Other driver is asking diminished value claim of 4k so total she is asking 14k ..while her property damage cover is only 10k...so even though its only 4k
This doesn't make a lot of sense. Are you basically saying that the other driver is, in fact, seeking more than the $10k limit of the policy? Has the insurer offered to pay the $10k policy limit? If so, has the other driver rejected that offer?
you know once it goes to lawyers its always more.
I don't know any such thing. Nor can I conceive why someone might involve a lawyer for a $4k ($14k - $10k) property damage claim.
she does not know anything about personnal injury claim as of yet but my friend is worried that if it goes to lawsuit
Then she should talk with the adjuster at her insurance company who is handling the claim. The adjuster will certainly know if the other driver is claiming any injuries.
my friend is worried that if it goes to lawsuit ...it will skyrocket and that is why she wants to take steps necessary.
Steps necessary for what?
Filing bankruptcy because something MIGHT happen is silly. Moreover, it's not like there's any rush. If, in fact, the other driver sues -- and, honestly, I suspect the other driver will back down unless she has SIGNIFICANT injuries in excess of policy limits -- your friend will have plenty of time to file bankruptcy. Lawsuits take several months -- at a minimum -- to complete. Your friend should be focusing her energy on making sure her insurer resolves the claim within the limits of the policy. She and her husband also need to give serious consideration to increasing their policy limits going forward.