QuestionHello, I recently was in a car accident where the person in front of mt hit their brakes and I rear ended them. I found out though this accident that my insurance had lapsed. I am liable for the cost incurred to the other individuals vehicle. The person I hit's insurance sent me a letter stating "We request that you do not make any settlement with our insured that would affect our right of recovery. The amount of any claim and any supporting documentation will follow". I received a letter from the insurance collector yesterday that the total owed by me is $2050.00, I received a letter from the individual I hit today requesting that I only pay the sum of $500.00 to cover their cost of the deductible. I have not been in contact with either party yet. If I pay the individual the $500.00 does that void my responsibility to pay the insurance company? Please let me know, and I am unsure. I would obviously prefer to pay the individual, but do not wish to have to pay the other in addition.
AnswerRear-end accident defenses
No tail light cause rear end accident
Sudden stop cause rear-end auto accident
General release property damage claim
General release future personal injury claim
Settle property and bodily injury together
No insurance accident
No auto insurance filing
Department of licensing no insurance
Avoid proof of insurance filing
Dear Chad
You have three things at stake here, but you have only asked about one: (1) whom to pay or to settle with. But my two topics are pretty important also: (2) how to avoid a personal injury claim from coming out of the woodwork in the future, and (3) how to avoid having the department of licensing get word of your having an accident without being insured.
You will have to act quickly, and be prepared to pay in cash, or perhaps work some arrangement with the insurance company in order to keep them from reporting the accident to your state licensing department.
Five Topics For You to Work In For Successful Resolution:
1. Consider reducing any claim by finding comparative negligence on the part of the alleged victim.
Is there any possibility for negligence on the part of the alleged victim? You have two possible excuses to hit the victim. First, are you sure both of her brake lights were working? And second, was this a sudden braking on her part? What if she did not keep an eye out in front of her such that she put you in an untenable emergency situation where you could not avoid the accident? She could be partially at fault here.
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2. Deal with the insurance company AND the victim.
You owe the victim for ALL of the damages she sustained, irrespective of who helped her to fix her car. The insurance company has a derivative right to sue you based upon the victim's right to sue you—so you have to pay for the entire claim. Once the insurance company put you on notice of their claim, you cannot accept a release from the victim in exchange for the deductible payment only.
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3. Try to settle this ASAP—WITH NO DELAY for any injuries to develop in the victim. Settle with both the victim and the insurance company separately if at all possible, so you can get the victim to sign a personal injury release (see #4 below).
Tell the adjuster that you will pay both claims. And borrow money to do so if you have to. If you cannot borrow money, just get the victim settled NOW and make arrangements to pay the insurance company over time. BUT THEN THEY MAY REPORT YOU TO THE DEPARTMENT OF LICENSING (for having no insurance when you caused an accident). In most states, that can result in both a citation and a requirement to file SR22 form insurance (proof of insurance), which will make a substantial increase in your rates (see #5 below).
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4. GET GENERAL RELEASE SIGNED. Don’t let the insurance adjuster "educate" the victim that she needs to get some medical attention: get her to sign a release that includes all personal injuries. So NEVER MENTION THIS TO THE ADJUSTER in advance or he will tell the victim that she cannot sign a release unless and until a doctor tells her she will have no injuries. Try to get this done NOW.
Ahhh. . . . what if the adjuster tells you to pay both claims to him and he will procure the victim's signature? Try to avoid that if you can. But if he insists, then tell him to use a general release that includes both property damage and bodily injury. If he does not understand what you want, just send him the form below, completed, of course, for your accident.
GENERAL RELEASE FORM: DON'T JUST PAY PROPERTY DAMAGE WITHOUT A GENERAL RELEASE FOR PERSONAL INJURY AS WELL
You are embarking on DANGEROUS GROUND by paying for the damage to the car UNLESS YOU ALSO GET A GENERAL RELEASE FOR PERSONAL INJURIES AT THE SAME TIME. Soft tissue injuries can occur with a bumper hit as you described. The insurance industry loves plastic bumpers since they do save damage to the car. Unfortunately the momentum, the force (mass times velocity) is not dissipated, but can be transferred directly to the occupants of the car.
I would not be surprised to see someone start to notice an ache in her neck about 10 to 20 days or so after the accident. That kind of soft tissue injury can creep up on her and within a month her work is making it harder to sleep at night and next thing you know, you have a personal injury claim to defend. Now what will you do??
It is best that you take care of that item with your car damage payment. Make sure she signs off on a general release that includes BOTH the property damage and personal injuries, known and unknown from this accident.
Tell the insurance company that you think she is at least 20% liable (see #1 above regarding potential comparative negligence), but that you will pay for all of the damages on two conditions. First, that no lack of insurance affidavit be filed with the department of licensing (unless absolutely required by law), or that no specific mention be made of the fact that you were uninsured. And SECOND, THAT SHE SIGN A GENERAL RELEASE. Thus, you are going to offer them a compromise on condition that they go and get his signature on the general release I made for you below.
Here is what I would do: draft up your release and tell the insurance company that you are disputing the claim because of her negligence. But that you are willing to pay them for the cost of repairs, but you want her to release you from any and all claims for damage to her property or to her person, to include all personal injuries now known and unknown. Then you will have a good solution—and you never have to worry about a soft tissue injury that could develop when her work places an added stress on her neck that was injured. Does that make sense?
One phone call is OK to firm up what you are going to do, but as to rest of the claim, MAKE EVERYTHING IN WRITING AND GET HER SIGNATURE ON YOUR GENERAL RELEASE in which you specifically include language such as the following:
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GENERAL RELEASE—AUTO ACCIDENT OF _______________
__________________ and _____________________ were in an automobile accident in _____________ on ________________. As a result of the accident, _______________ suffered damage to her vehicle, and may have suffered personal injuries.
Without admitting fault, the parties wish to settle and compromise all claims arising from this incident forever. __________________ hereby pays to _____________________ the sum of _____________________, receipt whereof ________________ hereby acknowledges, and further states that said sum constitutes complete compensation for all claims from said incident, whether known or unknown, and to include both property damage and any personal injuries that might have been suffered in said incident.
This General Release and payment made hereunder are intended to bring closure to this matter and any further claims shall be forever barred.
Dated _______________
I trust that my extra time here in making up the document for you 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.
http://www.SettlementCentral.Com
