Auto Insurance Claims: Possibly being sued outside of policy limits - auto accident, uninsured motorist coverage, real assets

Question
Was involved in a car accident several years ago. I rear ended someone at a stop light - probably doing about 20-25 mph. Damage to both cars but both drivable - person I hit did not indicate any injuries.

I have minimum liability in Maryland ( I know I know should have known better) of 25K. My insurance company recently offered policy limits and indicated that her lawyer would be talking to her insurance about collecting under UIM.

Just last night I recieved the summons and the amount being asked for is 600K. I am pretty feaked out as I have a family and don't know what I would do. Any idea of what to expect.

Although me and my wife make decent money we don't have any real assets outside of IRA, 401K, house(underwater), and cars. What are the chances that she gets enough from mine and her insurance to satisfy her without taking me to court for more?

Eric

Answer
Hi Eric,

Unfortunately, even if she gets enough from her uninsured motorist coverage, her insurance company can then come back to you for reimbursement. They will be acting as additional insurance for you but may be entitled to reimbursement. 600K seems very severe for a 25 mile an hour rear end collision. Most of this is likely fluff. This means her attorney is suing for a big number in order to scare the insurance companies into settling for a reasonable number. You should call your claims adjuster at your insurance company and ask them if they have had the womans medical file independently reviewed and what is their feeling on the reality of these alleged injuries and the treatment they incured. If they feel the injuries are legitimate, you may want to consult with an attorney that you may need to hire to represent you in this matter.

You should immediately call your insurance agent and raise your liability limits if you have not already done so.

I hope this helps
Richard Hixenbaugh