sued beyond pi limit...who pays for lawyer?

[confuzzzzled]

What is the name of your state? CA

I understand that the Insurance provides a lawyer up to the pi limit. Anything beyond that I need to get my own lawyer.


But here's my confusion (the amounts listed below are hypothetical):
If my pi limit is 200,000 and the person suing me is seeking 300,000, does that mean that the insurance company is not going to provide me with a lawyer at all, and I'm stuck with hiring my own lawyer plus paying for depositions, etc to protect the 300,000?

Doesn't the insurance company have an interest in protecting their 200,000; thus providing me with a lawyer? And then I hire an additional lawyer to protect the extra 100,000? Then the costs for depositions, etc, are divided between the insurance company and myself on a 2:1 ratio respectively? Is this correct?

Hypothetically, if the insurance company isn't going to provide me with a lawyer at all, I could not respond to the suit and have a default judgement filed against me. Then I would seek chapter 7 bankruptcy (assuming I have no assets, and earn less that state median income). The insurance company would have to pay the 200,000...I would save money by not having to hire a pi defense lawyer + depositions, etc. Sure I would have bad credit for the next 10 years, but I wouldn't be planning on purchasing any major assets.

 

[ecmst12]

No, your insurance company will still provide you with a lawyer. I honestly can't figure out what the purpose of getting your own lawyer for a lawsuit over your limits, unless you think the one provided by the insurance company is incompetent.

 

[CraigFL]

No, your insurance company will still provide you with a lawyer. I honestly can't figure out what the purpose of getting your own lawyer for a lawsuit over your limits, unless you think the one provided by the insurance company is incompetent.

It's always been my opinion that the insurance company lawyer is there to protect THEIR interests and not necessarily yours. Sometimes your interests and theirs coincide but not always...

 

[fcobarr]

I'm personally going through this right now...I'm being sued for 10x my limit.

Your insurance will provide a lawyer. Their goal will be to settle before going to trial...this will take time. I'm going over 1 year, and the attorney said it may take another year.

When all is said and done (medical treatment completed, liability established, etc.), if your lawyer offers the injured party your policy limits (assuming it's determined that's what the damages are worth), and they reject the offer and force the case to go to trial, then you will be responsible for amounts awarded above your policy limits. Your insurance will defend you through the trial.

Like ecmst said, there is no benefit for you to add your own attorney in the mix. That will just cost you money. However, you may want to get some counsel to come up with a strategy to protect any assets you may have should it go to trial and a judgement is awarded in excess of your policy limits.

What were the injuries to the other party? Are you 100% liable?

 

[VeronicaLodge]

my grandfather was sued for a car accident that was his fault a few years before he passed away, the suit finally settled about 4 years or so after he passed away. My mom was the executor of the estate and had to deal with that suit until it was resolved.