Auto Insurance Claims: 50/50 - Liability Exposure?, bodily injury liability, liability exposure

Question
QUESTION: My sister recently got into an accident at an intersection.  She only has liability coverage. The adjuster says it looks like the claim will be 50-50, since there are conflicting stories regarding who had the red light. My sister's vehicle has minimal damages (front bumper ripped off), the other vehicle is worse, it lost control after the contact and hit a drive. My sister was not injured, but the other party was. From what my sister was telling me, it looked like his arm was bleeding. He was coherent after the accident, as he called an ambulance. The preliminary police report indicates that liability cannot be determined, which further will probably result in 50-50 determination, according to the adjuster. My sister mentioned that her insurance would most likely deny any claims from the other party, and the other insurance would do likewise. The vehicle is also registered/insured with my mother.
I am wondering what my family's possible liability exposure is, since the other party was injured.
Does that mean, if the other party tries to sue my family for property, and medical, there will be no help from our insurance?
If the liability is determined to be 50-50 by both insurance co., shouldn't the other party be responsible for 50% of medical expenses, and our insurance should cover the remaining 50%, up to our liability insurance's limits?
We are in California.

ANSWER: Hello Mike,


If the liability is determined at 50%, the insurance policy would be have to covered 50% of the other party's damages up to the policy limit. For example, if their damages are $100K, then your sister would owe 50% of that or 50K. The policy would have to cover that amount if the limit is 50K or more.

Remember that we are talking about a double limit here. There is BI or bodily injury liability limit and a Property damage liability, in other words, your limits are different (and damages are not added together) for the damages to the car and the medical bills and pain and suffering.


Regarding your question about you being owed 50% of you expenses for medical bills and pain and suffering. Yes, you sister is entitled to recovered that much also 50% form the person who hit her. However, her recovery will be barred at 50% because she only has liability coverage (does not have collision).

The way something like this works is this way (for her).

Her medical bills get paid under the PIP or Medical Payments coverage (most insureds have this coverage even when they only have liability coverage. If your mom has declined these coverages, or simply does not have PIP and/or medical payments then different analysis apply) up to the limit (Usually something like 5K). The insurance company will recover only 50% of what they paid.

For pain and suffering, she will only get 50% of her pain and suffering directly from the other insurance company when she settles.

Regarding the car, she can only recover 50% of the damages to the car directly from the other insurance company as she does not have collision.

All of these are contingent on both insurance companies being 50% at fault. They will probably argue this in arbitration. To learn more about arbitration, please see:

http://www.auto-insurance-claim-advice.com/arbitration.html

Also, please see more about California Regulations here:

http://www.auto-insurance-claim-advice.com/driving-without-car-insurance-califor

I hope this helps,

PS. If the damages are above and beyond the limit of liability after they take a 50% liability reduction, your family could be exposed to liability.

Good Luck
Anne
http://www.quirogalawoffice.com/

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

QUESTION: As a what if question, if my sister is taken to court because the other party's claim is denied by our insurance, and the other party wins the judgment, would our insurance be required to then pay for Property/Bodily Injury damages that are awarded, up to our policy limits?
Sorry for the run-on sentence.

Answer
Hello again,

Yeah, if the insurance companies cannot make their mind (or the other party simply goes to court) whatever judgment is rendered, the insurance company must pay it (the 50% - 50% decision might be modify to 100 to 0 or whatever). The insurance company will be bound to their limit of liability.

By saying that the insurance company will go after your sister in court I assume you mean small claims court.

If you mean regular court, the insurance company will have to furnish a defense (an attorney) to protect and would still be bound by the judgment.  

Good Luck
http://www.quirogalawoffice.com