Auto Insurance Claims: Civil law suit filed by other party due to auto accident, civil law suit, scare tactic

Question
Hi Richard,
I was involved in an accident on 25th November 2005, I rear-ended a car and was deemed at fault. At that time I was insured as additional driver under my dad's policy. So after two year I received a legal notice from the attorney of the other party with whom I was involved in an accident regarding a civil law suit being filed against me and my dad. The law suit they filed was over $2.5 Million plus unspecified amount towards personal injury and other expenses. Although my policy covers only $1 million liability. At that time of accident I don't think the other person including passenger received any serious injuries, even the paramedics arrived at the scene said that its not a serious injury and left right away. Please advise me what measures should I take regarding this issue? What should I do If the case goes against me? My financial position are not good to afford that much amount if it exceeds my $1 million liability limit. Please guide me. I will be waiting for your response.

Thank you for your time.

Answer
Hi Kaleem,

The first thing you need to do is to contact your insurance company and inform them of the law suit. They will provide you with a defense attorney who will provide you with a defence upto the limit of your policy. If the claim really may be worth more than your $1 million of coverage, you may need to obtain your own attorney to defend you against the larger amount.

This is likely just a scare tactic trying to get your insurance company to make a larger offer to settle the claim.  You should stay in contact with your insurance company so that they keep you informed of any talks to try to get this settled.

I hope this helps
Richard Hixenbaugh