Sued after rear end

by Maria

My fiance was just sued after rear ending a car last year on the freeway while changing lanes, in which our car was totalled but there was barely a scratch on the other car (but the air bags of the car were out).

My fiance received a ticket at the spot, and was fine health wise. The lady in other car walked out and looked at her car , and was then taken to the hospital in ambulance as she complained about her neck and back.

Our insurance company, tried to pay her $17000 max after a lot of talking last year for her medical bills, but she refused and now has sued us complaining about back & neck injuries, loss of work and social problems with husband demanding over $100,000? Our liability coverage is only $25000. I really dont think she was hurt that badly.

What are the chances of out of court settlement, or settlement going over $25000? Do their lawyers have a way of finding out our net assets to push the settlement over $25000? What can be done best to protect this information?


Answer:

Hello,

This type of scenario is common. Suing for high amounts is common because this will pressure the insurance company to settle for policy limits. It does not mean that $100,000 will be awarded on a court of law.

Most of this cases do settle or at least 90% of them. Remember that the insurance company has a very high duty to you. They must do everything in their power to settle this within policy limits or they have to defend you (hire an attorney and go to trial). They will probably show that you only have $25K and settle for that.

Now, can their lawyer take your fiancee to court, get a judgment over the limits and then go after your personal assets. The answer is yes, they can. Depending of how aggressive that attorney is, they would be looking at his assets. If he has no assets, then he is judgment proof. If he has assets, then there is a potential for this.

Again, the insurance company will likely not pay $25K unless there is a release of all claims against you.

I hope this clear up some confusion. Make sure he discusses the situation with the insurance company before doing anything.

Good luck,
http://www.auto-insurance-claim-advice.com