Auto Accident Statement of claim?

Question

I was involved in an at fault auto accident. I admitted fault at scene. The injured party has submitted a statement of claim for personal injury. I forwarded it to my insurance co. The ins. co. sent a letter saying that the claim was above my coverage and I should contact a lawyer.On talking with them they said that these letters were standard and I should not contact a lawyer right away Their lawyers deal with it.The lawyers of my insurance company sent me a letter and said that it was my decision if I wanted to get a lawyer to safeguard me against claim in excess of the policy limits. I have now been sent a letter from the lawyer that there will be an examination of discovery where I will be examined by the injured party's lawyer. They have listed several points that I should be careful of while answering the questions. They also said that they will prep me up for the examination. I am worried now for the following:

1. Should I contact a lawyer

2. Where is this leading to.

Pl. adv

Answer 1

What you received in the mail was a letter advising you the plaintiff's statement of damages in the lawsuit against you may exceed your policy limits.  This IS standard procedure.  

The insurance company needs to let you know that there is a potential for excess exposure.  Some people, sue for the world.  In NY, I often see the statement of damages exceed $1,000,000 when the plaintiff sustained a minor whiplash claim.  We will send this letter out, but the claim settles for $15k-$25k.  

What are your policy limits, and do you roughly know what kind of injury this other party sustained?  

The insurance defense attorney will help you complete the discovery requests, and will also prep you for your deposition.  The insurance company and your assigned attorney will do everything in their power to resolve the claim within your policy limits.  Call the defense attorney, and find out if he/she knows roughly what the case should setttle for.  The adjuster should know this as well.  

You might want to hire your own attorney, who will work in conjuction with the defense attorney.  Often, they will ride on their coat tales, and will not charge you unless they know if the claim will exceed your policy limits.  

We send these letters out all the time, and usually the claim DOES settle within the policy limits.  It is also possible that the other party has adequate underinsured coverage should your limits not be sufficient.  

Don't suppose you have an Umbrella Policy, do you?

Answer 2

Where is has led to is a law suit.

If the injured persons lawyer is going to interview you -- that's a deposition.

The excess letter you got is standard. Your insurance company will hire an attorney to defend you. It's an attorney of their choice. Their obligation to defend ends when they pay out your policy limit.

However, you do have the right to hire an attorney of your choice (at your expense) to work with the Attn hired by the insurance company. You don't have to. You are not required to and most people don't. But the insurance company has an obligation to advise you of this right and that's what that letter does.

The vast majority of law suits settle with out going to court and  at or below policy limits. The other side will only push it if you have assets to take (usually). It's not worth it to the other side to go through the expense of a trial - get a judgment in excess of the policy limits - if you don't own a pot to pee in. They can get a judgment -- that's not the hard part - the hard part is actually collecting. If you don't have any assets - there is nothing to take to get paid.

The main thing you should do - is cooperate fully with your adjuster and the lawyer they hired to defend you.  The legal process takes a long time. This could go on for a few more years. But - stay in contact with the adjuster and your attorney. If you move, make sure they have updated info to contact you. Ask any questions you have -- no matter how dumb you think they are. Your adjuster and defense lawyer will walk you through this.

Answer 3

Usually this means the injured party is asking for more than your policy limits.  Your company will do everything it can to settle within your limits.  But, there is always a chance it will go to trial.  If I were you, I would contact an attorney.  Tell them what the adjuster told you, you want to be sure the attorney is there & ready if you need them.  If you go to trial, you wil probably need your own attorney with  you to defend above your limits, it may still settle within your limits (it may also settle less than your limits), but you never know, depends on the jury.  

Examination under oath is normal in your situation.  You will get "practice" with your company's attorneys to get ready for it.

One thing I can say is I hope you have raised your limits to as high as possible so hopefully you won't have to go through this again.