What should I do if another insurance company is asking to be reimbursed for a car accident?

Asked by user in Pennsylvania.

I rear ended a car a few months ago. My car was totaled. Her car had damage, but no injuries. My insurance company paid her insurance company the $5,000 max that I had on my policy. Her insurance company sent me a letter saying that they want me to reimburse them for the remainder. I’m a little scared because I don’t have that kind of money. What should I do?

The driver of the vehicle you rear-ended has the right to sue you for the damages that exceed your policy limits. In other words, if you refuse to reimburse the insurance company, the driver may file a lawsuit against you. If that were to happen, the driver would have to prove that they sustained damages above your limits (i.e., more than $5,000).

If you believe the amount the driver is demanding is reasonable, it may be in your best interest to try to work out a payment plan with the insurance company. If you believe the amount is unreasonable, it may be in your best interest to refuse to pay and let the driver file a lawsuit.

You may also consider meeting with an attorney in your area to discuss your options in more detail. If you can’t afford an attorney, consider reaching out to the Pennsylvania State Bar Pro Bono Program.