The driver is demanding my $10,000 liability coverage from my car insurance and $30,000 personally from me. Their attorney requested I fill out a Financial affidavit, which I declined. My insurance company has offered to pay the coverage limit. It's been almost four weeks and I haven't heard from the parties attorney or if they're just going to settle for the 10K. This case is bogus and this person used a "1800-PAIN" type of council.
The main car that was damaged was my own, not totaled. This person was the 3rd and last car and only got a dent. What she is claiming is outrageous to what actually happened! This person was walking around and in NO pain whatsoever!
I am a college student and I had no idea about car insurance, I know going forward to up my policy.
Your insurance will defend your interests prior to and after any lawsuit. These cases generally resolve for under or at limit of your liability insurance. You should cooperate with your insurance company and notify the carrier that you want this settled. If you have assets, you should consider consulting a bankruptcy attorney; I would add that this is good opportunity to review your policy to see if you should up your limits of liability-- especially if you have assets. If there is lawsuit, the insurer will defend the case by contesting damages and liability, amongst other things. At that point, if you have the means, you may want to hire personal counsel. There a lot of possibilities but you generally should not worry too much about this situation.
I agree that you should cooperate with your insurance company. If the other party chooses to file suit, your insurer will defend you and pay any settlement or judgment up to the policy limits. Most cases resolve for policy limits or less. From your posting it sounds like yours should also resolve for policy limits or less. However, if the claimant feels the case is worth substantially more than $10,000 and you have assets worth going after, he may reject any policy limit offer and try to go after your assets. Make it clear to your insurer that you would like to see the case settle for policy limits. Hopefully that will happen without your case proceeding to litigation.
This response is for information purpose only and does not constitute a legal advice. This response does not create an attorney-client relationship.
I agree with my colleagues and with a 4-year statute of limitation, this sort of thing happens. Let you insurance company do the work.
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I both agree and disagree with prior advice. If I understand what you have said, the attorney for the injured party made a demand upon you. If this is indeed what happened you need to send that to your carrier immediately so you don't lose coverage. Your carrier will defend you but you also have a duty to cooperate. If the demand is only for 30k to you it appears that no big injury exists. It is my opinion that you are required to execute a financial affidavit if requested by your carrier. Unless you have a fair amount of non exempt assets like a vacation home etc you will be judgment proof and most likely nobody will sue you individually to seek an amount above your policy limits. If you cooperate with your insurance and they pay the limits they should obtain a full release for you where you cannot be sued for an excess amount. Recently I have had cases where the person causing the accident refused to execute an affidavit and the insurance company paid the policy limits without a release and took the position of not having a duty to defend based on lack of cooperation from the insured thereby leaving the insured alone to defend a lawsuit or if they defend anyway it takes away any bad faith against them.
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