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Your Policy Limits and Your Privacy

February 10, 2006 by Jonathan Stein

When you are in an automobile accident, the other party may request your insurance limits. Basically, they want to know how much insurance you have. Do you have a 15/30 policy, or a 50/100 or a 100/300 or what?

Why do they want to know this? There are several reasons. First, sometimes they are just curious. This is rare. Second, and more likely, they want to know if you have enough insurance. This is especially true if they were seriously injured. Third, they want to know if they should do an asset check on you.

Should you tell your insurance company to release your limits? Yes. In California, privacy laws do not allow the insurance company to release your limits. But, there is a case that says the insurance company must ask in writing if the other side wants to know. And, the other side is entitled to them once a lawsuit is filed. So, while you do not HAVE to release your limits, it really does no one any good if you do not. Some attorneys will file a lawsuit solely to get your limits, if you refuse to release them.

The moral of the story: release your policy limits and avoid the problems.

Categories: Auto Insurance, Claims, Law, Personal Injury

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