The other party hired an attorney against me, please help

by Guest » Fri Aug 29, 2008 10:27 am

Dear all,

I was in a minor fender-bender car accident earlier this year in January 2008. It was a wet and rainy day, when the car in front of me made a sudden stop, I stepped on my break as soon as I saw the front car stepped the break, however, my car still skidded and bumped the rear bumper of the front car.

The damage was minor, the other car's rear bumper was bent, and the grill and hood of my car was a little bent, there were 2 persons on the other car, the driver and another passenger, they came out of their car and we exchanged insurance information. No one was hurt and no police came.

The other driver and myself both reported to our own insurance carriers, and after investigation by adjusters, I was told that I am 100% at fault, I accept that I am at fault, and my insurance company said that they will take care of the rest, I have full coverage and I am in California.

But, last month when I renewed my auto insurance policy, of course my premium went up because of the accident and the fact that I am at fault, but my auto insurance agent also told me that my insurance company alreay paid for the other party's propery damage, but the other party is not willing to settle with the bodily injury part, the other party is claiming that they have neck and back pain and other sufferings due to the accident.

Today, I received a notice from my claim adjuster saying that the other driver and the other passenger has hired an attorney against me for bodily injury and request that I release the limit of my bodily injury liability coverage, what should I do?

Do I have to release the limit of my bodily injury liability coverage to the other driver's attorney?

Will my insurance company release the limit of my bodily injury liability coverage to the other driver's attorney?

I understand that I am at fault, but it was really a minor accident, I thought the case was closed a few months ago, but now the other party got an attorney against me, will I be in big trouble or get myself into an excess judgement?

I recently purchased a house, I am scared that I will lose my properties in an excess judgement?

I am really upset, can someone please help?

Thanks a lot.

Total Comments: 84

Posted: Thu Sep 11, 2008 01:08 pm Post Subject:

Do you know what happens if excess judgements like the two examples you mentioned happened to middle class working families like us who cannot afford that much money?

Well you can't get blood from a turnip...so I suppose there could be a garnishment of wages...most states won't allow the loss of a primary residence...some things are untouchable judgement wise...

The evening news mentioned that someone was killed in a car accident, I was just wondering what will happen to the at fault party? will the at fault party go to jail and get an excess judgement, since life is so precious

It depends on who's at fault and what coverages are available, what exactly happened...they may go to jail if they were drunk....certainly will be a limits case, but again, if there is no other pocket (meaning the owner/driver) most platiff attorneys will advise their clients to take policy limits...some states have UIM (under insured motorist) coverage that may step it...it's hard to say without knowing all the particulars

Posted: Fri Sep 19, 2008 09:56 am Post Subject:

Hi Lori and All,

How are you?

My insurance agent told me today that my insurance carrier will not have an attorney to defend me if the bodily injury claim from the other party and their attorney is over my policy limits. I was so upset to hear this!

I am in CA and my BI limits are 30/60. My agent said that if the other party and their attorney filed a BI claim for $100,000, which is over my limits, then my insurance carrier will pay them to the amount of my policy limits, then if the other party and their attorney wants the other $40,000 which is over my policy limits, then I will have to either pay out of my own pocket or if I don't, then the other party and their attorney will file a suit against me, in this situation, my insurance carrier will not have an attorney to defend me, and I will have to get my own attorney to defend myself from the other party's attorney.

Is this true? I am worried! I remember Lori and others mentioned that if I receive any suit papers, I should get those suit papers to my adjuster as soon as possible, and my insurance carrier will have an attorney to defend me, now I am confused?

Could you please help? Will my insurance carrier get an attorney to defend me? In what kind of situation will my insurance carrier get an attorney to defend me? In what kind of situation my insurance carrier will NOT have an attorney to defend me? Will my insurance carrier still get an attorney to defend me if the bodily injury claim from the other party and their attorney is over my policy limits?
:(

Posted: Fri Sep 19, 2008 10:37 am Post Subject:

First of all make sure you are talking to the ADJUSTER not your AGENT...Agents just don't have the correct training to answer most complicated claims questions...(most of them)..

Your company cannot just hand over your limits without getting a release, thus protecting you from an excess claim...that is part of what you pay your premium for...nor can they release themselves and not you and say, 'ok claimant here's the policy limit, now insured you're on your own'...doesn't work that way...

I've sent Tcope a pm and ask that he please pop in on this thread he does MUCH better job than I explaining the legal and contractual obligation your carrier has regarding limits claims....

Hang tight.

