Auto Insurance Claims: what if you dont pay for damage?, property damage coverage, court judgement

Question
Hi,
recently i rear-ended a lexus 2007 rx330 and the lexus hit another vehicle front of him, which is a bmw. So the damage for lexus is 17,500 and for bmw 6000.
My insurance company paid 6000 to bmw, so this has been taken care. but for lexus, my insurance could only offer 4000 since my liability for property was only 10,000. Now, the insurance company is sending a letter to pay for the remaining balance, if not they will take legal step.

NOW my question: If i dont pay (since i dont have this money), what will happen? Can you tell me all the warning and things that will happen to me next? Thank you in advance.

Answer
Hi Yohan,
If you don't pay the amount owed to the insurance company of the Lexus, or at least enter into an agreement to make monthly payments to them until they are paid, they will get a court judgement for the amount owed and use every possible legal means to collect.
If you live in a mandatory insurance state, they will file  a report with DMV showing that they have an unsatisfied judgement against you.  This would probably result in your drivers license being suspended.
The best thing to do is enter into an agreement to make monthly payments to the other company, even if you can only pay $25 per month.  If you enter into a payment agreement, it is extremely important that you never default in your payments.  That would result in them having the state suspend your license.
Immediately contact your insurance and increase the amount of Property Damage Coverage on your policy in the event there is a future accident.
I hope this has been helpful.  Please write again if I can be of more assistance.
Sincerely,
Bennie
San Francisco Bay Area 10-19-07 1:22 PM PST