QuestionQUESTION: Hello - About one year ago I was involved in a car accident where someone
hit me while I was stopped on a median waiting to proceed. I ended up being
the one who got the ticket and eventually was "adjudicated guilty" because I
was advised by the ticket clinic that I hired that I did not have to go to court,
and that they would defend me. It turned out that there were two or three
separate hearings and the ticket clinic's "attorney" never advised me to go to
court to defend myself.
Anyway, now I have received a letter from the other party's insurance
company's lawyers (Progressive) requesting payment for the remainder of the
amount that my insurance company (Bristol West) doesn't cover (my policy
only covers me for up to $10,000). My insurer offered them a "prorated"
amount of about $7500, because there were two other parked cars that I hit
after spinning around, and they're expecting claims on those cars as well,
even though I haven't received anything from them (yet). It might be
noteworthy to point out that those other 2 cars were parked on a grass area
right under a stop sign, that my car ran over after I spun and lost control of
the vehicle, which to me seems like illegal parking.
The 2nd party's insurance lawyers are demanding payment of an additional
$10,000 and if I don't send them a check then I am facing a possible lawsuit.
My insurance company has said they will likely not settle for less and even
though they owe me a defense that I will be held responsible for attorney's
fees and then subsequently for whatever amount I end up being ordered to
pay.
I am already $25,000 in credit card debt that I am still current on but
considering debt consolidation, and adding another $10,000 and possibly
more for an accident that I sincerely feel was not entirely my fault, only adds
to my woes.
Do I have any options or relief here?
Thank you in advance for any guidance you can provide me.
ANSWER: Hi Erika,
If you have been determined to be at fault for the accident, you will be responsible for paying the claims that are not covered by your insurance policy. You can make a monthly payment arrangement with them. Even though they may talk tough, they will deal with you. They are no different than any other bill collector.
The two cars you discussed that were parked on the grass can not be held responsible even if they were illegally parked. The drivers were not in the vehicles and they were not moving so the drivers can he liable.
Seeing how easy it is to exceed $10,000.00 in damage, you should contact your insurance agent and increast your coverage to at least $25,000.00 or more so this does not happen to you again.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: Richard - thank you so much for the quick response. I guess my next question would
be, should I wait to have this case taken to mediation between the two insurance
companies to see if a settlement can be reached - even though my insurance company
is saying that the other insurance most likely won't settle for a lower amount - and in
this case am I going to be held responsible for any court costs - or should I just accept
this and arrange to make the payments to them right away?
Thank you again,
AnswerHi Erika,
You should not make any payment arrangements without the approval of your insurance company. You should call your insurance company and ask them this question to see if you making a payment arrangement will somehow interfere with their arbitration.
I hope this helps
Richard Hixenbaugh
