This is a complicated area of the law but generally, your insurance co. owes you both a duty to defend you against lawsuits and a duty to pay damages you're liable for up to the policy limit. That's why you paid for the policy.
Turn this most recent letter over to your auto insurer and let them sort it out. If they won't and you get sued or a judgment against you, you may have a case against your own insurer, which lawyers or at least this lawyer loves.
All the best.
Mr. Myers is correct -- alert your carrier to this claim pronto.
In no way am I offering you legal advice, and in no way has my comment created an attorney-client relationship. You are not to rely upon my note above in any way, but insted need to sit down with counsel and share all relevant facts before receiving fully-informed legal advice. If you want to be completely sure of your rights, you must sit down with an experienced criminal defense attorney to be fully aware of your rights.
Not that this helps much at this point but I always point out to my clients the need to carry adequate insurance, the minimum policy will just not protect you when you have either caused an accident or have been injured in an accident. It really doe not cost that much more to up your insurance policy you need to do a comparison to see how much more a little more coverage will actually cost and I think you will be surprised.
Your insurance should be able to provide you with a defense. Best of luck.
This answer is provided by California Accident Attorney Manuel A. Juarez, Esq., 510-206-4492. Abogado de Accidentes de Autos de California: 510-206-4492. Abogado de Lesiones de Accidentes de Autos, provides answers of a general context. These answers are not intended to form an attorney client relationship. Oakland Abogado Accidentes Autos, Abogado de Lesiones Personales, Abogado de Accidentes de carros, Abogado de accidentes de Peatones, practices in Antioch, Berkeley, Concord, Oakland, Hayward, Martinez, Newark, Richmond, San Francisco and San Rafael. El abogado de lesiones y heridos en accidentes de autos, is licensed only in California. This information is good only in California and it is not to be taken as legal advice on car accidents, personal injury, divorce, bankruptcy or in any other type of situation. Esta respuesta es del Abogado de Accidentes de Autos, Abogado de Lesiones Personales, Abogado de Heridos en Accidentes de carros, Manuel A. Juárez, 510-206-4492. Abogado Hispano de Accidentes, Abogado de Divorcios, Abogado Latino de Accidentes, Abogado de Accidentes de Oakland, Hayward, San Francisco, California. Estas respuesta son solo para información general y no consisten en consejo legal sobre divorcios, mantención de esposas, mantención de hijos o bancarrotas. Las respuestas son comentarios legales que no forman una relación de abogado y cliente. Manuel Juarez, Esq., esta licenciado solo en el Estado de California.
Everyone is saying the same thing here. Turn it over to your insurance company as they have a duty to defend. I like Mr. Cortrights advice. I always tell my clients to get better insurance if they have low limits. Good Luck!