A close relative was at fault in a serious car accident. The insurance company refused the defendant’s offer to settle for the policy limit. The insurance company offered less but the defendant refused and went to trial. The judgment in favor of the defendant exceeded the policy limit. In my relative’s case, the insurance company was on the hook for the entire award because they refused to settle within the policy limit. No idea if all policies work this way.Has anyone had this experience where it went to trial after the insurance company offered less than policy limit and trial resulted in an amount greater than policy limit? Did the insurance company have to pay the full amount or was the insured left holding the bag for a portion?
Then they've taken the lid off the policy, and they're responsible for the entire verdict.
Statistics: Posted by HomeStretch — Fri Oct 10, 2025 6:56 pm — Replies 51 — Views 4395