by Guest » Fri Aug 29, 2008 10:27 am
Dear all,
I was in a minor fender-bender car accident earlier this year in January 2008. It was a wet and rainy day, when the car in front of me made a sudden stop, I stepped on my break as soon as I saw the front car stepped the break, however, my car still skidded and bumped the rear bumper of the front car.
The damage was minor, the other car's rear bumper was bent, and the grill and hood of my car was a little bent, there were 2 persons on the other car, the driver and another passenger, they came out of their car and we exchanged insurance information. No one was hurt and no police came.
The other driver and myself both reported to our own insurance carriers, and after investigation by adjusters, I was told that I am 100% at fault, I accept that I am at fault, and my insurance company said that they will take care of the rest, I have full coverage and I am in California.
But, last month when I renewed my auto insurance policy, of course my premium went up because of the accident and the fact that I am at fault, but my auto insurance agent also told me that my insurance company alreay paid for the other party's propery damage, but the other party is not willing to settle with the bodily injury part, the other party is claiming that they have neck and back pain and other sufferings due to the accident.
Today, I received a notice from my claim adjuster saying that the other driver and the other passenger has hired an attorney against me for bodily injury and request that I release the limit of my bodily injury liability coverage, what should I do?
Do I have to release the limit of my bodily injury liability coverage to the other driver's attorney?
Will my insurance company release the limit of my bodily injury liability coverage to the other driver's attorney?
I understand that I am at fault, but it was really a minor accident, I thought the case was closed a few months ago, but now the other party got an attorney against me, will I be in big trouble or get myself into an excess judgement?
I recently purchased a house, I am scared that I will lose my properties in an excess judgement?
I am really upset, can someone please help?
Thanks a lot.
I was in a minor fender-bender car accident earlier this year in January 2008. It was a wet and rainy day, when the car in front of me made a sudden stop, I stepped on my break as soon as I saw the front car stepped the break, however, my car still skidded and bumped the rear bumper of the front car.
The damage was minor, the other car's rear bumper was bent, and the grill and hood of my car was a little bent, there were 2 persons on the other car, the driver and another passenger, they came out of their car and we exchanged insurance information. No one was hurt and no police came.
The other driver and myself both reported to our own insurance carriers, and after investigation by adjusters, I was told that I am 100% at fault, I accept that I am at fault, and my insurance company said that they will take care of the rest, I have full coverage and I am in California.
But, last month when I renewed my auto insurance policy, of course my premium went up because of the accident and the fact that I am at fault, but my auto insurance agent also told me that my insurance company alreay paid for the other party's propery damage, but the other party is not willing to settle with the bodily injury part, the other party is claiming that they have neck and back pain and other sufferings due to the accident.
Today, I received a notice from my claim adjuster saying that the other driver and the other passenger has hired an attorney against me for bodily injury and request that I release the limit of my bodily injury liability coverage, what should I do?
Do I have to release the limit of my bodily injury liability coverage to the other driver's attorney?
Will my insurance company release the limit of my bodily injury liability coverage to the other driver's attorney?
I understand that I am at fault, but it was really a minor accident, I thought the case was closed a few months ago, but now the other party got an attorney against me, will I be in big trouble or get myself into an excess judgement?
I recently purchased a house, I am scared that I will lose my properties in an excess judgement?
I am really upset, can someone please help?
Thanks a lot.
Posted: Sun May 17, 2009 05:01 am Post Subject:
so what was the update on this situation?
i would like to know, as i am involved in something similar, and all the questions niki has asked, and all that answered provided have given me a lot of helpful information...
only difference is..
car is deemed total
bi 15/30
4 people in the car
the husband, wife, two kids
they came out walking fine
probably experienced whiplash
or an overly exaggerated pain
and i was by myself..
i live in ca as well...
im insured under my cousins policy
im legally at fault and i accept that
and now the attorney representing him
are requesting the info like niki situation..
my question is regarding the excess claim thing...
if the fees were over my policy, or rather the policy under
my cousins name, will they go after my cousin for the money?
and is it bad if they knew my policy limits? if they did, they have an idea what to go after right? if they didnt would it be bad? and if they didnt and it goes over my policy, what happens then?
and the husband didnt have a CA driver license, does that matter?
