Money judgment: Can someone get one against me?

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Wed Mar 05, 2008 2:03 am   Post subject: Money judgment: Can someone get one against me?  

Dear all, nice to have found this forum.



I have a serious question that I need your advise.



I was involved in a car accident recently and there were severe damage on my car and the other driver's car, the other driver also reported severe personal injury to both my insurance company and their own insurance company. I am thinking at I may be at-fault, but need to wait for adjuster's final investigation.



I have full insurance coverage, my liability coverage for personal injury is 30000 per person and 60000 per accident and my liability coverage for car damage is 25000.



But the other driver hired a lawyer saying that my liability coverage for both personal injury and car damage will not be enough, I think they are planning to sue me and ask for a lot of money, I am worried if they could get a money judgment against me and execute against my property, I have bank accounts, salaries, and a house under my name and my title, will they be able to get additional money from me by execute against my bank accounts, salaries, my house?



Thank you.


_________________
Register Now to have your Insurance queries solved.
Linda1
Guest







PostPosted: Wed Mar 05, 2008 6:14 am   Post subject:   

Dear Linda,



This is exactly the situation of a ball-by-ball game watch!

You need to be patient (though I know that its not that easy under the present circumstances).

The first thing that you should do is to seek the help of your carrier & ask them to guide you under the circumstances. Also, don't forget to keep us informed about each step that the other party undertakes. I'd be eagerly waiting whether the verdict goes against you as the party-at-fault!



Keep us fed regarding the money judgment proceedings if any..Plasticmind


_________________
Register Now to have your Insurance queries solved.
Plasticmind
Guest







PostPosted: Wed Mar 05, 2008 6:55 am   Post subject:   

Quote:
I have full insurance coverage, my liability coverage for personal injury is 30000 per person and 60000 per accident and my liability coverage for car damage is 25000.


See, I believe if he has maintained a comprehensive cov. then his carrier should be the one he ought to be looking for his compensation. On the otherhand, if he has maintained any Uninsured/underinsured motorist coverage, that should come into play after the maximum value for your policy is achieved by him eg.



Suppose his total damage for his car is worth $50,000. So, he would achieve $25,000 from your policy benefits & the rest $(50,000 - 25,000)= $25,000 could be revived through his UMI. Am I right?



Regards, Plasmahectic

_________________
Register Now to have your Insurance queries solved.
Plasmahectic
Guest







PostPosted: Wed Mar 05, 2008 6:58 am   Post subject:   

Hi Linda...I do understand your concerns regarding your bank accounts, your home & other personal assets..but you need to hold on for some time..rest assured that in today's world the insurance carriers are too clever to let money spill out. According to them NO-ONE is 100% AT-FAULT!!!

Wish, that explains the the rest to follow!

RomaC


_________________
Register Now to have your Insurance queries solved.
RomaC
Guest







PostPosted: Wed Mar 05, 2008 7:15 am   Post subject: Getting money judgment is not easy  

Lemme assure you first that getting a money judgment against someone isn't that easy. Hence, I agree with the other poster that you need to be a patient watcher of the game. You should consult both your insurer and an attorney to decide the future course of action. Its the insurance company's responsibility to protect the interest of their client. Otherwise, they can face the bad faith action from you.



You haven't mentioned what your insurance company has agreed to pay. Its a very important information that's missing in the post. However, lemme conclude by saying that turn the lawsuit immediately to your insurer. You have insurance on your car and your insurer is responsible to cover you fully through the lawsuit and obtain the release form all the liability certificate for you.



Is UIM coverage a requirement in your state?



Do keep us informed and wait for more responses. Good luck!


_________________
Register Now to have your Insurance queries solved.
Amazon-hunter
Guest







PostPosted: Wed Mar 05, 2008 11:24 am   Post subject: Money judgment: Can someone get one against me?  

Good morning Linda and welcome...I certainly understand your fear about money judgment and other things...but ''maybe'' everything is going to be ok...The one tip off that makes me think that 'possibly' the other party has UIM (UNDER insured motorist) is that you say their atty maintains your limits are too low..Also attorneys ALWAYS over exaggerate a claim, just because they 'say' you don't have high enough limits does not make it so.



