Auto Insurance Claims: Minor accident..but found out no coverage, minor accident, visible damage

Question
QUESTION: Hello,
While backing out of a parking space my car hit another traveling the wrong way on a one-way street. My car had no visible damage but the other car had a couple of dents in it. There was no other damage or injury to either side. The cop wrote a report.
I called my insurance only to find out that my coverage was canceled due to non-payment (shame on me!), and I had no coverage when this happened.
After 4 days (with my policy now reinstated) the other insurance company called asking for a recorded statement. What am i looking at in this scenario? What are the best and safest options?
Should I consider giving a recorded statement? Should I find a lawyer?

Please help!!
Chet

ANSWER: Hi Chet,

Don't bother with an attorney, they likely will not want to get involved in this.

Yes you should give a recorded statement. However, in your recorded statement you must be sure to tell them that the other driver was going the wrong way down a one way lane.

That way you can claim that the other driver is primarily if not completely at fault. If it was a one way lane then you would have no expectation that traffic would be comming from the wrong direction and therefore no obligation to look for traffic comming from the wrong direction. At the very least you should argure that you are not more than 50% liable for the damage.

If you are successful at having to assume a percentage of liability, you will only be responsible for paying that percentage of the repair cost of the other drivers car.

It may be a good Idea to go inspect the parking lot before you call to be sure it was a one way lane. Take a digital camera with you to take pictures. Take pictures from all angles and even with other car going down that lane to show there is only one way traffic.

If all else fails, you will be responsible for the entire repair cost out of your pocket.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Richard - Firstly, my heartfelt thanks for such a speedy response.
My followup question is : Is contacting the driver of the other vehicle directly to settle out of the insurance framework (perhaps by convincing them of my liability of paying for upto 50%) a viable/better option? I ask because there were no altercations or any fault finding, and things were congenial. If you do recommend this, at the end of it how do we ensure that the "case" is completely closed?

My reason for exploring the above approach is that I'm worried that if the other driver or their insurance calls my insurance, and get told that at that time we had none,it may give rise to other complications.

Thanks again!

Answer
Hi Chet,

I'm sorry this response was a bit slower.

The approach you outlined may have been successful if attempted on the spot. The other party has already reported this to their insurance company. That would mean that they are paying for the damage and will be looking to you for reimbursement. I think at this point you should do your best at minimizing your losses with the other persons insurance company.

I hope this helps
Richard Hixenbaugh