I was in an accident last year. I was at fault. My insurance had PD $25,000. Now my insurance calls me and says that they have sent a demand and the amount was exceeded. And they will send it in the mail. I am stressed out on what to do. As I already have credit card debts and loans and I cannot afford anything. My insurance has gone up already which is very expensive. Can anyone let me know what can I do in this situation.
At Fault Car Accident Exceeded PD
byu/Quick_Sort8849 inInsurance
Posted by Quick_Sort8849
4 Comments
Pay what you owe and buy more insurance going forward. Unfortunately you learned that saving that $30 on a lower pd limit is going to cost you significantly more.
I’m not actually trying to sound harsh but insurance can only pay what you paid them to pay. And you chose a level that’s wildly inadequate to pay for pretty much any newish vehicle on the road.
Are you sure YOUR insurance is sending the demand to YOU? Or is it the claimant’s insurance sending the demand to your insurance and also to you? What is the damage amount over your limits? Are they actually sending a “release” letter?
Your insurance has to let you know the other insurance company sent them a demand that exceeds your policy limit, but they will try to settle for the policy limit with the other carrier
Not much to be done accident already happened. You may not be able to drive soon, too expensive and or not have a car. If you already also have a bunch of credit card debt you are not paying off on top of whatever this claim ends up being over your 25k, you might be able to debt consolidate, have a payment plan. Depending where you are maybe bankruptcy which really sucks for many years is the better option. Your going to have to see what the damages being alleged over your insurance. Please please buy more insurance 25k is way too little.