Legal Question in Insurance Law in Virginia

exceeding liability coverage limits

I was in an auto accident several years ago where I was deemed at fault. The person's car was totalled (not mine though) and they spent the night in the hospital.

The person had a current chronic condition before the accident. My insurance company tried to settle several times, but the person went back for additinal chiropractor work after hearing the settlement amount. Now they want to sue me beyond my limit ($100K).

Am I getting extorted by the other person? will the courts reason that a person refused payouts and then racked up additoinal bills to a potentially ''pre-existing'' condition (especially hokey chiropractor bills)? What is my maximum out of pocket limit?

Finally, what can I do now to protect myself (e.g. get an umbrella policy), and should I hire my own attorney instead of one appointed by my insurance company? I'm worried that this person knows that I make more money than them and will try to take all of my assets.

Thanks for your help.


Asked on 12/18/07, 9:37 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: exceeding liability coverage limits

1. No, what you have described is not extortion, legally speaking, and is not uncommon in auto accident cases where the alleged victim has suffered an injury, allegedly resulting from the accident.(Anyone can generally sue for virtually anything in any amount which doesn't mean s/he will be successful.)

2. There is no way to predict the reasoning of a court or jury in hearing and ruling on such a matter.

3. Factoring in to the damages equation the alleged pain and suffering allegedly incurred by the alleged victim, the sky could be your "maximum out of pocket limit".

4. Yes, umbrella policies are generally advisable for someone with substantial assets to protect. Take your insurance company's attorney first and see how s/he handles matters. If you're not satisfied for whatever reason and you can afford it, then hire your own.

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Answered on 12/22/07, 10:58 am


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