Posted: Sun May 17, 2009 02:57 pm Post Subject:
The key thing in a BI settlement is that no money is paid by the insurance company without either a judgment or a signed release. A release means that the other party agrees to take the money and can no longer purse any other recovery. You'd think the attorneys were there to make sure their clients get paid. While this is true, it's only true as they then make 33% of that payment. So they are really looking to get a paycheck. Accepting money from the insurance company means that they only have to spend a few hours on the case and then collect a big payment. If they went to court your carrier would pay for a good defense to fight the claim. At that point the gloves come off and the attorney they hire uses every means possible to fight the claim. Even if the case when to an excess verdict the insurance company would simply pay the 15/30 and it would then be up to the injury attorney to collect the rest from you and your cousin. Do you have $10,000 sitting in the bank? So let me pain a picture... the injury attorney could take another case just like your and make $5000 in a few hours or spend hours and hours and hours on your verdict to get what...? A few bucks ever month for the next 30 years? It's not worth it to the injury attorney to do this. If you had some huge assets for them to take right away, yes... they might attempt to obtain an excess verdict.
Injury attorneys want to know policy limits because they don't want to waste any one's time asking for millions that are not there. Use your situation, why does the attorney want to waste time sending in a demand for $500,000... the lowering it to $200,000... then lowering it to $100,000... when he's really looking for $60,000. If he knows he wants to settle at $60,000 for everyone and knows that there is only $30,000, then he is just going to ask for the policy limits of $30,000 and not waste everyone's time. If the adjuster thinks it's only worth $5,000, then this is all that they will offer no matter what the demand is. This is why I don't mind telling attorneys what the policy limits are... my offer is going to be based 100% on the injury information... not the demand amount ('cause the demand amount is always some sky high number anyway).
Posted: Sun May 17, 2009 03:08 pm Post Subject:
Niki,
Did your claim finally get settled? what was the settlement amount?
Posted: Mon May 18, 2009 04:15 am Post Subject:
Whether or not to disclose the insured’s limit to the claimant’s attorney is a decision made by the adjuster, which he would do depending upon the situation or state requirement.
Pleasehelpme, your adjuster is your representative to the other party and if she feels that by disclosing the policy limit would actually be helpful towards a fast settlement, she would do that. Most likely it would be done if the claim amount exceeds the policy limit. it’d be done to inform the claimant what the maximum they would get from the claim.
OP, Tcope has once again given very sound advice. Hope it has restored your peace of mind.
Posted: Wed May 20, 2009 08:29 pm Post Subject:
logically it makes sense, but like you guys said previously, i live in the state of CA, the state where anything can be used as an excuse to sue...especially in this economy, suing people would be an easy way out...
ive talked to my adjuster and they said they can't offer their opinion on whether i should disclose my policy limits or not, they can only offer the process and whats the status of the situation/claim, but cannot in anyway give legal advice...which disappointed me...but after further thought, since i only have the minimum amount of coverage 15/30...i decided to disclose my information based on the opinions of lori and tcope...hopefully they will settle within this limit...
one question though, when they release the information to the attorney; they would only release the policy limits corresponding to the car at the time of the accident right? they wouldn't need to release every bit of information that is say my cousins car, since im under his policy?
Posted: Thu May 21, 2009 12:09 am Post Subject:
they would only release the policy limits corresponding to the car at the time of the accident right?
Yup, just your BI limits at the time of the accident on your policy only. Since you have minimum limits I think you should release the limit information as well. I can't see this hurting you... only making it easier for the adjuster to settle the loss.Posted: Thu May 21, 2009 01:14 am Post Subject:
I agree low limits let 'em know...stop the 'therapy' :roll:
Posted: Thu May 21, 2009 06:10 am Post Subject:
thanks, this site and post is very helpful....
i was just as confused as the next person, just like niki
but with the answering of the questions by tcope, lori, and whomever else that did...it gave us a better mindset as to what to expect, rather than walking alone in a dark tunnel...thank you very much! your words and opinions are valued and appreciated...
Posted: Thu May 21, 2009 06:56 am Post Subject:
i decided to disclose my information based on the opinions of lori and tcope...hopefully they will settle within this limit...
As Lori and Tcope has said releasing the policy limit would save both time and trouble.
The other party would get the maximum of the policy limit even if they sue. However, that wouldn't stop them from getting a judgement against you if the claim is indeed worth more than the coverage level.
Thanks,
Rupert
Posted: Thu May 21, 2009 10:14 am Post Subject:
As Lori and Tcope has said releasing the policy limit would save both time and trouble.
In this particular situation only...I'm not advocating that each and every time, and doubt tcope is either... :wink:
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