by ajay2in » Mon Mar 22, 2010 04:51 pm
Hi..I had an accident two years back. I was at fault but the person i hit wan't injured but she still claimed for Bodily Injury. My Insurance company didn't settle the case in last two year and just few days back I received a lawsuit. I called my insurance company and they are saying they will defend me. I just had 15,000 bodily injury coverage. My first question is should i rely on insurance company words that they will defend me and do their best or shall i consult with an attorney. 2) What if the other party don't wanna settle within 15k and asking for 30k? Can they sue me? But I am an immigrant came to US just 2 yrs back and have no asset. I just have a car and some money in my bank account. Please suggest what should i do. We have 35 days to reply to the attorney. I am really stressed. BTW my insurance company is Progressive.
Posted: Mon Mar 22, 2010 05:19 pm Post Subject:
Getting your own attorney or relying on theses is 100% your decision. If you have a million dollars in the bank I'd recommend getting your own attorney. If you have $50, I'd recommend relaying on theirs. Keep in mind an attorney is going to cost a lot of money (easily $5000 - $10,000). You mention that you have no assets. As such I doubt you could afford getting your own attorney.
Question #2... they _are_ suing you. Read the complaint. it has your name on it.
Your attorney, paid for by Progressive, will answer the Complaint an handle the defense. Your carrier will attempt to settle your policy limits or less. If they can't and a judgment is obtained for more then your $15k limit, you'd have a judgement against you for the excess amount. This happens but is very rare.
If this happens then you can find an attorney who will file a Bad Faith claim against your carrier. That is, your complaint against Progressive is that they had the opportunity to settle for your policy limits but did not. As such, you now have this excess judgment against you. Your saying Progressive did not act in good faith.
My recommendation (and I hate to say this) is that you send a _certified_ letter to Progressive asking them to pay your policy limits in order to settle this matter. What you are doing is setting up your Bad Faith claim should there be an excess verdict. Your telling Progressive up front that they need to offer your $15,000 and settle this claim. I'm guessing that they have not as attorneys will usually take policy limits and settle the claim. In that you mention the other person was not hurt (very badly) makes me think that Progressive does not want to offer (has not offered) your policy limits as they think the claim is inflated.
You _NEED_ to send the certified letter as I mentioned.
Posted: Mon Mar 22, 2010 06:07 pm Post Subject: Re:
I just checked with my insurance agent. He informed me that Progressive couldn't settle the case because they didn't receive medical evaluation from the other attorney. He said they cant really force other attorney to send medical document/evaluation. Agent is saying he has everything under control and he will make sure that case gets settled or they will defend me anyhow. He asked me to calm down and wait for couple of weeks. Should i rely on his words?
Posted: Mon Mar 22, 2010 06:54 pm Post Subject:
Agent is saying he has everything under control and he will make sure that case gets settled or they will defend me anyhow.
I'm thinking when you say "agent" that you mean the adjuster handling the claim and not the agent that sold you the policy.Yup, happens all of the time that the attorney files suit without making a prior demand. I'm sure it's done for a number of reasons but for me, I think it's usually done as some attorneys like to fluff up their feathers and out on a good show. Plus, as I understand it, this increase their fee from 33% to 40% plus expenses.
Should i rely on his words?
I think so... this type of thing happens all of the time. Your insurance company will turn it over to a defense attorney that will address this situation. I'd still _HIGHLY_ recommend that you send the letter I mentioned to your carrier. It cannot hurt you in any way and can only help you.Posted: Thu Apr 01, 2010 08:31 pm Post Subject: Hi
Hi..You recommended me to send a certified letter to my insurance company. Can you please provide me a standard format of that letter?
Please tell me Can this letter harm me in anyway? What if they say no to defend my case?
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