Help!-accident insurance problem

[stracci2000]

I need some advice from my fellow PSers.
I know very little about insurance, so I need help understanding this. I am upset and feel sick right now!

Two years ago I was responsible for a fender bender with an older couple. The lady said "my neck feels funny" and the ambulance took her away. There was minimal damage to their fender, and my insurance paid out 1600.00 to them.
I hadn't heard anything more. I thought that was the last of it.
(I no longer have insurance with this company. I switched a while ago.)

Today the insurance agent called and said that the claim had been re-opened.
He suspected that the man or his wife probably went to the doctor with a complaint that they are claiming was caused by this accident. Maybe the lady had her neck treated. Who knows.
The agent says that they are probably seeking the maximum amount that my policy carried at the time ($25,000), and this is typical.
He said they would review everything and let me know what transpires.
He says I probably don't have anything to worry about. But of course I'm worried!

So my burning question is:
Can they sue me personally if the claim is for more than 25,000?
Or am I protected because I had insurance?
If the insurance company wont pay any more, can they sue me personally?

I am pretty nervous right now, so I need to hear something positive. Should I be worried?

 

[Bron357]

I’m in Australia, it works differently here.
I would speak to an appropriately qualified lawyer now.
This will put your mind at ease. It may be absolutely nothing to worry about, but if it is something that needs more effort to manage, the sooner you get approprately experienced people representing you the better.

 

[YadaYadaYada]

Okay first, deep breath, it will be okay.

I used to be a licensed agent, my license expired years ago but part of what I did was submit claims so take this as coming from experience but not a (currently) licensed professional.

Now, they are suing you for injuries which would fall under your bodily injury limits on your auto policy. The least you can carry by state law in CT is $20,000 my guess is that your limits are higher, we would typically recommend at least $50,000/$100,000 for a renter and a minimum of $100,000/$300,000 if you owned a home. So your first thing is to check your BI limits on your policy, if indeed your limits were $25,000/$50,000 then they are simply suing for the maximum they can which is typical but the insurance company will typically settle for a lesser amount.

You would have reason for concern if they were suing for more than you are insured for. The amount paid prior for their property damage to their car would be covered under your property damage limit on your auto policy.

This unfortunately is what people do, they find out they can get money and claim back and neck injuries which are hard to prove and that's why they do it. I have been sued and my insurance company settled, she also claimed back and neck, it's easy money for them.

 

[stracci2000]

Okay first, deep breath, it will be okay.

I used to be a licensed agent, my license expired years ago but part of what I did was submit claims so take this as coming from experience but not a (currently) licensed professional.

Now, they are suing you for injuries which would fall under your bodily injury limits on your auto policy. The least you can carry by state law in CT is $20,000 my guess is that your limits are higher, we would typically recommend at least $50,000/$100,000 for a renter and a minimum of $100,000/$300,000 if you owned a home. So your first thing is to check your BI limits on your policy, if indeed your limits were $25,000/$50,000 then they are simply suing for the maximum they can which is typical but the insurance company will typically settle for a lesser amount.

You would have reason for concern if they were suing for more than you are insured for. The amount paid prior for their property damage to their car would be covered under your property damage limit on your auto policy.

This unfortunately is what people do, they find out they can get money and claim back and neck injuries which are hard to prove and that's why they do it. I have been sued and my insurance company settled, she also claimed back and neck, it's easy money for them.

Thanks for your reply Stephanie. Yes, I had 25,000/50,000.
Because they accepted the 1600.00 payment, doesn't that mean that releases the at-fault party(me) from further liability?

And if they do try to get more money, do neck complaints cost more than 25,000?
If the insurance wont give them what they want, can they sue me anyway?
Do I need a lawyer? I'm a nervous wreck right now.

 

[YadaYadaYada]

They have three years to file a claim for injuries so even though they paid for the property damage that doesn't restrict them from claiming injuries. The only way they couldn't claim for injuries would be if they signed a release of liability which they most likely didn't if your agent didn't mention it.

If they are suing you for $25,000 it is my understanding from an insurance standpoint that is the most they could get, they will most likely take less but they go for the maximum of course. At the point of reaching a settlement with your insurance company they will sign an agreement that prevents them from suing you in the future. I'm telling you, they are just looking for a payday and then they will go away.

If you happen to be insured with Statefarm or Allstate I have heard great things about them going to bat for their customers, and mind you the insurance companies have lawyers that work for them so policyholders don't typically get their own attorney but you can. If it was me I wouldn't worry until your agent tells you to worry. This is just very common, that's no comfort when it's you but it happens a lot.

