Hello! I am looking for some advice on my below situation, thank you in advance
In January of this year, my partner (at the time, now ex) was driving my car with me as a passenger, and was at-fault in a collision involving one other driver. She was listed on my policy as a driver, this was in the state of Arizona.
The collision totaled both vehicles but there were no casualties or major injuries. I went to the hospital to get checked out and as I was leaving saw the other driver walking around the lobby in his original work clothes, so while he may have had some minor injuries I believe he was ok for the most part.
I’ve been working with an adjuster over the course of this year – I didn’t have PIP but technically my hospital visit was covered under the liability coverage, since my ex was on the policy as a driver and I was a “not at fault” injured party (or something to that effect). My policy limit was $25k per individual per incident.
I got notice around June this year that the other party had hired a lawyer who filed that they exceeded the $25k policy limit in accident related health expenses, and they were requesting my insurance to pay the full amount immediately and that they would be following with an additional legal claim once the “full extent” of his injuries were better understood. The letter said that he was seeing a chiropractor and therapist, but I don’t know beyond that.
A few years back my grandma was in the opposite situation and filed a suit against an at-fault driver and ended up winning something like a $100k settlement for getting a broken wrist, but it also took 3-4 years before the case was ruled.
My adjuster told me that the other driver can try to file a suit against my insurance to pay out more than the $25k, but that my insurance could deny that and have the suit made against my ex or myself as I was the vehicle owner and main policy holder. My ex doesn’t have any assets or income so in the event that a suit is ruled in the other driver’s favor, I’m concerned about my own liability. As it’s over 9 months later now, I am also suspecting it’s going to take a significant amount of time before things develop any further.
My question is – does anyone have experience with this type of situation? Is it common to have the policy holder to be held personally liable in the case of a lawsuit if the insurance declines a settlement and the driver cannot be held liable? Is there anything I can do at this stage to prepare or protect myself?
Thank you again for any insight
Personal liability from other policy driver’s accident
byu/emiliemakani inInsurance
Posted by emiliemakani
1 Comment
If the vehicle owner and/or driver do not have enough coverage to settle the suit, then yes the party that was injured can come after the owner/driver’s assets. Typically a judge would not rule in favor of a settlement over the insurance liability limits, however if the injuries are severe enough or the owner/driver was negligent by not having enough coverage then it can happen.
At this point there is nothing you can do to protect yourself beyond continuing to consult with your insurance company.
For the record 25k liability limits per person is way too low – I would recommend no less than 100k. You don’t have to be a millionaire to be sued like you are one.