Talk to a local CA attorney. Sometimes the insurance company will accept a lot less than you owe. If you can't get anything worked out, bankruptcy might be a last option.
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In addition to the other posters, in New York a drivers policy follows the individual. Check with your company/agent.
You should contact your brother's insurance company and ask them why they did not pay the claim. You were driving your brother's vehicle with his permission and therefore you are covered under his policy. Unless you were specifically excluded on your brother's policy. Furthermore, your personal automobile insurance company should cover you as well. Your liability is driver specific and covers you for essentially any vehicle you drive. If neither your brother's insurance company and your insurance company will defend you against the claim (or pay it), then I suggest you be direct with the collecting insurance company about your financial situation. You are effectively "judgment proof" with a small income and no assets. A judgment in favor of the insurance company would be uncollectable. Maybe offer a couple hundred bucks to make it go away. I encourage you to play the hardship card as long as possible before offering to pay anything.
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