My question involves insurance law for the state of: Florida
In summer 2008 I was involved in the accident and yesterday I have received a letter in my mail from another party's insurance company claiming a compensation.
It was an accident without any valid witnesses. I am truthfully claiming that he ran a red light, he is claiming that I did. It was an intersection with a traffic light, I needed to make a left and another driver was heading towards me. I waited till I have a green arrow, then proceeded to make my maneuver when I was hit by his car on my right side. Both cars were totaled, mine was worth about $20k, his - about $100k. On my insurance coverage, I had a limit of my liability coverage of $10k. Both of us were insured with different companies.
After the accident, I talked to my insurance representative, who was handling my case, and he told me that since there were no witnesses and I was making a turn while he was going straight, the accident will likely to be considered at my fault (The police officer on the site of an accident could not determine who was at fault, so no tickets were issued)
When asked what that might mean to me, I was told that my insurance company will agree that it is my fault and pay his insurance company $10k as per my limit. I then asked if I will be responsible for the difference, and I was told that his insurance will not claim the difference and they "would have to eat the difference" (exact quote).
However, as I've said before, his insurance company recently sent me a letter, saying that I owe them $90k since my coverage is limited.
I was wondering what should I do?
And as a separate question, what can they do to claim the monies from me? What are their limitations?
I know that ignoring the issue is normally a stupid tactics, but are consequences if I do not respond to their mail?