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Is my insurance company legally obligated to pay pay property damage claim after I lost at an arbitration hearing?

Pittsburgh, PA |

I got sued by the plaintiff because originally my insurance company refused to pay there property damage claim. I was represented by an attorney my insurance company provided and lost. The judgment was for the plaintiff. Does my insurance company have to pay this claim and is there a time limit if so. I'm afraid the court will take my drivers license if it is not paid.

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Attorney answers 4

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I would say the insurance company will pay the award, negotiate it down or appeal. It is not your problem unless they defended you under a reservation of rights and are denying indemnity (I seriously doubt that is the case). In Pa. your license can be taken for an unpaid civil judgment, but NOT if you had financial responsibility (insurance), which you did.

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I'm surprised that this question hasn't been raised before by you and answered by your lawyer. If the insurance company takes control of the defense, they should be explaining to the insured (you) what happens in various possible trial outcomes. Then again, some insurers defend cases under a "reservation of rights" by which they mean to reserve the right, among other things, to dispute that their insurance covers this particular claim or case.
If it isn't clear to you that the insurer is going to pay, and your lawyer isn't giving you a clear answer on that, then you may need to talk to another lawyer, soon, about your rights and your risks.



Can the insurer defend under reservation of rights if I had liability limits for the other persons property damage (auto) of $50,000 and there loss was $6,000.00. There was a dispute over who ran the stop sign and I lost

Thomas Richelo

Thomas Richelo


It sounds like you should have coverage but I can't render an opinion based on this limited review. Your attorney, although paid by the insurer, represents you and has a duty to let you know what your coverage situation is. If the attorney won't help you with that, then talk to another attorney. Good luck.


If they did not deny insurance coverage, they will have to pay. The license cannot be "taken" as a result of a civil judgment


You insurance will have to pay (unless there was some sort of a coverage issue etc)

This is not intended to be legal advise or as legal representation. I am a California personal injury attorney . Be aware that every state has its own statute of limitations; and statutes & case laws that govern the handling of these matters.

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