At a minimum, you ought to consult with an experienced trial attorney, even if you don't hire them to defend you. The claim that is being pursued against you is a subrogation claim, meaning that the insurance company is coming after you to be reimbursed for what they paid to their insured, presumably under his uninsured motorist coverage. But every defense you could have raised against the other driver you can raise against them. Don't simply ignore the case. You may be able to work out some sort of modest payment plan. And bankruptcy is potentially a road to relief as well. Good luck.
The author of this post is licensed to practice law in the District of Columbia, Maryland, and Virginia. This post is intended as general information only, and is not provided as legal advice in connection with any specific case, and does not create an attorney-client relationship.
I would add that I have seen insurance companies settle your type of claim for a small percentage of the total because some is better than none. You may wish to offer them what you think you can afford and see what happens.
I concur that your best option at this point is to explain your situation to the insurance company and try to work out a reasonable settlement. You should certainly work with a local attorney (I am not licensed to practice law in MN, so you need to check with local counsel on this issue), as he/she can assist you in negotiating more favorable terms of a settlement. If you are unable to afford an attorney, many counties offer pro-bono legal services to those in need, so it may be a good idea to contact your local Bar Association to inquire about that.
Beware that this is not something to ignore - the insurance company will continue to pursue you and may get a judgment against you if you do not respond to them. Good luck you.
Now for the disclaimers: ________________________________________________________________________
I am not licensed to practice law in Minnesota and accordingly it is important for you to contact a Minnesota attorney for advice specific to your situation. The response above is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. I am licensed to practice law only in the States of California, Washington and District of Columbia.
If you were at fault for causing the accident and you do not have insurance, the other party should file an Uninsured Motorist claim with their own insurance company. Assuming that the victim has insurance, they hopefully should be able to resolve the matter without litigation. If you are served with a lawsuit, you need to hire an attorney immediately.