I'm sure none of this will ease your anxiety because I have been there but this is what you have insurance for. One thing, if you own a home I would bump those limits up, that won't help you for this claim but for the future. If you don't own property you can get away with less but at least $100,000/$300,000 and $100,000 for property damage (cars are expensive these days). Also don't skimp on your Uninsured/Underinsured motorist coverage that will be your safety blanket if you are in an accident with someone who has no insurance or is underinsured.

Big hugs! It will all be okay.

 

[stracci2000]

They have three years to file a claim for injuries so even though they paid for the property damage that doesn't restrict them from claiming injuries. The only way they couldn't claim for injuries would be if they signed a release of liability which they most likely didn't if your agent didn't mention it.

If they are suing you for $25,000 it is my understanding from an insurance standpoint that is the most they could get, they will most likely take less but they go for the maximum of course. At the point of reaching a settlement with your insurance company they will sign an agreement that prevents them from suing you in the future. I'm telling you, they are just looking for a payday and then they will go away.

If you happen to be insured with Statefarm or Allstate I have heard great things about them going to bat for their customers, and mind you the insurance companies have lawyers that work for them so policyholders don't typically get their own attorney but you can. If it was me I wouldn't worry until your agent tells you to worry. This is just very common, that's no comfort when it's you but it happens a lot.

I'm sure none of this will ease your anxiety because I have been there but this is what you have insurance for. One thing, if you own a home I would bump those limits up, that won't help you for this claim but for the future. If you don't own property you can get away with less but at least $100,000/$300,000 and $100,000 for property damage (cars are expensive these days). Also don't skimp on your Uninsured/Underinsured motorist coverage that will be your safety blanket if you are in an accident with someone who has no insurance or is underinsured.

Big hugs! It will all be okay.

Thanks for making me feel better, Stephanie.
I could tell right away, at the time of the accident, when the lady said her neck felt "funny" that she was lying, by the way she said it and the look on her face. But what could I do? I ignored her comment. But the policeman who showed up, asked if there were any injuries, and she said again, "my neck feels funny". Gaaaahhhh!
The insurance was with Progressive, and the agent has been very nice.
I actually now have 100,000/300,000, with Geico, but that does me no good now!
Insurance is so confusing to me, and ridiculously expensive. I guess to cover idiots lying about neck injuries.

I will be calling the agent again tomorrow to clarify what is going on (when he called me I was in a Thrift store!) and ask more questions.
Because I was unprepared for his call, I didn't know what questions to ask.
Thanks Stephanie for helping me with this!

 

[Bron357]

Luckily it’s different here in Australia. All personal injuries due to car accidents are covered by the cars registration ie the Government. So anyone injured has to “sue” the government. The Govt has special rules and limits. Certainly severely injured people get good money, but frivolous claims are swiftly dealt with. You can only get money for all the medical costs (including any medical equipment plus modifications to your house or car if necessary) and lost wages.

 

[stracci2000]

Luckily it’s different here in Australia. All personal injuries due to car accidents are covered by the cars registration ie the Government. So anyone injured has to “sue” the government. The Govt has special rules and limits. Certainly severely injured people get good money, but frivolous claims are swiftly dealt with. You can only get money for all the medical costs (including any medical equipment plus modifications to your house or car if necessary) and lost wages.

Well naturally, here in the USA, everything is expensive, screwed up, full of gray areas and red tape!!!

 

[YadaYadaYada]

Oh Progressive is a great company, you are in good hands (despite not being with Allstate).

I'm glad to hear you have higher limits now, yes it doesn't help with your previous claim but at the time I got sued I had 20/40 which is the state minimum, I was 18 at the time so what did I know?

Here is one for you, years ago I was hit from behind at a stop light, called the cops took a report blah blah, on my merry way. I was totally fine. The next day I get a call from a doctor's office, not mine, urging me to get checked out! I was like Oh Hell No! You know because they work with attorneys and everyone wants their hand in the pot. It's ridiculous.

This really is something you just have to try to put out of your mind and let the insurance company handle because they literally handle the whole thing, you don't have to go to court, they take care of everything. It is disheartening that people will use any excuse to get money, and the best part is they don't hesitate with an auto injury claim because they figure it's the company that pays and they have all this money but really we all pay, that's why the rates are so high!

Ah, you would be at the thrift shop, you know because they never call you when you are just sitting there doing nothing, only when you are otherwise enjoying yourself!

 

[stracci2000]

Oh Progressive is a great company, you are in good hands (despite not being with Allstate).

I'm glad to hear you have higher limits now, yes it doesn't help with your previous claim but at the time I got sued I had 20/40 which is the state minimum, I was 18 at the time so what did I know?

