Auto accident lawsuit

[jpeter1093]

Hypothetically speaking: Let's say you were in an auto accident that turned out to be your fault. Police arrived; the other driver was taken away in an ambulance but was conscious and not bleeding or with obvious issues. No tickets were issued.

2.5 years later; you're served with a summons that you're being sued for pain and suffering. Your auto insurance company's attorney is representing you; you also have an Umbrella policy with the same company.

I know the attorney is really representing the insurance company, do I need my own attorney? Are these types of lawsuits common? What's the typical outcome? If my coverage levels aren't enough to cover the final judgement; can my IRA accounts be taken?

Hypothetically speaking; never been sued before so am a bit anxious.

Thanks, team.

 

[Fermion]

Pretty sure your IRA accounts would be ok up to $1 million in most states...401k is unlimited? Not sure.

How much was your umbrella policy? I doubt they would go for more than a quick settlement on that but I am not an attorney.

 

[Aerides]

In those hypothetical shoes I would consult with the insurance company and an independent attorney.

 

[MarieIG]

Sorry to hear that you are going through this.

The lawyers are paid by the insurance company - but represent you. There is an excellent chance that the case will resolve within policy limits, in particular as you have umbrella coverage. Whether your IRA is shielded depends upon your state.

These lawsuits are very, very, very common.

 

[MC Rider]

.............I know the attorney is really representing the insurance company, do I need my own attorney? Are these types of lawsuits common? What's the typical outcome? If my coverage levels aren't enough to cover the final judgement; can my IRA accounts be taken? .................

Yes, consult your own attorney. Maybe you do not need to go further with them, but get a consult.

 

[Drake3287]

Sorry to hear that you are going through this.

The lawyers are paid by the insurance company - but represent you. There is an excellent chance that the case will resolve within policy limits, in particular as you have umbrella coverage. Whether your IRA is shielded depends upon your state.

These lawsuits are very, very, very common.

Exactly this. I'd also talk with the insurance companies attorney before spending any money on a phone call to your own attorney. Pain and suffering lawsuits after 2 years are simply a money grab, your insurance company will probably pay out $10k just to get rid of them. Don't lose any sleep on it, you pay insurance for just this reason.

 

[MarieIG]

Exactly this. I'd also talk with the insurance companies attorney before spending any money on a phone call to your own attorney. Pain and suffering lawsuits after 2 years are simply a money grab, your insurance company will probably pay out $10k just to get rid of them. Don't lose any sleep on it, you pay insurance for just this reason.

Is there any indication in written communications from either the insurance company or the attorney appointed by the carrier that coverage is being disputed, i.e. "a defense is being afforded to you under a reservation of rights"?

*I would also speak with the attorney appointed by the insurance company to represent you. Although they may not immediately have the full details of the alleged injuries, they should be able to give you a very good idea of procedure.

You can also call them (every other month or so) for updates - which tend to happen in spurts. They live and breath this stuff.

OP - please do not count on anyone on this forum to give you accurate legal advice.

 

[Stormy Kromer]

There is likely a claims rep at your insurance company that is doing most of the leg work and knows the most about what is really taking place. You may be able to speak with them.

The attorney hired by the insurance company represents you and will act in your best interest.

 

[njhowie]

I am not a lawyer, so take this with a grain of salt.

Much is going to depend on what state this took place in. If it was in a no-fault state, potential for such a lawsuit is going to be severely curtailed. FL, NY, NJ, and PA are among the 12 which are such. What I've found is that generally the statute of limitations for bringing the lawsuit is two years. Further, for such a lawsuit, the injured person must typically meet certain thresholds such as suffering a serious injury or incurring significant medical expenses. Additionally, the injured person may have to prove that the other driver was grossly negligent or that the accident was caused by intentional wrongdoing. You've indicated that in this hypothetical situation, there was no serious injury.

All that being said, for someone who carries an umbrella policy, in my non-legal-professional opinion, there would appear to be absolutely no reason to look for counsel outside of the insurance company. Non-no-fault insurance states may be different, but again, the fact that you indicated there were no serious injuries would tend to downplay the validity of such a lawsuit.

