Auto Insurance Claims: car accident

Question
QUESTION: my husband was in a head on collision recently..it looks like hes going to be at fault. the other driver had a broken leg and unable to work again. my question is.. if he accepts the settlement from our insurance can he still sue us? and is it true they can garnish his wages for the judgement?

ANSWER: Hi Raena,

If the case has gone to court and a judgement was entered, what happens from there will depend on a couple of things.

If the judgement was for more than the amount of coverage on your policy then your insurance company will issue payment for the amount of coverage you had and the injured party can pursue your husband for the balance. If you live in a state that allows wage garnishment then yes they can garnish your wages. If not then they can only file the judgement along with a lien against any property you own or your car.

If the casee has not gone to court and your insurance company reaches a settlement agreement with the other party, then they will require then to sign a release foem in exchange for the payment. That means that your husband would be released from any further payments. You should contact ytour insurance company and ask them to explain in detail to you what is happening, how much the claim is for, how much coverage you have and if they feel the claim will settle for an amount that your policy will cover.

I hope this helps
Richard Hixenbaugh

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

QUESTION: thanks that helped. my next question is this we live in the state of arizona so will they be able to garnish wages if they recevie a judgement? and we are planning on buying a new car to replace the one that was totalled will they be able to put a lien against it? his paycheck barely covers our bills as it is, also would they still be able to touch bank accounts or property if its in my name? and what about our tax return will it go straight to the judgement?

Answer
Hi Raena,

Unfortunately, your question is state specific and is also a legal question and not an insurance question, So I would not be able to answer it.

You should try to pose this question to an Arizona licensed attorney for an accurate answer.

I hope this helps
Richard Hixenbaugh