insurance limit, you’ll be accountable for paying the outstanding damages. It can include medical expenses, lost wages, pain and suffering, and other damages! If you fail to pay these damages, the plaintiff may be able to garnish your wages or place a lien on your property. It can impinge on your quality of life and long-term financial stability. Since it can be a significant financial strain, taking the case seriously and doing the needful is critical to protect yourself.

While, in some cases, it may be possible to file for bankruptcy if you can’t pay the damages, this should only be considered as a last resort, as it can have long-term consequences for your credit score and financial future.

The Importance of Seeking Legal Counsel From an Experienced Lawyer

Whenever you find yourself in this situation, contacting a reputable auto accident lawyer as soon as possible should be your first step. An experienced attorney will evaluate the circumstances surrounding the incident, gather evidence, and provide sound advice on the best approach to minimize your exposure to financial risk.

Moreover, there are many experienced attorneys to choose from, whether you’re looking for an auto accident lawyer or a Sacramento Boating Accident Lawyer. Just be sure to select an attorney with experience in the specific area of law that applies to your case.

More importantly, if you’re facing a lawsuit for more than your insurance covers, stay calm and take the necessary steps to protect yourself.