Here is one for you, years ago I was hit from behind at a stop light, called the cops took a report blah blah, on my merry way. I was totally fine. The next day I get a call from a doctor's office, not mine, urging me to get checked out! I was like Oh Hell No! You know because they work with attorneys and everyone wants their hand in the pot. It's ridiculous.

This really is something you just have to try to put out of your mind and let the insurance company handle because they literally handle the whole thing, you don't have to go to court, they take care of everything. It is disheartening that people will use any excuse to get money, and the best part is they don't hesitate with an auto injury claim because they figure it's the company that pays and they have all this money but really we all pay, that's why the rates are so high!

Ah, you would be at the thrift shop, you know because they never call you when you are just sitting there doing nothing, only when you are otherwise enjoying yourself!

Thank you Stephanie for making me feel so much better.
If I was in CT, I would come and give you a big hug! And we would check out your old mine cut!

 

[Dancing Fire]

If you don't own property you can get away with less but at least $100,000/$300,000 and $100,000 for property damage (cars are expensive these days).

We had $300K in liability, but once our teenage daughter started driving we bump our liability coverage up to $500k. Now they are on their own insurance policy but we still kept the same amount of coverage. The difference b/t $300k and $500k coverage is only like $80 per yr with AAA.

 

[YadaYadaYada]

Thank you Stephanie for making me feel so much better.
If I was in CT, I would come and give you a big hug! And we would check out your old mine cut!

And go to thrift stores and indoor flea markets

 

[YadaYadaYada]

We had $300K in liability, but once our teenage daughter started driving we bump our liability coverage up to $500k. Now they are on their own insurance policy but we still kept the same amount of coverage. The difference b/t $300k and $500k coverage is only like $80 per yr with AAA.

Yes it is really not much more money and you get a much higher level of security. You can also get an umbrella policy which will give you an extra million dollars or more worth of coverage over your auto and homeowners policies. That might sound like overkill but in an accident with multiple injured people or an injury at a personal residence the limits can get exhausted pretty quickly.

 

[TooPatient]

Yes it is really not much more money and you get a much higher level of security. You can also get an umbrella policy which will give you an extra million dollars or more worth of coverage over your auto and homeowners policies. That might sound like overkill but in an accident with multiple injured people or an injury at a personal residence the limits can get exhausted pretty quickly.

Umbrella is great too because it usually covers stuff that is excluded in other policies. Definitely worth looking into!

 

[Dancing Fire]

Yes it is really not much more money and you get a much higher level of security. You can also get an umbrella policy which will give you an extra million dollars or more worth of coverage over your auto and homeowners policies. That might sound like overkill but in an accident with multiple injured people or an injury at a personal residence the limits can get exhausted pretty quickly.

I was quoted an extra $380 per yr. if I wanted the extra $1 million coverage.

 

[YadaYadaYada]

@Dancing Fire sounds about right for that amount of coverage.

 

[LJsapphire]

Wow that's scary, hope it all works out for you.

I was in an accident last June (not my fault) and the ambulance chaser insurance companies have only just stopped ringing me (touch wood) asking if I want to claim for personal injury or damages. It was a low speed accident and nobody was hurt, I just wanted my car repaired and my son's car seat replaced. So annoying.

 

[ringo865]

In Minnesota the statute of limitations is six years. I Tboned a lady on my 1979 Ford Fiesta on memorial weekend in 1988. In may of 1994 I got personally served a lawsuit "for damages in excess of 50,000" (an amount over my policy-at-the-time limits) one day before the six years was up.

Due to that serve-by deadline, the process server was parked outside my garage door on a day when I had to drive to work.

But also, it named me and my then husband (to whom I had been married less than a year. I didn't even know him when the accident happened) Anyway, because it was a lawsuit, the insurance company defended the suit on my behalf. It ended up getting dismissed for "lack of prosecution" after the plaintiff did not respond to discovery.

It sounds like, from your agent, these people are just trying to get money from the policy. They have not filed a lawsuit. They have not served a lawsuit.

The insurance company could pay an amount to get them to go away, sign a release of liability. Or they could tell him to go fly a kite. Sometimes the "go fly a kite" response may initiate a lawsuit. But I believe the ins co will provide a defense should a suit be filed.

I would just sit back and wait and tell your agent tells you to do something. Easier said than done, I know. Good luck.

 

[Missy]

@stracci2000 I am so sorry you are dealing with this stressful situation but I am glad @StephanieLynn was able to share info with you and make you feel a lot better. Sending you good wishes and good luck for an easy and successful resolution! FWIW I think you will be A OK.
But boo to that couple who are trying to pull a fast one.