accident and insurance limits

[fcobarr]

What is the name of your state? NJ

I had an accident with serious injuries and someone in my car will be filing a claim against my policy seeking compensation.

I was told that insurances have umbrella policies that protect the policies they write and in some instances will pay out more than the limit of the policy? Has anyone else heard of insurances paying out more than the limit allowed in a policy?

Thanks.

 

[stephenk]

If you mean will they pay above the policy limits to settle a case, then the answer is no.

However, there are circumstances where a carrier is responsible for a judgment above the policy limits.

 

[fcobarr]

However, there are circumstances where a carrier is responsible for a judgment above the policy limits.[/QUOTE]

Can you give an example of when this may happen? Thanks.

 

[Betty]

What is the name of your state? NJ

I had an accident with serious injuries and someone in my car will be filing a claim against my policy seeking compensation.

I was told that insurances have umbrella policies that protect the policies they write and in some instances will pay out more than the limit of the policy? Has anyone else heard of insurances paying out more than the limit allowed in a policy?

Thanks.

The injured party/passenger will file a claim with your ins. company. If the injured party wants more than the ins. co. will pay/offer, they can sue you in court for an additional amount. Your ins. co. will appoint an attorney to defend you up to your policy limits. What coverages do you have & for how much? You said you were told ins. cos. have umbrella policies that protect policies they write. You would only have an umbrella policy if you applied for one - this is something you would have had to buy.
Sometimes an ins. co. will according to the state & policy provisions pay interest on the judgment amt. (until they pay, offer or deposit amt. in court) which might make amt. go over pol. limit. However, they won't pay interest on an amt. that exceeds the pol. limit.