Legal Question in Insurance Law in California

Policy limits

Someone hit my son and 4 other cars on the freeway. The at fault party's insurance paid for the car repairs ($6K.)Our insurance covered most of the car rental, but there is still an outstanding bill of $600.00 because it went over the time limit. The at fauly party's insurance has reached the policy limit. Our insurance says it is not their responsibility to reimburse us as for the remainder. So, are we ''stuck'' with the remainder of the car rental bill? What would be the next step? Thank you!


Asked on 6/16/03, 11:14 pm

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Policy limits

Assuming that you did not sign a release following the payment, in order to recover your rental costs, you may bring a small claims action against the driver responsible (and perhaps the owner of the car, if different, for negligent entrustment of the car). Good luck!

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Answered on 6/19/03, 2:49 pm
Steven Murray Steven W. Murray, APC

Re: Policy limits

Your company owes the money if your own limit has not been reached.

The only way to know if the defendant's policy is exhausted is to get a copy and see proof of what amounts it paid. PD limits are generally much lower than BI limits so it is possible the limits got used up - but maybe not.

If you did not settle the case and release the defendant, he/she is personally responsible. If the owner is different than the driver, both are responsible (in general).

And make sure you get the repayment BEFORE your own insurer tries/gets any of its own money back -your rights are superior to the insurer's.

You can email me if you have any questions.

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Answered on 6/19/03, 3:10 pm


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