Must I pay the excess instead of the insurance company
I injured somebody in an auto accident. The insurance company refused to settle within my policy limits. The jury awarded damages in excess of my policy limits. Must I pay the excess instead of the insurance company?
Not necessarily. Your insurance company owes you a duty of good faith. If you have a policy that has a $100,000 limit, and the injured person has sued you for $1 million but offers to settle for $100,000, the insurance company cannot unreasonably refuse to settle because "it has nothing to lose" (other than attorney fees) by letting it go to trial. If it refuses a reasonable settlement offer within the policy limits, and the verdict is for more than $100,000, in many states the insurance company may be held liable in a bad faith action for all damages you suffer, and possible punitive damages.
Must I pay the excess instead of the insurance company
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