PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What happens when the person at fault for an accident doesn’t have enough insurance?
I have a liability-only policy. Another driver hit my car and one other car in an accident and both are totaled. The guy that is at fault for the accident only had $5,000 in property damage coverage. His insurance company is waiting for the total damage from the other person in the claim. They won't pay until I sign a release.
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Unfortunately, the total of the other not-at-fault person’s damages are going to impact how much the insurance company is going to offer you to settle the claim.
They pay the damages on a pro-rata basis from the
property damage liability
coverage on the at-fault person’s policy.That means, if your damages total $5,000 and the other not-at-fault person has $10,000 in damage, the insurance offer would be $1666.67 for you and $3333.33 for the other party (your damage/total damage x PD limit).
When you sign the release, you are giving up your right to pursue the other party or their insurance for the rest of the damage in exchange for the payment being offered.
If you refuse to sign the release, you can pursue the other party directly for the damages, but you cannot sue the insurance company because they are only obligated to pay up to the policy limits.
“
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
.jpg&w=64&q=75){kind=avatar}
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
