What if auto insurance does not fully cover property damages?

What if auto insurance does not fully cover property damages?

If an insurance company is asking for extra money for the driver at fault because the property damages did not cover all fees and the at fault driver does not have a job or any income what will the consequences be? (If you are bothered by this question or do not agree, please do not answer and move on thank you!)


This happens more than people realize.You buy the required amount of minimum liability coverage required by law in the state where you live. In some states, (CA) is a good example, the minimum required is only $5,000..........So, since the coverage is not enough, they will go after you personally for the difference that your insurance paid (MAX), and can sue you for the difference.The fact you have no job or income is not the issue, but, do you have any assets????In most cases they will run a credit check on any assets you have (home equity, savings etc) and if none,,,,,,,most will accept your limits and close it out. Since if there is nothing to collect, then they move on.You were legal, you bought insurance that was required by law. But,,,,,,in the future, might want to buy more coverage. When I went from $100,000 to $250,000 in liability coverage, the cost was around an extra $20 per year. As a former auto claim adjuster seeing too many claims with not enough, got more. A good case example is a multi chain rear end accident.good luck


If the driver did not have limits high enough to cover damage done, and the damage was his fault, he owes the amount over what the insurance covered. Not having a job or assets to cover has nothing to do with the liability owed. He will have to work with the insurance company to attempt to cover the liability. Possible consequences include being sued in court, and having the costs of court and attorney fees added to the amount owed, and having the state revoke vehicle registration and the at fault parties privilege to operate a motor vehicle.


The insurance company will likely get a judgement against you. I believe that stays on your record for like 10 years. If you have or get any assets then they will seek to attach them to get their money. A judgment against you may affect your ability to get a job because generally an employer will run a background check and will see that judgment. It will most certainly affect your ability to get credit.You can call the insurance company and try to work out some payment plan. See if you can work something out with them because its not fun to have a judgment against you.Source(s):former claims adjustor


This is what can happen when you don't purchase adequate insurance coverage. Insurance pays up to the limit of the coverage, then the owner of the vehicle is responsible for any damages above that amount. Most likely, the other driver's underinsured motorist coverage will pay, then use legal means to collect from the underinsured driver. Just because you don't have sufficient insurance coverage doesn't mean you aren't responsible for the full amount of damages.


Well they could take you to court for the money, but if you haven't got it there's not much they can do to recover it. You could be forced to pay it back over a long time, with interest, or get forced into bankruptcy.Is it just the excess that you can't afford to pay? I didn't know you could get insurance which wouldn't cover the other vehicle, apart from the excess? Or are they refusing to pay out the whole amount because you didn't declare something properly when you got insurance, like a modification on your car?If you weren't fully insured then you could have problems from the police as well because that is an offense.


Your kidding right? There are legal terms called "liability, limits and deductibles". There is a difference between damaging a VW bug and a Mercedes Benz S class. If the damages exceed the policy limits the policy holder is responsible for the difference, as well as any deductibles applying.They can do things like collection agencies, wage garnishments, and they can even seize tax returns. The lack of ability to make the injured party whole again does not matter. There are no debtors prisons anymore, but this will not fade gently into the night. And they can place a lien on your vehicle as well or seize it for partial damages.


What happens is the not at fault party's insurer sends you a bill for their payout. You must then pay them. If you don't have a job - get one. You don't get off the hook because you can't pay. They'll just have the DMV suspend your license until you pay. And if that doesn't get you moving, they will sue you and garnish your washes from every job you have in the future until the debt is paid.


Any damages above and beyond the coverage limits comes out of the pocket and personal funds of the at fault driver. Not an opinion.


How strange I would have thought you are either covered or not, how do you know if you are going to hit a wall next year or even next week or how badly, I'm glad we don't have that system


Then your f*ckedSource(s):The truth hurtsSorry:/



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