Ask Me Help Desk - Please help: Auto accident

Hello everyone,

In 2005, I met with an accident while coming from work just one block after I put my car into the road. I had my two kids(ages 6 & 8) in the back of my SUV and they were fighting about the Harry Potter movie they had seen. I turned back for like a second to tell them to stop fighting and that's when it happened.This honda had put into the road and she had braked so my right front hit her car on the left rear. So, we stopped and I didn't anything about accidents except from what I have heard to exchange insurances info. But she didn't want to communicate and I also couldn't understand because she couldn't speak english well, they were russian. In their car they had over 6 people, how they all sat their I don't know and they had cameras and they took pics of both cars.
So, I had to call the police since the lady didn't want to communicate in any way. The police officer took statements from both of us. I told the police just what I said above. It was just a small thing, but they got my insurance company to get them a new car. My insurance lady told me they are complaining about neck and back injuries and are trying to file a law suit. I thought it was done and taken care of but today my insurance lady calls me and tells me that they have till July to file for the law suit and they are not agreeing to her and that I will be served.
What is going to happen if they do? I don't understand how it works for example what happens when I'm served with the papers. My insurance lady said if that happens to contact her immediately and that she will get an attorney. I don't work anymore, I have been a student/housewife, my marriage has fallen apart and I don't have anything except my kids and what ever my husband has... they want $20,000 a piece.. Is the insurance company paying all.. because if I'm not mistaken I think that's my insurance lady said. If it's not enough will they take my house? Please help. Thank you very much for any help. Sorry for the long question.
Rachel

Do exactly as your insurance company says, call them if you are served. The insurance company will bring in a lawyer to defend the insurance company.At this point it is the insurance company who will be paying and they will try to settle the matter. The insurance company may offer the injured parties some money. Maybe even the whole $20,000. Your insurance coverage must be large enough to cover this expense. If the people don't like to settlement offer it will be the insurance company who will defend themselves in court. You should keep in mind that it does sound like you are totally responsible for the accident. Taking your eyes off the road is considered negligent conduct.

Ok, you took your eyes off the road and hit the rear of another car, so it is your fault.

Anytime you have an accident with some visible damage always call the police, even if you get a ticket, since if you don't there will not be proof of the damage.

Most likely they are claiming frame damage to their car or some other damage, that is of course up to your insurance company what they pay them for their car.

And yes they can and most likely will sue you. And of course be very happy if all they ask for is 20,000 each many times they will want 100,000 or more a piece for injury.

So the question is how much liability insurance do you carry, many states have a mim requirement of 25,000 which would only cover one person, so the rest will come after you personally for the money.

If you have 200,000 or 300,000 in liability coverage ( look at your insurance card or policy and it will tell you)

If they win more than the insurance company has to pay, yes they will come after you, they could get a judgement attach your bank accounts, garnish your wages. A lien on the house would depend on the state you live in, in some states it could be allowed others it would not be.

Quote:

Originally Posted by rachel27

Is the insurance company paying all........If it's not enough will they take my house? Rachel

Hello Rachel:

In the first place, you hired the insurance company to defend you, and they are. If you (your insurance carrier) wins, then nobody gets nothing.

But, your insurance company is only liable for the limits of your policy. If the ruskies win MORE than that, then you're going to have to pay the difference.

However, if you live in Texas or Florida, they can't take your house.

excon

First relax, As noted, it sounds like your insurance is doing what you pay them for. What is happening here, if the people you hit are figuring to get everything they can. You hit them, you are at fault and they are going to milk it. Reminds me of my first accident when I was young. I was on a date and we were moving slowly past a movie theatre. I glanced up to check the times and didn't see traffic stop ahead of me. My foot was not on the gas, but not on the brake either so we just drifted. So I bumped the guy in front oe me (a teen also on a date). The only damage was a slight, barely perceptible ding on his rear bumper. We exchanged info and I went home and told my parents (it was dad's car). A couple of days later, the kid's father called with some ridiculous estimate to fix the car. My dad said to just tell him to submit the claim to the insurance co. (we both had the same insurer). His response was "If I have to go to the insurance company I'm going to send my kid to the doctor!". Next thing I know we received notice of a suit for more than $10K and that was over 30 years ago! We just let the insurance company handle it and we never heard anything more.

So, that's what appears to be happening here. You will get a notice of the suit. You might even get a summons to appear in court, but it will never happen. The insurance co. lawyers will fight it out, reach a settlement and your insurance company will pay it.

The ONLY thing you have to worry about is what your personal liability coverage is. If its more than $100,000, you shouldn't have any worries.

Hi,

My insuarnce card says that liability coverage is 'bodily injury' is $100,000 each person and $300,000 each occurrence and 'property damage' is $50,000. I don't quite get it. But from what my insurance lady says I have enough coverage. Oh, I hope so, because I'm scared to go to courts and stuff because I don't know what its like... and I do not want them to take money out of work pay when I get one and I'm going through a divorce and it's too much to handle. I have never met with any accident before or have any tickets, even a parking ticket.
I just want this to be over... Thank you for your answers.. because I have no family or anyone to ask at this point. So, Thank you.
Rachel

I am not sure what you do not get??

Your insurance will only pay one person up to 100,000 each, and pay no more than a total of 300,000 for any one accident. And no more than 50,000 for the car ( property)

So in your case they pay for the car from the 50,000 and if you had 6 people who want 20,000 that is 120,000 so it would be covered.

You really need to talk with your insurance people and understand what you have.

This covered this accident but you may want to look at a little more property damage, if you had a multi car accident, lets say you caused a wreck of 2 or 3 cars, and they were all Hummers or Linclons, you could easy have one car worth over 50,000 now adays.

Quote:

Originally Posted by ballengerb1

Do exactly as your insurance company says, call them if you are served. The insurance company will bring in a lawyer to defend the insurance company.At this point it is the insurance company who will be paying and they will try to settle the matter. The insurance company may offer the injured parties some money. maybe even the whole $20,000. Your insurance coverage must be large enough to cover this expense. If the people don't like to settlement offer it will be the insurance company who will defend themselves in court. You should keep in mind that it does sound like you are totally responsible for the accident. Taking your eyes off the road is considered negligent conduct.

The above is incorrect. The insurance company does not have a lawyer to defend itself, it hires a lawyer to defend YOU, the insured. YOU are the one whose name is going to be on the summons & complaint, and YOU are the one that will be served. The attorney hired by the insurance company is responsible for protecting YOUR interests first, rather then those of the insurance company. This is a common ethical issue we lawyers have to deal with every day. The conflict between what is best for the insured, and what is best for the people paying you (the insurance company). That being said, you are personally responsible for any verdict taken against you. Your insurance company will reimburse you up to the policy coverage amounts. (in this case $300,000). Chuck correctly explained what the coverage (100/300) means.

Now the good part. While you can be held personally liable for anything above your insurance policy limits, the liklihood of that happening is about one in a million. For a few reasons:

1. If the injuries warranted a payment of well over the $300,000, attornies like me would rather take the $300,000 settlement right away, then drag a case out for 3 years in order to get a judgment against someone and try to enforce it against them personally. I don't have the time or desire to garnish your wages for the next 30 years to pay off a judgment, I'll take the money now.

2. If the injuires CLEARLY warranted payment of the $300,000 policy, the Plaintiff's are willing to accept it, and your insurer failed to make the payment (figuring they will roll the dice at trial and try to save a few bucks), yo would have a case against the insurance company for what we call "bad faith claim refusal".

So Rachel, you can relax. Your insurance will cover you, its unlikely there will be anything over the amount you are covered for. Just let your insurance carrier do their job and relax.