What Happens if Someone Sues You for More Than Your Insurance Covers

Being sued can be frightening, especially if there are significant financial risks involved. Insurance is frequently considered as a safety net. It provides defense against unanticipated liabilities resulting from personal injuries, property damage, or auto accidents. For peace of mind, the majority of people believe that their insurance policy will pay for any claims made against them.

However, situations arise where the damages claimed exceed the coverage limit of your insurance. This raises a worst-case scenario - being sued for more than your insurance covers. Well, nobody wants to go through that situation, but unfortunately, it does happen. In 2020 alone, nearly 4.5 million civil cases were filed in U.S. courts, many involving personal injury claims and liability disputes.

If you find yourself in this challenging situation, it is important to understand your options. For this, you must seek assistance from a personal injury lawyer in Sacramento. They can guide you through the legal system and protect your rights. They can also help you with the best course of action based on the circumstances of your case.

So, read the blog till the end to see what you can do if you are being sued for more than your insurance covers!

Secure Your Future with Trusted Legal Guidance – Call Today!

What If You Are Sued For More Than Your Insurance Policy Covers?

Coming straight to the point - if you are sued for more than your insurance covers, you’re personally liable for the excess amount beyond coverage.

Well, if someone sued you for more than your insurance covers, it’s quite known that your insurer would only cover up to the policy limits. Let’s say - you have a $50,000 insurance limit, but you’re sued for $100,000. Your insurance company will only pay up to $50,000. Hence, you’ll be responsible for the remaining $50,000.

“But what are my options?” This might be the first question that arises after knowing that you are personally liable to pay the excess amount.

To answer this -

If you are sued for more than your insurance policy covers, you still have options to protect your assets and financial stability -

• You may be able to negotiate with the litigant to settle the case for an amount within your policy limits.
• If negotiations fail, you could be responsible for the difference, which may require dipping into personal savings or assets.
• You can go to the court to appeal the decision and potentially reduce the payout.
• You can also purchase umbrella insurance to extend your coverage for future lawsuits.
• As a last resort, if you cannot afford the excess, bankruptcy could protect some assets while wiping out unsecured debts.

How Can Personal Injury Lawyer Sacramento Help You With The Situation?

It is quite understandable that accidents bring tragedy - and financial tragedy, especially a situation where you have to pay more than you have - it is a disaster! Hence, a personal injury lawyer can help - if you are facing a lawsuit that exceeds your insurance coverage.

Here’s how -

• Case Evaluation

  An accident lawyer will never jump to a conclusion without going through the case. They will review the details of your case to identify any weaknesses in the user’s claim and assess the extent of your liability.

• Settlement Negotiation

  An accident lawyer can negotiate with the opposite party and insurance companies. They request the user to settle for an amount within your policy limits. Thus saving you from any additional expenses.

• Legal Representation

  If the case goes to court, a lawyer will represent you. This potentially reduces the claim amount for you, and sometimes, the claim is also dismissed - depending on the extent of damage to the litigant’s property or life.

An auto accident lawyer in Sacramento provides you with expert legal advice. Also, they guide you through the legal challenges and preserve your financial security.

What If You Are Found To Be At Fault For The Accident?

If you are found to be at fault for the accident and, more precisely - the damage, you will have to cover for any unpaid damages.

Only physical damage is not the only damage that you need to pay for. Pain and suffering, lost income, medical costs, and other damages are all possible. The plaintiff may be able to impose a lien on your property or demand your salary if you don't pay for the damages.

It may have an effect on your long-term financial security and quality of life. It can be very expensive, so it's important to take the situation seriously and take the necessary precautions to keep yourself safe.

If you are unable to pay the damages, you may be able to file for bankruptcy in some situations. However, it is advisable to do this only as a last choice. This is because it may have long-term effects on your credit score and financial future.

Get Justice for Your Injuries – Schedule a Free Consultation Today!

Takeaway

Whenever you find yourself in this situation, it is important to contact a well-known auto accident lawyer. An experienced attorney will assess your circumstances, gather evidence, and provide sound and actionable advice on how to minimize your exposure to financial risk.

Moreover, an injury lawyer Sacramento can help you with legal representation, negotiation, and several other things. They work to ensure that you are not financially drained - as accidents can be traumatic for both parties.

Select a lawyer with experience in the specific area of law that applies to your case. It is advisable not even to move an inch without a lawyer - this might turn your case upside down, and you might have to pay the amount as demanded.

Seeking For Professional Advice From A Personal Injury Attorney In Sacramento? Contact Doyle O’Donnell!

Our personal injury lawyer, Sacramento, helps you with all your legal needs related to accidents. Our lawyers work tirelessly to ensure you receive fair compensation, and you are not falsely blamed and sued. We offer free initial consultation and do not charge a fee until we obtain the compensation you deserve and win the case.

We are known for being there for you when you need us most.

So, whether you’re looking for an auto accident lawyer or a Sacramento Boating Accident Lawyer - you can count on Doyle O’Donnell for a reliable and professional service.