by Diana » Thu Jun 11, 2009 06:55 am
I was in an accident where I made an illegal U-turn and someone hit me. It was determined by the police report as being my fault. The car that hit me was a newer model, and I recieved a letter from my insurance company stating that the damages to the other party might be above my limits. I only had basic liability coverage as I am a very broke 20 year old college student who was driving an older car. Does this mean that the other party is definitely going to sue me or can sue me? If that is the case, I will be unable to pay them so would they garnish any wages I earn? Would I need to file bankruptcy?
Posted: Thu Jun 11, 2009 07:38 am Post Subject:
Hi Diana,
I only had basic liability coverage as I am a very broke 20 year old college student who was driving an older car. Does this mean that the other party is definitely going to sue me or can sue me?
They might or might not. It entirely will depend upon the other driver. But if you are already broke then I doubt it'd worth the trouble.
Was there anyone hurt in the accident?
Posted: Thu Jun 11, 2009 12:39 pm Post Subject:
The truth of the matter is that although they could sue you, you can't squeeze blood out of a turnip. If the other party realizes or discovers that you are a broke college student, they should know that it would be a worthless venture on their part that would end up costing them a lot more money in the future.
Now if there were injuries in the accident, I would be a little more concerned with the possibility of unpaid medical bills.
In the state of California, wage garnishment is an option for judgments...However, civil lawsuits are a different category of judgment being that it is not derived from borrowed money. If they did begin to garnish your wages, it would be limited as to what they would be allowed to take.
If they do end up suing you, or finding that you owe them more money...it would be better to set up some type of payment plan. It's far better to comply and work with the court system than force them to utilize wage garnishments.
Posted: Thu Jun 11, 2009 12:58 pm Post Subject:
Hi Diana,
May I know which state you're from?
The car that hit me was a newer model, and I recieved a letter from my insurance company stating that the damages to the other party might be above my limits.
I do empathize with you at this one. But please show us with a more detailed account. Did the other car get totaled?
I'm sure your carrier would get the details of the other party's damage. Please do keep in touch.
Steven
Posted: Thu Jun 11, 2009 01:19 pm Post Subject:
They could sue you... and a handful of reason's why they won't. _If_ the other person's loss exceeds your policy limits you carrier will offer your policy limits but _only_ if the other person signs a release for that amount. The release means their claim is done against you. If they don't sign, your carrier won't pay and the person will be out that money for the time being. You don't mention if this is property damage or an injury.
Many people have coverage through their own carrier (some don't). If your carrier does not have enough money to address the other person's property damage then most people will file under their own collision coverage if they have it. This transfers their right of recovery over to their carrier and their carrier is simply going to accept your policy limits.
If the other person refuses the policy limit offer they would pursue you directly for recovery. They would need to file suit. This could be by themselves in small claims court (and they would be limited to the amount you can sue for in small claims) or in civil court in which case they would need to pay an attorney. Your carrier would defend you if such an action was taken. Your carrier would also offer up your policy limits if a judgment was obtained. If the other part obtained a judgement they would get your policy limits but they would still need to file wits, etc. in order to see any money from you. Do you have any money to pay them? It could be 10, 20, 30 years before they see anything. In the meantime they have spend more money out of their pocket and don't have anything to show for it.
These are reason's why this will never go to court. The other party, or their carrier, will simply accept your policy limits.
Posted: Thu Jun 11, 2009 06:39 pm Post Subject:
I'm in California & I'm not sure if anyone was hurt in the accident. My insurance company hasn't mentioned anything, & I don't think anyone in the other car got medical assistance at the scene. I definitely don't have any money to pay or any assests. I'm still wondering about the bankruptcy option though. If they were to sue me (which thanks to you guys I now know that's unlikely) and if they were to win would I be able to file bankruptcy to avoid garnishment of my wages?
Posted: Thu Jun 11, 2009 06:44 pm Post Subject:
Can they garnish wages in CA? I think you are getting _way_ ahead of yourself.
Posted: Fri Jun 12, 2009 04:21 am Post Subject:
Diana, I don't think you yet have to worry about filing bankruptcy. I think what you have heard from the expert's here should have restored you some peace of mind. The only thing that's worrying me is the possible bodily injury liability claim.
My insurance company hasn't mentioned anything, & I don't think anyone in the other car got medical assistance at the scene.
Does that mean that there were more than one occupant in the car when you hit it?
What is your policy limit anyway?
~Jeremy
Posted: Fri Jun 12, 2009 04:24 am Post Subject:
my policy limit 25000 or something like that...i'm not really sure since its my mom's policy..i honestly don't know how many people were in the car..i guess i would have to review the police report.
Posted: Fri Jun 12, 2009 07:31 am Post Subject:
I think the minimum PD limit required in Cali is $5,000. Then you have pretty high limit. If the other party's loss is still going to exceed the limit then I assume that the accident was pretty severe. I'd be surprised if no injury claim turns-up in due course.
Please check with your policy and let us know.
Posted: Fri Jun 12, 2009 11:01 am Post Subject:
Hi Diana
my policy limit 25000 or something like that...i'm not really sure since its my mom's policy.
So the policy is owned by your mom and you were only driving her car with her permission? Since you have caused the accident, the other party could definitely sue you if they felt the need to. But since your liability limits are way too low they may have to make an UI claim on their own policy.
But tcope, if Diana doesn't own the car and if she is only listed in her mom's policy, would she have to face the claims? Or would the claim be turned on to her mom's insurance. I'm a bit confused in here.
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