Not covered by insurance? minor accident 2yrs ago wants $16K

by Guest » Mon Apr 01, 2013 10:36 pm
Guest

Just under 2 years ago (~23 months), I was involved in a minor car accident with my stepdad's car, in which I was at fault (rear-ended someone). Their SUV barely had a scratch, but my car, being lower to the ground than his, dealt more damage. Since I was a very infrequent driver, and didn't even live at home, I was never put on my stepdad's insurance (I was 18 at the time, and this would have been very expensive, considering I seldom borrowed the car [and again, i did not live at home]). Police did arrive on scene since they were stationed across the street, but no report was filed. After the accident, I received a letter from the other party's insurance claiming ~$3,000. My stepdads insurance later denied the claim saying that because I had residence in his house, I had to be on the insurance to be covered. [Unfortunately I never changed the address with the DMV, but I did have copies of my apartment lease]. We weren't sure what to do, but since we didn't hear anything from either the other driver or the insurance, we assumed the insurance just filed it as an uninsured motorist and it being such a small claim, gave up on it. Just under 2 years later, I get a letter from his insurance claiming ~$16,000.
Here is his car:

tinypic.com/r/116qdxz/6
tinypic.com/r/219w8pc/6

I am a full time college student on work-study, making around $350/month with no assets. Tuition and my medication already sucks up all of mine and my parent's money as it is. I already have student loans, and am expecting to have a whole lot more loans if/when I make it to grad school. I don't know what I am supposed to do in a situation like this. I am in the process of gathering every shred of evidence I possibly can to prove that I did not live at home at the time of the accident [the copy of the lease, which was under my name (although that wasnt enough last time?) every statement from the gas/electric company in my name and proof of service, bank statements with my address on it, and even a credit card application and a letter from my college]. With all this evidence and a denied claim, I am thinking of filling an appeal. But if the lease itself wasn't enough last time, I don't know if this will make a difference.
I am worried about being sued by either the guy or his insurance. 16,000$ is an absurd amount given his car suffered virtually no damage. Everyone in the car was fine after the accident, so unless he filed some fraudulent personal injury claim, idk what accounts for this amount.
I have thought about approaching my stepdads insurance with a lawyer, but that'd be costly so I dont want to do it unless I have a good shot.
What can happen out of this? If I'm sued, will a judge really make me pay 16,000$? Considering I was the driver and I'm obviously broke, will they probably just drop it, given the silly scope of damage?
Any advice or thoughts would be greatly appreciated. Please and thank you!]

Total Comments: 2

Posted: Mon Apr 01, 2013 10:43 pm Post Subject:

if this means anything, the accident happened in California

Posted: Tue Apr 02, 2013 05:03 pm Post Subject:

It means everything that this happened in California. There is a three year statute of limitations in which to assert a claim such as this.

Apparently the injured party filed a claim under their uninsured motorist coverage and now the insurance company is finally getting around to subrogating the claim. If you were genuinely NOT a resident of the household, but merely a guest for a limited duration, then the insurance on the vehicle should have applied to the claim.

Respond to the insurance company by saying that you disagree with the amount of the loss, and that you believe the other insurance company has liability to pay whatever loss did occur.

Let the insurance sue you, and then file the claim again with your stepfather's insurance company, demanding a defense. When they refuse, you'll need to hire an attorney and file a cross-complaint against your stepfather's insurance company for failure to provide a defense.

It's a bit complicated, but if you can genuinely prove that you had a full time residence elsewhere at the time, even though you failed to change the address on your driver license as required by law, you should not have been denied coverage under your stepfather's policy.

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