How long do insurance co have to payout for los of car?

Posted: Thu Jul 30, 2009 10:41 pm Post Subject:

Property Damage (PD) first....

I'm guessing the delay is that the other carrier has what we call a "policy limits issue". That is, the amount of the PD is more then their insured's limits. Now, they still are required to protect their insured with those policy limits (if they don't, they are acting in Bad Faith). In order to protect their insured they will require that each person sign a release. Meaning, you agree to accept what they are paying and not pursue any other PD payment (from their insured). If you don't sign, they won't pay. Their insured can offer to pay the difference... but he/she won't. Your only other recourse is to file suit. The other person's carrier will provide a defense (a cheap one... but a legal defense none the less). You will then win a judgement for the full amount of your PD. The other carrier will then pay you the same amount that they offered before. You will have their check and a judgement which is nothing more then a piece of paper. It's still up to you to collect from the other person but now you have a legal document stating that they owe $xxxx.xxx. Some states allow you to file a wit and attach the judgment to real property or loss wages. Some don't. It's all up to you to figure that part out. You getting what I'm selling? It might be easier to just accept the PD offer from the other person's carrier. You could call the other person and tell them that you'd accept it if they threw in a few hundred dollars... otherwise you might file suit. But I'm betting the other person won't even talk to you.

Since the state only requires people to have $10k in PD, it's a good idea to reconsider getting collision coverage on your vehicles.

Now for the Bodily Injury part...

They offered $2000.... I don't know if you should accept that either. Heck the medical bills could be $100 or $10,000. This certainly would make a difference as to if the offer was good or not. At the end of the day, only you can decide this. But if this is their first offer, you can be assured that they will offer more and/or you can demand more. It's a negotiation process. I'd not get too greedy or you will shut down that negotiation process. I'd also recommend that you wait until treatment is completed so that you know the scope of your daughters medical expenses. Time is on your side. My recommendation is that you also involve your daughter in this settlement as she is the one who suffered from it. It's a good life lesson and she will probably feel better about any settlement if she is a part of it.

Posted: Thu Jul 30, 2009 11:34 pm Post Subject:

Are you saying that even though driver was only insured for x amount in property damage, his insurance company will pay for legal defense if we file suit for remaning monies?

Also in state of Pa our insurance pays for medical bills not at fault drives insurance company. confused there...

As for my daughter, she is doing well and will involve her in any decisions we make as far as settlement. Not only is that part a good lifes lession, this has made her more aware of the dangers of driving. Thank you for reply and advice.

Posted: Thu Jul 30, 2009 11:42 pm Post Subject:

Are you saying that even though driver was only insured for x amount in property damage, his insurance company will pay for legal defense if we file suit for remaning monies?

Also in state of Pa our insurance pays for medical bills not at fault drives insurance company. confused there.