Posted: Fri Sep 19, 2008 12:59 pm Post Subject:

My insurance agent told me today that my insurance carrier will not have an attorney to defend me if the bodily injury claim from the other party and their attorney is over my policy limits. I was so upset to hear this!

First, I'd make sure this was just a customer service person in your agents office and not your agent. If it was your agent, slap them up side the head!

As is true in all of these policies, there _is no limit_ when it comes to the insurance company providing a defense. If they offer up your policy limits, they are not accepted, and suit is still filed, your carrier _will_ provide you an attorney to defend you. No if/ands/buts! Granted, what they would also do in this situation is offer the court your policy limits as the maximum _they_ will pay... but they will still spend what ever is needed to provide you a proper defense (completely separate from your policy limits).

My agent said that if the other party and their attorney filed a BI claim for $100,000, which is over my limits, then my insurance carrier will pay them to the amount of my policy limits, then if the other party and their attorney wants the other $40,000 which is over my policy limits, then I will have to either pay out of my own pocket or if I don't, then the other party and their attorney will file a suit against me, in this situation, my insurance carrier will not have an attorney to defend me, and I will have to get my own attorney to defend myself from the other party's attorney.

Can I also slap this agent in the head?

As Lori mentioned, it does not work that way. Any (ANY) amount paid by your carrier is going to _require_ the other party to _fully_ (FULLY) release you from any further obligation in this matter. If the other party does not want to accept your policy limits, they can file suit against you. Unless you have a few houses and/or a few million in the bank... this just does not happen. Going to court is not free. They other attorney would spend hours, days, weeks preparing for court. He/She is not getting paid for all that time. It's also a roll of the dice. Perhaps they will loose and get nothing. Perhaps they will get $20k or $30k. But lets say they get a judgement for $50k. Now they get the $30k from your insurance company and a lean against you for $20k. Are they ever going to see that $20k? Probably when hell freezes over. In the meantime they have the $30k and probably invested $10k in going to court. Now do you see why they will just take your $30k and walk away? Trust me, attorneys are in this for the quick buck. They don't want to spend any time on this case. They don't want to roll the dice in court. They would rather spend 2 hours on this and walk away with 33% of $30k (nice change, huh).

Could you please help? Will my insurance carrier get an attorney to defend me? In what kind of situation will my insurance carrier get an attorney to defend me?

Yup, if suit is filed they will provide you with an attorney. Up until then, the adjuster will handle the matter.

Will my insurance carrier still get an attorney to defend me if the bodily injury claim from the other party and their attorney is over my policy limits?

Yes, yes, yes. There is no limit on the policy when it comes to providing a defense. Also any defense costs are not deducted from your policy limits.

Just a note:

Thank you for the explanations, I thought the jury would award lower or to the policy limits of the defendant if they knew that an insurance carrier is involved

Technically a jury never knows an insurance company is involved. No one is allowed to mention this. Your insurance company _might_ have someone there but they sit in the gallery just like everyone else. Now, does anyone on that jury not realize that most everyone has insurance? Yes... but they are not told this nor anything about an insurance policy. As far as they should be concerned, you are paying the bill. (sorry, I now see that Lori mentioned this).

Posted: Fri Sep 19, 2008 02:12 pm Post Subject:

Thanks Todd, you always do a way better job of explaining this portion (especially) of the contract than I do...thanks again!

Posted: Sat Sep 20, 2008 09:10 am Post Subject:

Dear Lori and tcope, thank you thank you thank you, words cannot express my greatest appreciations, I feel relieved after reading your replies. Thank you again. May I ask some more questions and also verify some of my concerns?

As is true in all of these policies, there _is no limit_ when it comes to the insurance company providing a defense. If they offer up your policy limits, they are not accepted, and suit is still filed, your carrier _will_ provide you an attorney to defend you. No if/ands/buts!

I would like to know if this is state specific or insurance carrier specific? Or it does not matter which state you are in or which insurance carrier you are with, that no matter what my BI policy limits are, my insurance carrier will always get an attorney to defend me, and No if/ands/buts that my insurance carrier will not get an attorney to defend me, am I right?

As Lori mentioned, it does not work that way. Any (ANY) amount paid by your carrier is going to _require_ the other party to _fully_ (FULLY) release you from any further obligation in this matter.

Does this mean that once the other party signed the release, they can never sue me again, am I right? But does the above release you mentioned only include the BI part? Because I remember my adjuster told me that my insurance carrier did not ask the other party to sign a release for the car damage part, do you know why? Will the other party still sue me for the car damage part?

