Question: I was involved in a car accident. The other side has sent my insurance company a letter asking for my policy limits. Should I disclose them?
Answer: When you are involved in a car crash, your policy limits are privileged under the Insurance Privacy Act. That means no one can get the policy limits without your express permission. So, your insurance company is asking for that permission so it can comply with the law.
But, there is an exception. In litigation, in other words, when you are sued, your insurance limits are no longer privileged. The other side, the Plaintiff, is entitled to those limits. The mere filing of the lawsuit after a motor vehicle accident alleging you were negligent lets the other side get this information.
So, what do you do? I always tell clients when the insurance company asks for permission, give it to them. It is easier for you to give the information now then to wait to be sued to give it up. If it helps get the matter resolved, then why wouldn’t you release it? They could sue you, get the information, and then settle, but then you have a lawsuit against you as a public record. Despite what your adjuster says, releasing the information is in your best interest.
My advice: release the insurance limits when you are asked for this information.