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I am being contacted by an insurance company after paying the drivers deductible. I don't have any money. What is my next step?

Waterford, MI |

I'm uninsured and don't have any money at all. I gave the driver money to pay his deducible and thought that would be the end of it. About a month ago I started receiving calls from his insurance company saying I still owed more money. I told them I didn't have any money and wouldn't be able to pay them but that I paid the deductible and had the driver sign a paper stating the date, the amount of money I paid. What are my next steps?

Attorney Answers 5

Posted

They are likely taking the position that you owe them what they paid on the claim. If you get sued be sure to answer or you will be defaulted.

Always consult an attorney IMMEDIATELY as there are time limitations on filing a lawsuit.

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2 comments

Asker

Posted

Right now that they are not suing does it affect my credit at all? And if they decide to sue will it be too late to make payment arrangements ?

Daniel J. Melican

Daniel J. Melican

Posted

I doubt it would be o. A credit report. It's not an unpaid bill or a judgment. If it was a judgment you can make a motion for installment payments.

Posted

Hope that they agree not to further pursue you.

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Posted

You are in a rough spot. All you can do is hope that the insurance company decides not to pursue you for the rest of the money. If it does, perhaps you can work out a payment plan. If the amount is too great, you might need to speak with a bankruptcy attorney.

I am licensed in Pennsylvania. This post is not legal advice, but instead contains general educational information. Please do not act or refrain from acting based upon what you read in this post. Also please remember that this post does not form an attorney/client relationship between you and me. If you have specific legal questions, you should contact an attorney in your state for assistance.

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Posted

You can try to negotiate amount down and get on a payment plan.

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Posted

Since you have a written acknowledgment of the payment, you may be able to use that as an accord and satisfaction defense. If not, though, you could be in for some rough financial sledding -- under Michigan law, if you are uninsured, the other driver's insurance carrier as a right to seek reimbursement from you for the amount it paid out. Even though you are probably thinking you cannot afford an attorney, you really cannot afford not to consult an attorney. The insurance company is not likely to leave you alone and you stand very little chance of successfully defending yourself without the assistance of an attorney. Sorry to be the bearer of bad news but, I highly recommend that you consult with an attorney as quickly as you can, preferably before you actually get sued.

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3 comments

Asker

Posted

I've read in other places that if it isn't a great amount of money sometimes the company chooses not to pursue. Is that a possibility or should the chance not be taken ?

Dani K. Liblang

Dani K. Liblang

Posted

Has the insurance company given you any indication as to how much it is claiming? Do you know if the claim is simply for the damage to the other driver's vehicle, or is the insurance company claiming reimbursement for medical bills, wage loss, etc.?

Asker

Posted

Only the vehicle and it's under 3000