They don't want to spend any time on this case. They don't want to roll the dice in court. They would rather spend 2 hours on this and walk away with 33% of $30k (nice change, huh).

But the BI part of my case has been pending since January 2008 when this minor fender-bender car accident happened, why would the attorney spend such a long time? It has been 9 months now? My adjuster said that the BI part of my case is still pending and waiting for more medical treatment bills, etc. I am just concerned about what is going on? shouldn't the case be close by now since it has been such a long time? I am worried if the other party and their attorney are planning on something bad against me otherwise what is taking them so long to settle the claim? I really hope that this case could be closed soon and I can move on without having to worry about it all the time.

But lets say they get a judgement for $50k. Now they get the $30k from your insurance company and a lean against you for $20k.

There were 2 people in the car and a dog, and since my BI is 30/60, if they try to get 60k from my insurance, will it be the same as if they try to get 30k like you mentioned in your example above?

Are they ever going to see that $20k? Probably when hell freezes over.

Does this mean if there is an excess judgment against me, I don't have to pay for it?

Granted, what they would also do in this situation is offer the court your policy limits as the maximum _they_ will pay...

Sorry, I am a bit confused with this part? If a jury should not know that an insurance carrier is involved, but on the other hand, my insurance carrier “offer the court your policy limits as the maximum _they_ will pay...”, then the jury will know that my insurance carrier is involved, right? Sorry if I misunderstood this part.

May I double confirm again that no matter what my BI policy limits are, my insurance carrier will always get an attorney to defend me, and there are No ifs/and/buts that my insurance carrier will not get an attorney to defend me, am I right?

And does it also mean that no matter what the situation is (i.e. the other party and their attorney ends up asking for more than my BI policy limits, or unwilling to settle with what my insurance carrier is willing to pay, or probably many other situations), if the other party and their attorney file a suit against me, my insurance carrier will get an attorney to defend me no matter what kind of reason the other party is suing me, am I right?

Thank you so much Lori and tcope, I feel so relieved, I really appreciate your kindness and time in helping us, thank you indeed…………………….

Posted: Sat Sep 20, 2008 10:27 am Post Subject:

I would like to know if this is state specific or insurance carrier specific?

As far as we know (feel confident in speaking for T on this) ALL policy's ALL companys, ALL states same thing...they WILL defend you...(or be looking at a unfair claims practice suit)...

Does this mean that once the other party signed the release, they can never sue me again, am I right?

Yes that is what that means...you are 'released' from further claims....There is rarely if ever a release on PD (vehicle damage) in over 20 years think I've used three or four...you don't have a limits problem with the vehicle repair...no release and no worry's there...if something else comes up with their vehicle your carrier will handle it you'll never know about it.. most likely

...shouldn't the case be close by now since it has been such a long time?

Nine months isn't long at all...some drag on for years...most folks, (rightfully so) don't want to settle until they have finished treatment etc....lengh of time isn't really a worry...

There were 2 people in the car and a dog, and since my BI is 30/60, if they try to get 60k from my insurance, will it be the same as if they try to get 30k like you mentioned in your example above?

ARe they all hurt? what those limits mean are 30k per person MAX per accident, and 60k per accident MAX all injurys combined...no one person can get more than 30k no one accident can pay out more than 60k...for instance if there were 6 people in the car they all died...10k each is the most they could get..

Does this mean if there is an excess judgment against me, I don't have to pay for it?

It means what are the odds you will be able to pay it other than say 50 bucks a month for ever? Most attorneys don't want to wait that long for their money...or run the gamble of not getting close to policy limits in trial.

"court" is the judge not the jury....

May I double confirm again that no matter what my BI policy limits are, my insurance carrier will always get an attorney to defend me, and there are No ifs/and/buts that my insurance carrier will not get an attorney to defend me, am I right

Hopefully Todd will comment as well...YES they will defend you...I've never seen a case when they did not..

And does it also mean that no matter what the situation is (i.e. the other party and their attorney ends up asking for more than my BI policy limits, or unwilling to settle with what my insurance carrier is willing to pay, or probably many other situations), if the other party and their attorney file a suit against me, my insurance carrier will get an attorney to defend me no matter what kind of reason the other party is suing me, am I right

yes yes yes yes yes in your case...the only reason they can sue you is the value of the claim...your company cannot throw you under the bus by paying policy limits WITHOUT a relase...and if there is a release they cannot sue you....

Thank you so much Lori and tcope, I feel so relieved, I really appreciate your kindness and time in helping us, thank you indeed…………………….

You are welcome and thanks again to T for popping in and explaining much better than I do....

You didn't tell us who EXACTLY told you your carrier would not defend you?