Let's start there, first as soon as you can raise your own limits because they are too low...yes it is possible for someone to get an 'excess' judgment and come after your property, easy now girl...it rarely happens...especially if there is UIM on the other side. It is your carriers duty to settle the claims against you 'within' your limits....more than likely what will happen is just that your carrier will secure releases under your PD and BI coverages for the coverage limits then the other party will go to their carrier for their own UIM limits....



First the investigation needs to be completed and liablity determined...Couple of questions, what state are you in? what type of vehicle was this other party driving (25k is a 'decent' amount of PD coverage) what were the fact of loss? What is your carrier saying re: liablity, and limits? How does the other party know what your limits are? Answer these and we will be able to be of more assistance....



Also

Quote:
Am I right?
no Plasmahectic, you are not...first
Quote:
I believe if he has maintained a comprehensive cov. then his carrier should be the one he ought to be looking for his compensation
It would be 'collision'' coverage not comprehensive that would cover the vehicle....and the UIM only (not UM) would cover the injury if it is indeed a limits issue.


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Wed Mar 05, 2008 10:24 pm   Post subject:   

In addition to what Lori mentioned, please keep in mind that your carrier won't pay _anything_ out of court unless the other party agrees to accept that amount and not pursue the claim any further. Also, a plaintiff attorney's time is money. The more time they spend on a case, the less they make. A money judgment is not worth a whole lot and the attorney would probably never be able to collect on it. So what good is it to the attorney to spend weeks and several _thousands_ of dollars just to get a lien? 99.999999% of the time they will simply take 1/3 of the $30k and move on. But this is even assuming that this _is_ a policy limits case. As Lori mentioned, I've never seen attorneys ask for less then 10 x to 100x what a claim should settle for in their initial demand. It's just their way of playing a game (they are required to make the 1st demand, which puts them at a disadvantage... so they simply ask for the sky. Why would they ask for something less. Think about that). So of course the plaintiff attorney is going to tell everyone that it's a limits case... it's just posturing.



If the other person owns a vehicle worth $25k then they probably have a lien and if so, have collision insurance. Most people with a $25k vehicle will have collision insurance even if they don't have a lien. As such, they can simply file their property damage claim under their own policy and they will then simply transfer their right of recovery for that damage to their carrier... who won't file suit.

tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 6175

Location: Salt Lake City, UT
375.37 Dollars($)

PostPosted: Thu Mar 06, 2008 2:01 am   Post subject:   

Dear all, thanks a lot for answering my money judgment query.



from Amazon-hunter,

Quote:
You should consult both your insurer and an attorney to decide the future course of action




Will my insurance company protect me with the insurance company's lawyer or do I also need to get my own lawyer, I don't think I can afford a lawyer myself?



from Lori,

Quote:
The one tip off that makes me think that 'possibly' the other party has UIM (UNDER insured motorist) is that you say their atty maintains your limits are too low


How can I know if the other party has UIM? Who should I ask?

Quote:
Let's start there, first as soon as you can raise your own limits because they are too low


Could you please advise a more proper limits that I should have for my own auto insurance?



Quote:
easy now girl...it rarely happens...especially if there is UIM on the other side. It is your carriers duty to settle the claims against you 'within' your limits....more than likely what will happen is just that your carrier will secure releases under your PD and BI coverages for the coverage limits then the other party will go to their carrier for their own UIM limits....



Sorry, I am a little confused here, if my carrier could settle the claims against me "within" my limits, but if the other party go to their carrier for ther own UIM limits, will the other party's carrier subro against me later on, if the other party's subro against me later on, but my carrier has already used up my limits, then will the other party be able to subro against my properties and assets?

and worse things is that if the other party does not have UIM, what will happen? will the other party and their lawyer come after my property and assets then?



Quote:
Couple of questions, what state are you in? what type of vehicle was this other party driving (25k is a 'decent' amount of PD coverage) what were the fact of loss? What is your carrier saying re: liablity, and limits? How does the other party know what your limits are? Answer these and we will be able to be of more assistance....



I am in California, the other party is a lexus, the loss of the other car seems severe to me, because it was a change line issue and both of us was driving in high speed on the freeway so the impact was severe. my adjuster just said that they will investigate more, as to how the other party know what my limits are, I am concerned myself as well, I really don't know how they got my information?



from tcope,

Quote:
As such, they can simply file their property damage claim under their own policy and they will then simply transfer their right of recovery for that damage to their carrier... who won't file suit.


like my previous concern, if the other party file their property damage claim under their own collision coverage, will the other party's carrier subro against me later on, if the other party's subro against me later on, but my carrier has already used up my limits, then will the other party be able to subro against my properties and assets?



