Site menuA claim was filed against my insurance company for $15,000 because a person got hurt when I hit his car. My automobile insurance policy only covers $10,000 for bodily injury to one person. Can the company settle for more than $10,000 and make me pay the difference?
Answer:
Often, they would rather get the case settled than face a lengthy dispute and possible court case. Generally, however, the limits on your policy would be the maximum amount they would offer to pay. In fact, those limits can be a powerful argument to the other side in favor of settling.
If they are expecting you to pay something beyond the limits of your policy, you would certainly have a right to accept or reject the settlement.
The insurance company has a right to settle the claim without your approval.