Posted: Sat Sep 20, 2008 01:43 pm Post Subject:

Tcope, just curious, what she can expect in the judgement?

There is no way I can know... I don't know much about the situation, injuries, or CA. But there is no indication that this will go to trial. That is the only place one can obtain a judgement.

Posted: Tue Sep 23, 2008 09:47 am Post Subject:

Nine months isn't long at all...some drag on for years...most folks, (rightfully so) don't want to settle until they have finished treatment etc....lengh of time isn't really a worry...

Trust me, attorneys are in this for the quick buck. They don't want to spend any time on this case. They don't want to roll the dice in court. They would rather spend 2 hours on this and walk away with 33% of $30k (nice change, huh).

Lori mentioned that Nine months isn't long at all, but tcope also mentioned that attorneys are in this for the quick buck and get fast money, isn't nine months too long for an attorney to get their quick buck? I am worried if the other party and their attorney are planning on something bad against me that is why it is taking so long??? :?

No one was hurt from what I have seen, my car only skidded and bumped the rear bumper of the other car. I took photo of my car and the other car at the accident scene.

Sorry, could you please explain this part again, I don't quite understand? How does the court decide how much you have to pay for excess judgments?

"court" is the judge not the jury....

Does this mean that the “court” will know and have different information then the jury? And the “court” will not let the jury know that the “court” knows that my policy limits are the maximum my insurance carrier will pay?

...your company cannot throw you under the bus by paying policy limits WITHOUT a relase...and if there is a release they cannot sue you....

Does this mean that suits happen before a release is signed because the other party and their attorney are not willing to settle the claim, thus will not sign the release, thus a suit is then filed?

You didn't tell us who EXACTLY told you your carrier would not defend you?

Sorry, it was my agent, I called up regarding some issues on my premium, and my agent told me this, and it does not sound like what I have learned from this helpful forum, so I asked my agent several times to verify if it was true during the same conversation, but my agent seems so confident about it, and that is how I got so upset after the conversation. But thank you and tcope very much for helping, I feel relieved…………….

Do you know why my case is not closed yet but my premium has already gone up? I thought your premium goes up after your case is closed? After the BI settlement and my case finally get to close, will my premium get raised again? How long will my premium get raised?

Thank you very much once again for your support on this forum. :D

Posted: Tue Sep 23, 2008 10:39 am Post Subject:

Sorry, could you please explain this part again, I don't quite understand? How does the court decide how much you have to pay for excess judgments?

''IF'' you would go to court and there were a trial then yes, the judge or jury would decide the value of tohe injury could be less than the limits..could be a dollar...could be a million..

nine months isn't long...could be the attorney just got this...do we know when the attorney got his/her rep. contract signed?

No one was hurt from what I have seen, my car only skidded and bumped the rear bumper of the other car. I took photo of my car and the other car at the accident scene.

This is more than likely a little soft tissue claim..did your adjuster take photos of your vehicle as well? if not call her and tell her you have them...this isn't going to be a limits claim from what you've said...when was the last time you talked to your adjuster? call her see if only is injure dor all...and how the negotiations are coming along..

Sorry, could you please explain this part again, I don't quite understand? How does the court decide how much you have to pay for excess judgments?

They don't decide 'excess'' judgements they make judgements period..if it went to court the judge or jury (whichever) would decide the value and how much you owe the other party...

Kind of, a judge will have an idea insurance is involved...doubt he will know the limits either...if it's a jury trial he might know all the facts...of course he/she wouldn't tell the jury.

Does this mean that suits happen before a release is signed because the other party and their attorney are not willing to settle the claim, thus will not sign the release, thus a suit is then filed?

"IF" if the other party will not settle prior to a trial...yes...but that honey ain't very likely... :wink: it means your carrier cannot hand over your policy limits without getting a release...

Sorry, it was my agent

Just as I thought..your agent needs to be slapped upside the head... :roll: :evil: that kind of stuff realllllllllllly ticks me off...

Do you know why my case is not closed yet but my premium has already gone up? I thought your premium goes up after your case is closed? After the BI settlement and my case finally get to close, will my premium get raised again? How long will my premium get raised

your premium may have went up due to an across the board company wide increase, or for the property damage payment that has already been paid...no in most company's it shouldn't go up again....most carriers have a number say 500 if that is paid or more the premium goes up...THIS is a question for your agent... :wink: one hopefully he/she is equiped to answer correctly.

Call your adjuster honey and check on how your claim is progressing.

The other party hired an attorney against me, please help

Total Comments: 84

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