I heard that I could also add Umbrella Liability insurance on top of my auto liability insurance for extra protection, can I still add it now, or it is already too late? and if I could still add the Umbrella Liability insurance, is it recommended that I do so?



Also, I have homeowners liability insurance on my homeowners insurance, will my homeowners liability insurance protect my home if the other party finally got lawsuit judgment to execute against my home?



I also heard that there are some ways for asset protection such as transfer your home, bank accounts, etc. into a living trust, Limited Liability Company, and/or Family Limited Partnership, is it recommended that I do so or since I already have a claim against me, it is already too late for me to do anything to protect my property and assets?



Thanks a lot. Sad

_________________
Register Now to have your Insurance queries solved.
#Linda
Guest







PostPosted: Thu Mar 06, 2008 3:05 am   Post subject:   

Quote:
Sorry, I am a little confused here, if my carrier could settle the claims against me "within" my limits, but if the other party go to their carrier for ther own UIM limits, will the other party's carrier subro against me later on, if the other party's subro against me later on, but my carrier has already used up my limits, then will the other party be able to subro against my properties and assets?
GREAT question! In order for your carrier to pay your BI limits, they would require the other person's carrier to submit a waiver of recovery. That is, they agree not to pursue recovery of any amount they pay under their UMBI coverage. Usually the UMBI carrier will simply run an assets check on you and unless they find out you have a few houses or a million in the bank, will complete the waiver.



Quote:
like my previous concern, if the other party file their property damage claim under their own collision coverage, will the other party's carrier subro against me later on, if the other party's subro against me later on, but my carrier has already used up my limits, then will the other party be able to subro against my properties and assets?
Nope... and situation. Your carrier will offer your limits and they other carrier will need to sign a property damage release in order to collect them. That release means they agree to settle for the money your carrier is paying. It would cost the other carrier more money to try to collect anything from you. Better that they just accept the large $25k payment from your carrier and move on. It's a business decision for them.



Quote:
I heard that I could also add Umbrella Liability insurance on top of my auto liability insurance for extra protection, can I still add it now, or it is already too late? and if I could still add the Umbrella Liability insurance, is it recommended that I do so?
It would not apply to this situation. Do you have a million dollars in assets to protect? It's unlikely that you have enough assets that anyone would want to forgo collecting the money from your carrier to pursue. If anything, you might want to consider raising the liability limits of your auto policy. It would be fairly inexpensive as higher limits don't get much more expensive.



Quote:
Also, I have homeowners liability insurance on my homeowners insurance, will my homeowners liability insurance protect my home if the other party finally got lawsuit judgment to execute against my home?
No, two completely different animals.
tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 6175

Location: Salt Lake City, UT
375.37 Dollars($)

PostPosted: Thu Mar 06, 2008 11:35 am   Post subject:   

tcope has answered your questions except the limits one....as you see now 25k Property Damage is not high enough...I personally carry 100k, most could be by with 50k...think of it this way, what if for some reason, you hit one car, sending it into a house? All your fault? You cause 60k in damage? See my point? (actually you see the point in your own claim if the other vehicle damage is over 25k)...same with your BI limits...they (in my opinion) are way too low, 30k per person and 60k per accident is just not enough not given what medical costs are today and jury awards! Rolling Eyes I would carry a min. off 100/300k....again with my scenrio of you hitting a car that then goes into a house, lets say there are six people in that car and all are hurt! The way your policy sets now you have to divide that 60k between them meaning 10k each! Not even close to the protection you need.



Please feel free to ask any questions as you go thru this process...do not attempt to hide your assets it rarely ever comes to anything like you are fearing (an excess judgement) unless as tcope said, you are a 'ga-zillionaire' or something.... Wink



Also since you said it is a lane change issue, could be that you will not be held 100% at fault either! Smile Please let us know how you are doing and the liabilitly determination, try to not get too worried your carrier is there to take care of and protect you from any such money judgment ...oh yes, your carrier (if need should arise) would hire/pay an attorney to defend you...



