An individual is involved in a car accident and is the other

by Blessed » Mon Jun 07, 2010 06:28 pm

An individual is involved in a car accident and is the other driver is found at fault. The individual is covered by his insurance company up to $20K. Now, the victim's car is worth a lot more than 20K, so the victim's insurance company will collect the 20k from the individual's insurance company and then subrogate the difference to cover the cost to replace the victims car.
However, the victim has to also pay for a rental car until this is done and also has some medical bills that will begin as the victim begins physical therapy for back injuries. Question: What are the victim's option for collecting more money to cover injuries and other costs beyond the replacement of the car, which was declared a total lost? Can the victim sue the individual's insurance for more than the 20k, which is all the individual has coverage for? Please advise.

Total Comments: 4

Posted: Mon Jun 07, 2010 07:52 pm Post Subject:

so the victim's insurance company will collect the 20k from the individual's insurance company and then subrogate the difference to cover the cost to replace the victims car.

It does not happen this way. It's possible but this would require the victims insurance company to file suit and win. Which they won't bother with. It would cost them more to win the suit then the difference.

However, the victim has to also pay for a rental car until this is done and also has some medical bills that will begin as the victim begins physical therapy for back injuries.

I doubt the individual has a flat property dmagage/bodily injury limit so these are two different coverages with two different amounts. If the individuals policy is 20/50/20 then they have $20k in coverage for 1 vehicle and another $20k in coverage for 1 person.

Car rental is the some as damage to the victims vehicle... it's all property damage.

In this case the victims insurance is responsible for settling _all_ claims for the policy limits. That is their obligation. So lets say the individuals carrier pays $25k to their insured and their insured also has $1k in rental. The individuals carrier pro-rates their $20k limit and offers each party 76.9% of their out of pocket expenses. In return the victims will be required to sign a release stating that they no longer have any claims against the individuals in return for being paid that amount. If the victims does not want to sign, no money is paid and the victim then needs to file suit against the individual. The individuals carrier will then provide the individual with a defense. I could go on about this... but it's not going to happen. The victims carrier will settle in a heartbeat and I doubt the victim would want to file suit to recover the additional $200 or so. If the victim did, the individuals carrier would still only pay the 76.9% of the loss and the victim would have a nice piece of paper called a judgment against the individual.

If if came to the victim filing suit for the $100, $200 or whatever, the individual could always make a deal to settle for less before the court date. Offer $100 to settle the $200 demand, etc. Its cash in hand... not a judgement (piece of paper).

Posted: Tue Jun 08, 2010 12:29 am Post Subject:

I'd posted an answer to this when it first popped up, and lost my connection but had saved my reply, which I'm posting below, however my esteemed friend has already covered it well, I just didn't want to ditch it after I'd already typed it! :roll: :x

so the victim's insurance company will collect the 20k from the individual's insurance company

yes,

and then subrogate the difference to cover the cost to replace the victims car.

No, not necessarily, actually higly unlikely...The individuals insurance company should not issue one cent without a release from you and your carrier saying (in effect) that they are accepting the policy limits of their insured's PD coverage, and will not pursue their insured. I know this sucks for the victim. But that is their job to protect their insured against an excess judgement. So in other words, this persons carrier should refuse to issue one cent from their policy without a release, which would bar you and your carrier from coming after any more than their 20k limits.

However, the victim has to also pay for a rental car until this is done

If you paid this out of pocket, and do not have rental or, UIMPD (UNDER Insured Motorist Property Damage), then you may be out this money. I know it sucks BAD...Now having said that, all states do not have the same ins laws/regulation. However, if this guys carrier handed over his PD limits without a release and he was sued, he would have a bad faith claim against his own carrier for not protecting him..

and also has some medical bills that will begin as the victim begins physical therapy for back injuries.

Ok, now your BI (bodily injury) claims is TOTALLY different and separate claim from your property damage claim. Your injury claim will be paid under the other partys BI coverage, and that (BI) limit will apply to your injury only...

Can the victim sue the individual's insurance for more than the 20k, which is all the individual has coverage for? Please advise.

Yes, you can always sue, but not if his carrier does their job and secures a release. You could sue (with your carriers permission) for whatever your claim value is lets say 25k, then if you get a judgement his carrier would pay the 20k policy limits then you would have to collect on the judgement yourself, for the balance, and of course your carrier would get their portion first. :wink:

Posted: Tue Jun 08, 2010 02:38 pm Post Subject: insurance

LORI....guess I'm just curious. Have you ever dealt with situtions that people DID sue WITHOUT the permission of their carriers? What happens, in cases like that?

Posted: Tue Jun 08, 2010 04:37 pm Post Subject:

Have you ever dealt with situtions that people DID sue WITHOUT the permission of their carriers? What happens, in cases like that?

Not really, I have handled many claims where there claimants or insureds limits were too low to cover the claim. The thing is if the owner of the vehicle (damaged/not at fault party) choses to use their collision coverage and have their carrier handle the claim, their carrier then has their rights of subrogation. And in every single one I've ever handled the opposing carrier ALWAYS has accepted policy limits and waived further subro (released the claimant).

On the other hand, (and I've only had about three claims in 23yrs like this), the innocent person is so pissed off that they refuse to allow their own carrier to pay. They file suit, and get a judgement, (2 out the 3 times it WAS an excess judgement). Then the claimant carrier pays the owner their limits, and the owner still has this judgement to collect on, (the excess/above policy limit amount). But, in this case, their own carrier was not involved, so of course they were free to do this.

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