As the title reads, my spouse was involved in an accident where she was at fault. I believe we were under insured. I (ignorantly) went with whatever Progressive offered when getting insurance. Below is what our coverage is:
Property Damage: $20k
Bodily Injury: $25k/$50k
After doing some research I realized we were underinsured. I have since bumped coverage up to the following:
Property Damage & Bodily Injury: $100k/$300k/$100k.
She hit a BMW that has a Kelley Bluebook value of about $45k. My question is, if the BMW is deemed totaled, would I be on the hook for the $25k or would I be on the hook for whatever is leftover after the totaled vehicle is auctioned off?
Spouse involved in accident where she was at fault.
byu/jerseyru inInsurance
Posted by jerseyru
2 Comments
You can be pursued in civil court by the BMW owner for any uncompensated losses not paid by your insurance company.
Your insurer will offer $25k
Their insurer will either accept it or sue you/her if they believe they will recover the $20k difference
most of the time, they settle without suing, but that’s a significant gulf. work with your insurer to see what happens