Car Insurance vs.Health Insurance?

This question is actually more complicated than you realize. Your best bet is to call the adjuster handling your claim. They will be able to tell you how this works in your state.

Here's some very general information-

If you cause property damage/injuries to someone else - your liability coverage pays for that.

But what happens if your limits are not sufficient to pay for all of it?

This depends.

Do you have assets? If yes, then expect to get sued. They injured parties lawyer is going to come after you. And assets don't mean just a bank account, retirement fund etc. It can mean land. So, if you live on the farm land that has been in your family for 100 years.....yep- they will come after that.

If you do not have assets - You are much less likely to get sued. It can still happen -but it's less likely. A lawyer will want to make sure you have something he can take before he comes after you.

If the injured party has health insurance -- that's not going to help you at all. The injured party having health insurance does not reduce your legal liability to him at all. Many states have a Collateral Source Rule that prevents you from getting any type of credit for any medical bills paid by his health insurance.

If you do not have sufficient limits and no assets -- then most likely the injured party would file under his Under-Insured Motorist Coverage. (if he has this coverage on his policy). Usually in this situation - the injured party just settles for your policy limit and his UIM (if he has it).

In some states, the UIM carrier can come back after you for repayment (for what they had to pay the injured party). If they do this - they will set up an interest free payment plan with you. As long as you make all your payments on time, there is no further action taken. If you stop paying - then they can (and will sue you), suspend your drivers license and/or turn you over to a collections agency.

If a law suit gets filed against you - your insurance company will hire an attorney to defend you (in accordance with your policy language). The suit papers will be served on you (usually by process server or certified mail). Immediately take those papers to your adjuster or agent. Your insurance company will get those papers to an attorney.

However, if you get served with suit papers -- your attorney has 30 days to get an answer on file. The clock starts running when you get served. So the faster you get the paper to your insurance company the better.

If you think you are going to get served -- don't hide from it. If they can't get you served by process server or certified mail - they may do it by publication. And who actually reads the legal notices? So, you end up getting served with out even knowing it. -- Does not matter though. If you don't answer with in 30 days it's a default judgement against you (that's an automatic you lose).

Again- call your adjuster. He/She will be able to give you more detail regarding your case. Adjusters know that this is all new to you......there is no such thing as a stupid question. So call and ask any that you have. That's what the adjuster is there for.

**not legal advice-- only an attorney can give legal advice.