I caused a minor wreck and now the other driver is suing me for way more than my policy covers — help

I was on the other side of this — someone low-limit hit me — but I watched my cousin go through exactly your situation a few years back. First thing he did wrong was signing something without reading it carefully. Please, before you put your name on anything, call your insurance company. That's literally what they're there for. They're supposed to assign you a defense attorney when claims go over policy limits.

Do NOT sign anything without talking to someone first. That 'acknowledgment' letter could be worded in a way that waives defenses or admits liability beyond what the accident actually established. The other side's lawyers are not your friends — they drafted that document for their client, not for you.

Not legal advice, but two things jump out at me: (1) contact your insurance carrier immediately and report that you've received this demand letter — they have deadlines they have to meet in responding and the clock may already be ticking, and (2) do not sign the document they sent without at minimum having someone review it. If your insurer drags their feet or you feel like they're not protecting your interests, that's when you'd want your own personal attorney separate from whoever they assign. Some people in excess-of-limits situations actually have claims against their own insurer for bad faith if the insurer mishandles things.

The document they sent you might be called an affidavit of assets or a consent to settle — the language matters a lot. Some of them are basically just formal proof that you have limited coverage, which can actually work in your favor because it shows the other side what they're realistically dealing with. But again — don't sign blind. Your insurance company should be looped in immediately if they aren't already.

I can hear how stressed you are and honestly that makes total sense. This sounds really scary. Please don't try to handle this alone — even just one phone call to your insurer will probably make you feel a little less like you're drowning. You don't have to have all the answers right now, you just have to make that first move.

Few questions that might matter here: Did you file a claim with your insurance when the accident happened, or did you try to handle it privately at first? And has your insurer already been in contact with the other side? The answers to those change things a lot. If you tried to keep insurance out of it initially, that could complicate your coverage.

I know this feels like the worst possible situation but honestly — the fact that you have minimal assets actually gives you some protection here. Plaintiffs' attorneys are pragmatic. They know they can't squeeze blood from a stone, and often these things resolve at or near the policy limits once everyone does the math. You're not necessarily facing financial ruin, even if it feels that way right now.