_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Thu Mar 06, 2008 10:26 pm   Post subject:   

I did not answer the limits question as there is no way to give a good answer, IMHO. I have a friend who does not have a pot to piss in. He carries the minimum limits (10k PD). If he's involved in a $20k PD accident, what is the other party going to do? I'm not trying to sound mean or recommend lower limits but liability limits are meant to protect the insured... not the people who suffered the loss. If the states thought those people should be protected then they should raise the minimum limits (and I think most states should).



So, if I rent an apartment, drive a 1989 Kia and live paycheck to paycheck, should I have 100k limits? Perhaps not. Each person needs to figure that out for themselves.



It's also another good reason to have collision and UMBI Smile



BTW - my friend is actually doing much better for himself now. Smile

tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 6175

Location: Salt Lake City, UT
375.37 Dollars($)

PostPosted: Fri Mar 07, 2008 11:12 am   Post subject:   

Quote:
I did not answer the limits question as there is no way to give a good answer, IMHO. I have a friend who does not have a pot to piss in. He carries the minimum limits (10k PD). If he's involved in a $20k PD accident, what is the other party going to do? I'm not trying to sound mean or recommend lower limits but liability limits are meant to protect the insured... not the people who suffered the loss. If the states thought those people should be protected then they should raise the minimum limits (and I think most states should).
I guess if a person choses to risk a portion of the future paychecks that's certainly their right, once they know the facts...to me, I'm not going to hang my hat or hopes on the fact that an insurance company may not hire a collection agency to get a judgement (that they are entitled to) and garnish my wages for the rest of my life no matter how meger those wages are....The company I used to work for (I started as a subro specialist in 1987)....we routinely did this on ALL subro claims, why? because it didn't cost us anything really...the collection agency took a percentage, and their philosophy was 50 cents on a dollar was still 50 cents......it's a personal choice and as I said, I wouldn't trust that they would automatically right off the loss....I do agree with you that most (if not all) state limits are WAY WAY too low...


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Fri Mar 07, 2008 11:45 am   Post subject:   

Dear All, thanks a lot for helping and sharing your expertise.



Is there a way that I could know if the other driver has UIM and/or collision coverage?



I am just an average working person with average paycheck and average savings in bank accounts and retirement accounts, but I am most worried about my house, actually the house was my parents', but they transferred the title to my name only, the house itself is over a million in value, but that was everything my parents' saved over their life, plus since I am in California, the value of the house has raised quite a bit in California, I am really worried that the other party's lawyer could get a money judgment against me and execute against my house, I really want to protect my parents' hard savings over their life.



With this kind of situation, is asset protection such as transferring my home, bank accounts, etc. into a living trust, Limited Liability Company, and/or Family Limited Partnership recommended? But since I already have a claim against me, it is already too late for me to do anything to protect my property and assets?



In your professional experiences, have you actually seen anyone lost their home and/or assets due to car accidents lawsuits or excess judgments?



I heard from some friends saying that those lawyers have a very high success rate in winning these kind of excess judgment lawsuits? is that true? I am worried.



I am a little confused with the difference between adding an Umbrella Liability insurance on top of my auto liability insurance for extra protection and just raising the liability limits of my auto policy? Which one is better and provides better protection? which one do you recommend?



can I still add Umbrella liability insurance or raise my auto policy liability limits now? or it is already too late since I have a claim pending investigation?



If it is already too late for me to either add Umbrella liability insurance or raise my auto policy liability limits now, when will I be able to do so?



How much more does it usually cost to add Umbrella liability insurance or raise my auto policy liability limits to like Lori recommended 100k/300/100k?



Although tcope mentioned that



Quote:
It would be fairly inexpensive as higher limits don't get much more expensive.





But I was thinking, since my premium will go up anyways if I am at-fault, adding Umbrella liability insurance or raise my auto policy liability limits will likely to add even more to my premium, maybe to an extent that is too expensive for me, I am not really sure if I am right, please advise?



Best, Linda

_________________
Register Now to have your Insurance queries solved.
#Linda
Guest







PostPosted: Fri Mar 07, 2008 12:29 pm   Post subject:   

Your state only requires 15/30 BI and 5k PD limits...no UM or UIM are required...Don't know how you would 'find' out if they have UIM....Your adjuster might be able to get this information, I don't know what the rules or regulations are regarding your states limits/coverage disclosure....I would bet they have collision coverage...do you know the year/make/model of the vehicle? See, there are quite a few things that we must understand before we talk about money judgment.

