Asked by user in West Virginia. Answered by Enjuris Editors.
The problem you’re describing is quite common. There are multiple claimants and the damages exceed the policy limits.
In such a situation, courts typically take one of two approaches:
First-come-first-served approach. Under this approach, the first person to settle the claim or receive a judgment will receive the insurance money (up to the policy limits) and anyone who files a claim or receives a judgment subsequently will not receive any money (since the policy limits will be exhausted).
Prorated approach. The more common approach is the prorated approach. Under this approach, the policy proceeds are distributed on a pro rata basis in accordance with the amount of damage suffered by each claimant. Keep in mind, this amount may be limited by the maximum “per person” coverage provided by the policy.
If you’re not satisfied with the amount the insurer is offering to settle your claim, I would recommend talking to an attorney in your area. In addition to helping you negotiate a settlement with the insurer, your attorney can file a lawsuit against the at-fault driver for any damages above the policy limits.