Auto Insurance Claims: policy limit is our limit of recovery?, fault insurance, injury coverage


Question
My husband was rearended while on his motorcycle and broke his lower leg.  Prop. damage less than $5000; p.i. costs approx. $15000.  At-fault insurance co is covering all property costs and offered $25000 for p.i., saying that was policy max.  Will they pay over the max if sued or is this truly a max? Should we try unins. motor. claim on our ins. co, too?

Answer
Hi Jo,
I'm sorry to hear of your husbands injury and wish him a speedy recovery.
The at-fault insurance company has followed the law and told you their maximum amount of insurance.  There is absolutely no way a lawsuit (or anyrhing else) would cause them to pay more.  At the time they do pay the $25,000, your husband will be required to release them and their client from all future claims.
Before this point arrives, you need to investigate other possible avenues of recovery.
You can't file an uninsured motorist claim because he does have insurance.
However, if your husband carries insurance in an amount that is greater than the amount of coverage carried by the at fault driver, for example, $50,000/$100,000 Bodily Injury coverage with 50,000/100,000 uninsured/UNDERINSURED
MOTORIST, he can file an UNDERINSURED MOTORIST claim against his own company for the DIFFERENCE between the amount of coverage carried by the at fault driver and his oen limit of UM.  In this example it would be for an additional $25,000.
There is a very formal process that must be followed (assuming that he does have this coverage).  He must agree to settle with the at fault company for their policy limits and before accepting the check or signing any release, he must get written permission from his own company to open an UNDERINSURED MOTORIST claim and then he can accept the payment from the at fault company.
If your husband does not have higher limits that would enable him to file a claim against his own policy, then you need to investigate the other driver.
If he is middle age or greater, learn if he has any assetts
(other than his home) that might be attached through winning a large settlement in court.
You may have to hire a private firm to investigate his assetts.
Do NOT hire an attorney until you are 100% positive that the other driver has enough assetts to make this worthwhile.
This case would go to trial and the attorney would get 40%,
including 40% of the $25,000 insurance settlement, because if you sue, the insurance company won't pay until after the trial.  It all becomes one big case and the attorney gets 40%.
I hope this has been of help.  Please write again if I can be of more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area