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If the insurer refuses a reasonable settlement offer within policy limits, it is playing a risky game. If, ultimately, ?the judgment exceeds the policy limits,? the insurance company is liable ?for the entire judgment,? including the amount in excess of policy limits.
Seek Legal Counsel After Your Car Accident Never ignore a personal injury claim or lawsuit that is filed against you. California courts could issue a default judgment against you if you do not respond within a certain period of time.
3 Common Amounts You Can Sue for a Car Accident in California Severity of AccidentPossible Amount to Sue forLowApproximately: $5,000 ? $25,000ModerateApproximately: $25,000 ? $100,000HighApproximately: $100,000 ? $1,000,000+
Adequate liability insurance, including an umbrella policy, is the best asset protection against car accident liability. In most cases, the injured party's attorney will settle their claim for an amount within the limits of the defendant's insurance.
You don't necessarily have as much to worry about as you think if a plaintiff (injured party) sues you directly for a car accident. Your liability insurance company is obligated to help defend you against the lawsuit and even provide you with a lawyer.
Some states classify as no-fault states, such as Florida. In these states, all drivers must carry a personal injury protection policy. In a no-fault insurance state, if you travel as a passenger of a vehicle involved in an accident, you may file a claim under the policy of the person who transported you.
California is a fault state, which means that drivers who are found to be at fault for a car accident may be held liable for any damages or injuries that result from the accident. This includes property damage, medical expenses, lost wages, and other costs associated with the accident.
In general, you cannot sue after accepting a car accident settlement in California, but there are some exceptions.