Auto Insurance Claims: liability of co owner, victim services division, underinsured motorist coverage

Question
In Texas, I was hit by a drunk driver that was convicted. The drunk driver had no insurance. I was seriously injured and underwent surgery. The vehicle was co owned by a relative. Negligent entrustment does not apply here since both of their names were on the title, the relative could not entrust it to the co owner. However, does the co owner relative have any liability in this matter? If so, under what legal cause of action can I sue the relative?

Answer
Hi Tim,

I am sorry to hear of your injuries, and I do hope that you will be restored to good health soon.  Unfortunately, I do not have any magic to get you back to financial good health.  Your research is pretty good in that you touched on the issues by which we can hold the owner liable, except for one: agency.  When you sue them, you can find out whether or not the driver was doing any errand for the co-owner.  If so, then the driver would have been his agent, leaving the co-owner fully responsible.


Here are some ideas.  You basically have four avenues for compensation.
#1. Use your own Underinsured Motorist coverage (UIM)

#2. Suspend the licenses of both co-owners until they post financial responsibility

#3. Determine if your state has a criminal compensation program by contacting your Victim Services Division of the Department of Justice (or your state house representative)

#4. Bring an action directly against the two co-owners: one as driver, and the other for failure to insure.  Note: as to the latter, he probably will contend that the most he owes is the state minimum policy limit—$25,000.  The only way to fight this is to prove that the driver was the agent of the co-owner, leaving that co-owner liable for 100% of your damages.

Here are some comments on the first two of those topics.

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#1. Use your own Underinsured Motorist coverage (UIM)
This is something you no doubt have already started, along with your Personal Injury Protection (PIP) to pay your medical bills.  

You will want to get some idea of how to present a personal injury insurance claim http://www.settlementcentral.com/page0014.htm

You should fight if your company tries to diminish your UIM Policy limits by the amount it paid out in PIP.  Hence, subrogation is going to be a BIG issue since you will likely be forced to defend against claims made by YOUR OWN COMPANY against your UIM insurance award http://www.settlementcentral.com/page0459.htm   Remember, your UIM stands in the shoes of the tortfeasor, and hence your own PIP might try to get its money paid back, and thereby reducing the amount of your UIM limit available for pain and suffering compensation.
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#2. Suspend the licenses of both co-owners until they post financial responsibility
First, every car in Texas must be insured.  If it is not, then the owner must stand good for the damages or he will have his license suspended.  At least that is how the law is supposed to work.

First, of course,, you should get the accident report ASAP, or if there is no official report, contact your county sheriff and get a STATE accident form and complete it.  You will discuss the facts of the accident, and the medical costs and your injuries in the report.  You also need to furnish an affidavit about your injuries and an estimated amount of your damagaes.  DO NOT make this unreasonable, since you want this to be a figure that the State can realistically use for the license suspension.

Next thing to do is to inform both owners via certified mail of your injuries and the fact that in Texas, automobile owners are required to carry proof of insurance coverage. The fact that they did not reply, or replied and admitted there was no insurance, will be used later if you need to sue them personally.  

You need to check with your state department of motor vehicles and department of licensing to see how the insurance law requirement is enforced in your state.  Here is how it usually works.

As soon as possible (some states have a 60 time limit for this filing, but they also seem to ignore it?), get instructions on how to file.  You will need three things: a) the accident report; b) your affidavit of damages; and c) some supporting documentation, such as medical reports and billings.  

The state will set the amount of damages that they think a jury might award.   Let’s say they set it at $55,000.  

The department of licensing will send a certified letter to both the driver and to the co-owner telling them that their licenses will be suspended within ten days unless they post that $50K as the amount owning because of the accident.  They are allowed to post it to a bank account that is blocked pending the trial result.  OR—AS MORE OFTEN HAPPENS, the parties compromise on both the amount owning and how it shall be paid.

Just FYI, after this process, the driver and the owner will be required purchase and maintain SR22 filing insurance.  THAT is more expensive since the group that has to file the SR22 proof of insurance is not a good driving group.  Little good that will do you now, except that you could use it as a threat if you were to make contact with the two of them prior to your filing with the state.  Maybe you could enter into an irrevocable agreement to  pay over time with interest.

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I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com