Auto Insurance Claims: Asset protection, auto accident asset protection

Question
Hi Ron,

I was involved in an accident last year with a bicyclist in southern California. My insurance company has deemed me 100% at fault for the accident. The bicyclist apparently suffered from really bad injuries (broken bones and collapsed lung) and was hospitalized twice (first time for the accident, second time for infections from his injuries).

I know the other party has already hired an attorney and wants to know the limit of my policy. My insurance company keeps on telling me that the settlement may cost more than my policy limit which is $100k. I am really worried because this is my first accident ever. The car I drive is under my mom's name and so is the insurance policy. My mom has some assets (house, cars, etc), and I currently do not own any assets (I am 24 and just started working).

If my settlement ends up being more than $100k, is it possible for the other party to force my mom to pay? What should I do to protect myself and most importantly, my mom? I really don't want my accident to affect her. Do you have any other suggestions for what steps I should take?

Thanks a million for your help!!!

-J

P.S. I hope you won't get offended if I ask for a second opinion on this site.

Answer
Hi Jane,

Get all the opinions you can.

Yes, they will go after your mom because she let you drive the car.

I suggest paying an "accident lawyer" for half hour of their time to advise you and your mom how to protect your assets and "future earnings" against a court judgment. Your mom better start "moving" her assets now. Again, see a lawyer.

Tell your mom she needs to start buying "umbrella" insurance. I pay about $200.00 per year for a 1 million dollar policy that covers claims over the policy limits on 1 house and 2 cars.

With the injuries you described, I'm sure your insurer will pay the limits and the injured persons lawyer will litigate, lie, mislead and stab you in the back. In America, lawyers don't have to tell the truth unless they are under oath, like on a witness stand in court. I hope you are getting my message.

And your Mom better get help you out, like it or not, if she wants to protect herself.

I also suggest you maybe start doing something with that bicyclist, to earn some sympathy points. Whether it's a phone call, card, letters or a visit or flowers or candy or whatever.

Good luck to you Jane.