by chicagochinnodu » Fri May 07, 2010 03:47 am
Hello Lori, I rear ended a Brand new BMW at a green light, my old honda civic was totlaed and was offered 3k$ as total loss, i am from NJ and have PD/BI limits of 5k/15k. The damage for other party car was 14k. My insurance company had paid the 5k and I got a letter from other parties insurance company to pay the difference 9k. I forwarded this letter to my insurance company. She spoke to the other company and came up with a settlement that if i pay 4.5k in lumpsome, it could be settled. Now my question is? if i accept to pay 4.5k instead of 9k and settle this, would I be liable to pay the BI claim also? just because i accepted to pay the PD? The other driver had hired an attorney and sent a notice to my insurance company . Itseems he has a history of hip pain and the accident had aggrevated it and he might need a hip replacement. I am very much worried now. I am an immigrant from India and am here on my work visa, graduated a cpl years ago and working now. I have no house, car or anything. Would they garnish my wages or would this lead to some sort of bankruptcy or something? Could you please advice on this? Should i accept to settle the PD claim? My major fear is the BI claim. I have been issued a careless driving ticket hired a lawyer and I had plead bargain for guilty , but the case was sealed(civil registration). I would very much appreciate your response on this.
Posted: Fri May 07, 2010 12:34 pm Post Subject:
I personally wouldn't agree to paying for ANYTHING with a pending BI, unless they will release that as well (and they won't)....and I would tell them, that I'd pay the 4500.00 but ONLY for a release of 'any and all claims known and unknown' and make sure it says NOTHING about the damage to the car only..
I mean what's the point? You pay 4500.00 then they come to you in a couple of months for repayment of 30k for the injury? naaaa, no way I'd agree to this.
There is always the possiblity your BI limit will cover the injury...but doesn't sound likely.
Sorry, but here's a lesson for the masses in low limits...a 5k repair, isn't much anymore...(IMO) shame on states even allowing that low of a PD limit....
Posted: Sun May 09, 2010 09:44 pm Post Subject:
thanks for the reply Lori....
what wud happen if in any case . I would not be able to pay the BI claims? will they garnish my wages?
Posted: Sun May 09, 2010 09:49 pm Post Subject:
and what role does the other parties UIM play in this?
Posted: Mon May 10, 2010 12:36 pm Post Subject:
Your carrier has to do all they can to protect you, by getting that BI settled within your limits. If they cannot, they will not release ANY money to the injured party. But the UIM cannot come into play unless and until your policy limit is paid.
As far as garnishment is concerned, they would have to get a judgement first, then file it. Could it happen? Sure...
Posted: Mon May 10, 2010 12:44 pm Post Subject:
Thanks Lori.
But then y did not the UIM come into picture for the PD?
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