Sued in excess of policy limit?

[12006eastern]

What is the name of your state? I live in PA. My wife and I recently received notice that we are being sued in excess of the policy limit! We will contact an attorney to advise. I have many concerns. What happens next? Do we contest the amount he/she is sueing for? Do we have to sell personal property to pay in the end? It has been just short of two years since the accident. My insurance company asks if there is other coverage we may have to help with this matter - what do they mean? Homeowners policy? Any advice or help would be greatly appreciated.

12006easternWhat is the name of your state?What is the name of your state?

 

[efflandt]

Homeowner's insurance probably excludes auto liability unless you have some sort of umbrella policy that covers liabilities beyond other insurance coverage. If your liability exceeds your insurance, any other assets (except retirement accounts) are at risk. That is why, if you have any assets, it is wise to carry more than the minimum required insurance.

You can certainly contest it, but what that will cost, or whether you will reduce it, cannot be determined from the info in this post.

 

[Betty]

If you have no other ins. to take care of the excess over your policy limits & they sue for an excess amt. & win, they will have a judgment against you. If you can't/don't pay the judgment amt., they can seize non-exempt assets, garnish wages, etc. (whatever is legal in your state)

You indicate you are contacting an attorney which you need to do - they can advise you re contesting the amt. & answer any other questions you may have.

 

[moburkes]

As was stated, homeowner's insurance doesn't cover auto accidents. However, umbrella, or excess liability, insurance does. Generally, your auto policy needs to have at least $100/$300 for liability coverage, in order to purchase an excess liability policy. Had you had it, it would have cost approximately $200-$400/YEAR for up to $1 million. I know, too late now. Your insurance company will defend you up to the policy limits.