QuestionQUESTION: i was involved in a car accident in 2007, and it was my fault. the other driver claimed that she has injured. in 2008 my insurance company (progressive) worked out with the driver and paid her $25,000, which is the limit, and the driver signed the general release. few days ago i received a letter from her insurance company (nationwide) saying that i need to pay nationwide $86,000 because that was what nationwide paid their insured. what should i do now. i thought once signed the general release, there will be nothing has to do with me anymore. why nationwide wants me to pay their loss? is that legal? i contected my insurance company already. what should i do now?
ANSWER: Hi Tong,
Without seeing the release form, it's hard to comment. You should contact Progresive and get verification of the type of release that was signed. Also ask them if it is proper that Nationwide is seeking payment from you for the balance.
The release that was signed may only have released Progressive and left you on the hook for the balance. That way the injured party could pursue an underinsured motorist claim with Nationwide. You may need to speak to an attorney. If this is being properly done, you may be sued for the $86,000.00.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: okay. thanks for this information. by the way the release she signed was for me not progressive. so does that change the story?
AnswerHi Tong,
That would depend on the actual wording of the release form that was signed. As I said earlier, it may have only been a release for the first $25,000 to get Progressive to issue a check for their policy limit and may have left you on the hook for the balance.
You should take a copy of the release form to an attorney to obtain a legal opinion of the validity of the release form and if it is proper for Nationwide to be comming after you for the balance.
I hope this helps
Richard Hixenbaugh
