No. Your insurance company will not surrender its policy limits unless the plaintiffs sign a full release. Once they sign the release, they cannot sue you. The plaintiffs can decide not to accept the policy limits and simply sue you but that would be stupid. Assuming no bad faith, the insurance company has no liability beyond the policy limits. So the plaintiff would have spent months or years of time preparing for trial and $10,000 or more in depositions and expert witness fees only to get exactly what they could have had at least two years earlier. When they try to collect the difference from you, you would probably declare bankruptcy (in which case they get very little) or the plaintiff would seek garnishment of your wages. There are limitations on how much of your income is available. No Plaintiff and certainly no attorney wants to be paid at a few hundred dollars per month. For all of these reasons, the plaintiff will settle for the policy limits. Good luck.
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Your insurance company normally will not settle if they do not get a full release. The other party should go after their own underinsured coverage. They can come after you though.
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while they can come after you for the difference, usually your insurance company will offer you some measure of protection by refusing to settle for their policy limits unless the injured parties sign a full waiver preventing them from coming after your assets. I say usually, because sometimes the damages are large enough and significantly above your limits that the insurance company will suggest you retain your own lawyer, separate from the one representing your insurance, if the possibility of excess judgement exists.
In some states, they can combine insurance policies from your vehicle and their own uninsured/underinsured motorist coverage. That may be enough to protect you as well.
Sadly, that is the risk of carrying low limit coverage. If you find out they are proceeding against you personally I strongly suggest you consult with a lawyer to represent you in court.
It depends whether or not the insurance company gets a full release or not.
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