QuestionMy wife was in an accident last October. Our insurance was out of Michigan but the accident was in Indiana. Michigan is a no-fault state and Indiana is a tort state. My wife was forced off the road by another driver who fled and was not caught. An officer was present when the accident happened, he did not wittness the entire accident but he did not write my wife a ticket. My wife was forced into another vehicle which caused a chain reaction with several other vehicles.
Now the insurance company that covered the Indiana vehicle subrogated and the two insurance companies agreed to an amount to be paid. Our insurance company would only pay half of the aprox $5500 settlement. even though we had a $25,000 coverage. I can only assume that they had already paid out the cap on our vehicle and all the other vehicles involved. Now the insurance company of the Indiana vehicle is sending us a document telling us that we are personally responsible for the difference. They also said that they would set up a payment plan at a LOW INTEREST RATE OF 8%, and they will not except any payment below $100 per month. My first question is are we responsible for the difference, and if we are can they demand a minimum payment
Answer Hello Carl,
Based on your description, I cannot understand why your insurance company would pay anybody anything. I say that because your wife clearly is not at fault for this accident.
Under your Michigan No Fault, your wife would not be responsible for damages to any of the other vehicles. "Regardless of fault" only applies to payment of medical bills and property protection - not including cars.
Indiana only requires liability coverage, including a $10,000 minimum for property damage (PD) coverage. If the at fault driver had insufficient PD to pay for your loss, your collision insurance should pick up the entire amount of your damages. Collision is paid for your damages regardless of fault. Your liability coverage should not be touched. Your wife is not liable.
However, I'm not clear on all the details. When you say "they" in this quote, what do you mean? "I can only assume that they had already paid out the cap on our vehicle and all the other vehicles involved." Are you saying that your carrier accepted liability and paid out your property damage limits? Are you being held personally responsible for damages because your insurance company incorrectly assessed liability to you and max'd out your PD? Or is it because they decided you were "only 50% at fault" and then they hung you out to dry for the balance?
There is one important element here - your insurance company's job, by contract, is to protect you.
Why does the Indiana insurance company have any right to subrogate? Insurance companies subrogate when they pay damages to their driver who is not at fault. In subrogation they receive reimbursement from the at fault carrier. It should be the reverse. If your insurance company paid collision damages to you, YOUR company should be subrogating the other carriers.
As to the police officer, either you see the accident or you don't! He is not required to be a witness in order to prepare his report. Did he assess any liability to your wife on his report, and if so, what?
Please fill me in on the details so that I can help you further. You can just send me a follow up.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