Quote:
But since I already have a claim against me, it is already too late for me to do anything to protect my property and assets?
It would be too late if this were an option on this claim...it would go to the ownership on the date of loss..I really don't think you are going to have to worry about it though..What EXACTLY do you know about the damages to the vehicle and injuries? How much (monetarily) damage is there to the car? What are the injuries claimed? Was there only one person in the car? What did the police report say?
Quote:
In your professional experiences, have you actually seen anyone lost their home and/or assets due to car accidents lawsuits or excess judgments?
No I have not never not one time...I have seen excess judgements and garnishments...but never seen anyone lose their homes etc..(been at this since 1987)...
Quote:
I heard from some friends saying that those lawyers have a very high success rate in winning these kind of excess judgment lawsuits? is that true? I am worried.
I know you're worried try hard not to be...you have every reason to be a little worried, but remember you company's job is to settle these claims 'within' your limits...they won't pay a nickel unless they can get a release signed which protects you from an excess judgement...in other words (in all cases I've been involved with)...your carrier would force the other party to file suit, rather than just had over your limits without a release...most claimants will accept policy limits and get on with their lives...you have to remember too that your carrier doesn't want you to file suit against them for bad faith if they don't protect you...let me explain...if your carrier just went, 'ok here's our limits have a good day....'

(no release) thus opening you up to an excess judgement then you would have a lawsuit against your own carrier for not protecting you and doing all they could to gain a release...see? re: your quote, I don't know the stats on success rates, but I'd bet this isn't correct, because they are not filed that often.....unless there is another 'deep pocket' somewhere...that a claimant attorney needs that judgement to get into....Let's not forget we don't know A) if you will be found 100% liable for the accident, or B) if it's even an excess claim right?

Quote:
can I still add Umbrella liability insurance or raise my auto policy liability limits now? or it is already too late since I have a claim pending investigation?
You can but it will not have any affect on this claim at all...it will only benefit you (maybe) from the date you add/change your limits...it's not retro...you can change your limits buy a policy etc...any time you want...just won't have any bearing on this claim at hand.
Quote:
How much more does it usually cost to add Umbrella liability insurance or raise my auto policy liability limits to like Lori recommended 100k/300/100k?
I really don't know there are too many variables you'll need to talk to your agent/company about that....there is no way for us to know this...just call and ask how much will my premium increase if I raise these limits to 50/50/100, and 100/100/300k, to get an idea...I really don't have much experience at all with the umbrellas, and am not positive that they can come into play on an auto claim...(i kind of think they don't) hopefully another with more experience with those types of claims will weigh in.
Quote:
But I was thinking, since my premium will go up anyways if I am at-fault, adding Umbrella liability insurance or raise my auto policy liability limits will likely to add even more to my premium, maybe to an extent that is too expensive for me, I am not really sure if I am right, please advise?
Well more than likely your rates will increase anyway if you are at fault, the extent? I don't know (another question for your agent) couple of things, first they cannot raise them till your renewal...then also what is your collision and comp deductible? The higher the deductible the less the premium so if you are carrying low deducts then you might look at raising them to help off set the increase...



Linda, if you'd like tell us what exactly happened in the accident, we may be able to put some of your fears at rest....have you heard from your adjuster?



We're here for any questions....please try hard not to worry too much until you know you have something to worry about! Wink (i know easier said than done) Rolling Eyes


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Sat Mar 08, 2008 7:45 am   Post subject:   

Quote:
I guess if a person choses to risk a portion of the future paychecks that's certainly their right, once they know the facts
But baring a money judgment, the adverse carrier would not see a dime from the OP's carrier. What would you do... take $10k on a $20k loss or roll the dice that you _might_ be able to collect all the money from the OP? How much would it cost you to possibly collect this money over the period of 5 or 10 years? Also, I don't know of any state where an insurance company can garnish wages. About the best they can hope for is a suspension of the person's DL.



I'm not saying it's fine to have low limits... only that there are other things to consider.
tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 6175

Location: Salt Lake City, UT
375.37 Dollars($)

Quick Reply
Your Name
Subject
Message body
All times are GMT
1, 2, 3  Next  
Page 1 of 3


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 0.336 seconds.