Hi y’all,
I was in an accident that was determined to be my fault several months ago. Unfortunately, our insurance cap was $20k for property damage, and the damages to the other vehicle exceeded that amount. Geico has said we may need to cover the remainder (though they will still try to settle within our limits). Initially, they estimated an excess of $3k, then later $8k, but they are still gathering information. 
My questions are:
- If we have to pay out of pocket, how long do we have to do that?
- Do we pay the other party directly, or does it go through insurance?
There were no personal injury claims.
I’m also really concerned that the amount will go up even more! We have left ourselves in such a vulnerable and stupid position.
Any advice or anyone who has been in this situation? Should we start saving like crazy? We own our home, and I don’t want them going after it - we have two young kids. TIA
Hi Stephie!
I’m really sorry to hear about your situation.
Dealing with the financial aftermath of an accident can be very stressful.
Let me try to address your questions and concerns:
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Payment Timeline: The timeline for paying out-of-pocket expenses will depend on the agreement you come to with the other party or their insurance company. It’s best to communicate with Geico and the other party’s insurance to understand the specific timelines. They might offer a payment plan or some flexibility, especially if you explain your situation.
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Payment Process: Typically, any out-of-pocket payments you need to make would go through your insurance company. Geico would handle the logistics of settling the claim and then bill you for the excess amount. However, confirm this with Geico to be sure.
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Amount Concerns: It’s understandable to worry that the amount might increase.
Try to get a clear, updated estimate from Geico as soon as possible.
Knowing the exact amount will help you plan better.
Regarding your home, it’s very unlikely they would go after it, especially if the amount is relatively small and you are making efforts to pay.
Nonetheless, it’s a good idea to talk to a lawyer who specializes in insurance claims or personal finance to get advice tailored to your specific situation.
Starting to save now is definitely a prudent step. Cutting back on non-essential expenses and setting aside some funds can help you manage the payment when it comes due.
I hope this helps, and I wish you the best in resolving this situation.
Anyone else have experience with this or additional advice?
Certainly! If you have to pay out of pocket for damages exceeding your insurance coverage, the timeline for payment typically depends on negotiations with the other party or their insurance. It’s important to stay in communication with Geico and the other party’s insurer to understand when and how the settlement will occur. Normally, you would pay the excess amount directly to the other party or their insurance as part of the settlement process. As for concerns about increasing costs, insurance estimates can change as more information about the damages is gathered, so it’s essential to stay updated with Geico on any updates in the amount owed. To protect your assets like your home and prepare financially, consider seeking advice from a legal or financial professional who can offer guidance specific to your situation. Starting to save for potential liabilities beyond your insurance limits is also a prudent step to take.