Legal Question in Insurance Law in California

Re: Claim exceeds policy limits

You should first look to your own insurance company, since you should have uninsured / underinsured motorist coverage. Such coverage is designed for situations like this.

If for some reason you don't have this coverage, the other driver's insurer won't make up the shortfall. Her insurance company has no obligation to anyone once it has paid the full amount of her policy limits. If she paid for, say, $50,000 of coverage but caused $75,000 of damage, it would be unfair for the law to require the insurer to cover the full amount. She didn't pay for $75,000 of coverage so the insurer can't be required to provide it.

You need to be very careful about how you handle this. The insurance company may require you to sign a release before it gives you the money, and if you sign it you will extinguish any remaining claims you might have against the other driver.

Re: Claim exceeds policy limits

If you do not have insurance for collision and there is a liability policy limit problem, the liability carrier would need to have an agreement with all parties prior to paying for any damages. Moreover, the liability carrier would not be liable for the excess damages, save and except under certain situations where the carrier fails to timely and properly resolve claims within the policy limits.

If you had liability insurance and your husband sustained personal injuries as a result of the accident, we may be willing to assist you with the prosecution of your claims.

You may contact me so that we can discuss.