by vmsmexicano » Fri Aug 27, 2010 01:24 am
Auto insurers usually don't file lawsuits against individuals. It is because they always have the option of denying coverage. They locate any fault on your part, anything that doesn't stick to the policy terms, and they simply refuse to pay against your claim.
When do the auto insurers file a lawsuit?
Auto insurance companies might drag you to the court under certain circumstances as mentioned below:- For material misrepresentation - Your insurer may file a lawsuit against you claiming that you are guilty of 'material misrepresentation'. This can only be done if you were not completely honest regarding the details you provided while purchasing the policy. The insurance companies seek a number of personal and insurance related information, when you go out to purchase a policy. They usually check for the authenticity of information before allowing you the coverage. However, in case they overlook certain facts, many insurance applicants conveniently conceal the truth to get wider limits of coverage or lower rates on the policy. If the insurers find out about these later on, they may either cancel coverage or file a lawsuit against the insured.
- For ineligible drivers - You always have the option of including other licensed drivers of your household in your auto insurance policy. If such a registered driver gets involved in an accident, your insurer is going to pay for the losses depending on your coverage limits. However, if an unregistered driver or even worse, a driver without a license, has an accident with your vehicle, you'll be in deep trouble.The other party involved in the accident might make a claim, which your insurer is definitely going to deny. If the other party has an UM coverage, then his/her insurer will have to pay for the damages and injuries. Thereafter, they can sue you for reimbursement of the amount.
- For inadequate coverage - If you have inadequate coverage, i.e. when the damages exceed your coverage limits, then the other party's insurance will have to pay out. They can then come after you and ask you to compensate for the amount they've paid, just because you didn't have enough coverage.
What to do when auto insurers sue you ?
People buy insurance for protecting their valuables. It possibly never occurs to them that the insurers can take them to the court. The below mentioned instructions might help you when your insurer files a lawsuit against you:- Respond immediately - It is advisable to respond immediately to these legal accusations, since it'll serve no good to ignore them. Besides, many states also impose limitations on the time period within which you have to send your reply. Delayed replies might cost you as your silence might be interpreted as your acceptance of the guilt.
- Discuss your situation with insurance experts - You can also seek advice from insurance experts about what to do in such situations. Consult insurance community experts and explain what happened to you. They might be able to suggest your way out of the mess.
- Consult an attorney - If you are unable to understand the accusations made against you or if you have no clue about how to defend yourself, then you need to consult a legal attorney as soon as possible.
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I let an unlicensed person drive my car, she was involved in an accident and found at fault by CHP, no injuries to either party. The accident happend in CA. I only have liability ins, Im assuming that the other person had full coverage because her ins company already payed her. Her ins company deemed her car total loss valued at $7,000 they settled for $9,000 because she was not the lien holder. I am currently trying to pay two morgages and a brand new car. Can her ins company sue me if my ins company doesnt pay them?
Posted: Fri Aug 27, 2010 02:04 am Post Subject: can my insurance company sue me
Her ins company deemed her car total loss valued at $7,000 they settled for $9,000 because she was not the lien holder.
I don't understand this. A person who owns a vehicle would not be a lien holder by definition. Also, a lien holder or not would not change the amount they would pay on a claim. I'm _guessing_ the difference between the $7,000 value and the $9,000 payment included other items owed, such as taxes, towing/storage, tax, loss of use, etc. ?If you have liability insurance your carrier should be handling all of this.
Liability limits in CA are greater then $9,000 so your carrier would be able to pa everything the other carrier is looking for.
Can her ins company sue me if my ins company doesnt pay them?
First, to put this into perspective... I cold sue you for the accident. Changes are _very_ good that both insurance companies are members of inter-company arbitration. If so, they signed a contract that states that cannot file suit in court. If one company is not a member, then yes... they could file suit against you. If the did, your carrier would pay for your legal defense. This expense is separate then your policy limits.Wanna know why that person did not have a license? I'm betting their driving skills are not the greatest. Just food for thought.
Posted: Fri Aug 27, 2010 04:07 am Post Subject:
I let an unlicensed person drive my car
Please tell me you didn't know she was unlicensed when you let her drive your car.
A word to the wise: don't follow this example! Learn from it.
You're very fortunate that the person driving your car did not do more damage than she did. A number of companies drop otherwise high liability limits to state minimums (15/30/5) when a vehicle is being driven by an unnamed or, worse yet, unlicensed driver. You could be hung out to dry for any amount over $5000 if that's true about your policy (or if you only carry the minimum to begin with). And thank the Lord she didn't hurt anyone, or you might have been kissing your home goodbye instead.
If your insurer has paid the maximum limit of liability in your policy on a claim that exceeds that amount, then it has no responsibility to defend you beyond that point. Again, your butt is possibly hanging out to dry. Hopefully, the other vehicle owner has uninsured/underinsured motorist coverage just in case. You could be sued for any uncovered amount of damages. I suppose an insurance company could choose to go after you for any amount they paid from their insured's uninsured motorist coverage (if they have it).
Liability limits in CA are greater then $9,000 so your carrier would be able to pay everything the other carrier is looking for.
tcope . . . that's not true. Minimum BI limits in California are $15,000 per person/$30,000 per accident and only $5,000 for PD. If the total vehicle loss paid by the other party's insurer was $9000, it could be far more than the OP's actual PD policy limit, and he could be left holding the bag for the difference.
Posted: Fri Sep 10, 2010 12:48 pm Post Subject:
It seems the other party had opted for more than just the minimum state liability limit in order to avoid sleepless nights. See, how it pays now!
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