I am from New Jersey. I have recieved a letter from my Auto Insurance company that There is a claim against my policy for personal injury. The claim is for more than my policy limits. I do not have any additional insurance coverage than this policy.
1. Do I need to appoint an attorney in this case.
MY RESPONSE : No, not at this point. Only a claim is being made. But, if the claim is not settled, your own insurance company will supply you with an attorney to defend you. That one of the reasons why you're paying insurance premiums - - defense counsel is included in the price. No extra money is needed.
2. If the claim is for more than the policy limit. Do I have to pay for the rest of the amount.
MY RESPONSE : Theoretically, you could be held liable for an amount over your policy limits IF the case goes to judgment after a court trial. However, and depending upon the damages involved, the vast majority of auto accident cases are settled within policy limits.
3. Can I be sued if the insurance company rejects this claim.
MY RESPONSE : Yes, but like I said above, once you receive a Summons and Complaint, you should immediately make a copy for your own records, and turn the originals over to your insurance company. They will then, with your ongoing cooperation in the defense of your case, assign an attorney to defend you against the claims being made in the Complaint. Always cooperate fully with your insurance company and the attorney that may be assigned to you later on down the line if the claim is not settled.
Kem Cho
