Auto Insurance Claims: ATV wrecked.---does owner have to use their own collision coverage?, phone conversations, collision coverage

Question
My cousin is suing my husband and I when he used their ATV. He hit a tree with it. At the time that it happened, they claimed they would go to their insurance company to claim it, now they're suing us saying that they aren't required to go to their insurance. Is that true? We offered to pay any insurance deductible and that was agreed upon after the accident and during any phone conversations we had. They got out address and then sued us instead. If someone has isurance they shoudl be claiming it since they're allowing many people to use it at will.

Answer
Dear Amy,

What if your wish came true and we forced all owners to use their own collision coverage rather than making the party at fault pay?

Well . . . . yes, the insurance WOULD pay the loss to the insured person, BUT THEN THE INSURANCE COMPANY WOULD TURN AROUND AND SUE THE PARTY AT FAULT.

That is what keeps our insurance costs lower: the companies have a subrogated interest to sue the tortfeasor for the amount that they paid out.

Now, for another topic, what if the victim does not want to make a claim on her own insurance?  Should we require everyone to make a claim versus resolving the dispute themselves if they can?

I think that you can see where I am going here: the victim has every right to try to collect first from the party at fault in lieu of turning it over to her insurance.  

NEW TOPIC: have you considered pleading "preexisting settlement agreement" in the court case?  Did you ever agree on the total amount of damages that is less than what they are suing you for?  It sounds like you may have talked about that.  If so, then your agreement to pay the damages that were discussed can keep them from suing you for higher damages in court.  This discussion would be akin to an informal settlement.

If the parties had agreed on a settlement amount---even if only informally---and if you were ready, willing, and able to proceed with the settlement, then that could be a binding contract and hence YOU CANNOT BE SUED for more than was agreed in the settlement agreement.  YOU HAVE THE RIGHT TO PERFORM YOUR SETTLEMENT CONTRACT.

I would respond to the lawsuit with this defense I have given to you and I would tender to the registry of the court the money that was agreed to be paid in settlement.  Thus, you are asking the judge to enforce the settlement contract instead of allowing them to sue for more than was agreed to.

Best wishes,

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