 

[Masquernom]

A similar thing happened to me when I was young and in college. Sued 1-1/2 years after a minor accident. In my state you needed to have medical bills above a certain amount before you could sue. Took that long to accumulate that much, including plastic surgery for a small scar on back of shoulder.
Insurance company provided lawyer. State Farm at the time. They offered to settle IIRC for about $3,000. The other lawyer said no, so we went to trial. Seven member jury awarded $1,500.
We spoke to the judge after the trial. He said the jury were mostly local business people and he knew they weren't going to award much. On the drive back with my lawyer, he was very happy. He mentioned State Farm thought he walked on water since that was the third or fourth trial where he'd got an award for less than was offered to settle.
It was a very educational experience for me of the US legal system. I was at fault for the accident, so that wasn't at question, and insurance covered everything, so I was more just an observer of the whole thing.

 

[Kings over Queens]

Hypothetically speaking: Let's say you were in an auto accident that turned out to be your fault. Police arrived; the other driver was taken away in an ambulance but was conscious and not bleeding or with obvious issues. No tickets were issued.

2.5 years later; you're served with a summons that you're being sued for pain and suffering. Your auto insurance company's attorney is representing you; you also have an Umbrella policy with the same company.

I know the attorney is really representing the insurance company, do I need my own attorney? Are these types of lawsuits common? What's the typical outcome? If my coverage levels aren't enough to cover the final judgement; can my IRA accounts be taken?

Hypothetically speaking; never been sued before so am a bit anxious.

Thanks, team.

Does the summons contain a demand for an amount of money that exceeds your auto and umbrella coverage? If it does, then you POTENTIALLY have an out of pocket exposure.

Keep in mind, your defense costs in this lawsuit do not erode the limit of insurance that could be used to settle any judgement for injuries. That should give you a measure of comfort.

I can't speak to your IRA accounts, but, given the picture you painted, I wouldn't be too worried about it.

I'll repeat what's been said with regard to the attorney, they represent you. The insurance company pays their bill, but they represent you, and my experience in these matters tells me they will work to keep any settlement, should it get that far, inside your coverage limits. This should also give you a measure of comfort.

 

[COcheesehead]

A friend of mine went through something similar. The settlement spilled into her umbrella and because she had the claim, she couldn’t get another umbrella for sometime, years if I remember correctly.

 

[freedomatlast]

I'd talk with the insurance company's attorney before spending any money on a phone call to your own attorney. Pain and suffering lawsuits after 2 years are simply a money grab, your insurance company will probably pay out $10k just to get rid of them. Don't lose any sleep on it, you pay insurance for just this reason.

Exactly!

 

[OldShooter]

... Your auto insurance company's attorney is representing you; you also have an Umbrella policy with the same company. I know the attorney is really representing the insurance company, do I need my own attorney? Are these types of lawsuits common? What's the typical outcome? ...

Have you talked to the attorney about these questions? You should.

Do you know other attorneys socially? Maybe ask one or two of them as well.

Not that you can do anything with this, but maybe 10 years ago I talked to the head underwriter, later to be company president, of Avemco which is maybe the largest aviation insurance company in the US. Their policy limit was $1M, which seemed quite low to me. One of the things he told me is that in his entire career he had never seen a jury award damages above the insurance policy limit. His theory was that juries are very inclined to stick it to insurance companies, but do not want to go after the defendant's other assets. You might also ask your attorney about this.

 

[COcheesehead]

It can’t hurt to talk to a private attorney. In my experience, the first call is free. At least you will begin to I understand your situation better from another perspective.
I talked to one local attorney three times without him charging me. I dropped a Starbucks card at his office as a small token of appreciation.

 

[pacergal]

This happened to our daughter, while she was still on our insurance. But the lawsuit came within a month or two. Our insurance handled the whole thing, they settled for $10,000, which wast the max our insurance offered them (it was well documented by police, both at fault and got ticketed). The guy was suing for several $100,000, and we were on pins and needles. Our claims rep kept us informed, had done their due diligence, the suing attorney was one well known for going after car accidents. The other driver smelled like alcohol when I arrived to check on our DD and he came over to ask if we had insurance (DD was talking to the police officer at the time). When the officer came over to talk me, I asked if he was being charged with drunk driving because I could smell alcohol on his breath. I don't know what he was charged with, but his ticket slip was way longer than DD!

However, when renewal time came our insurance refused to insure us if DD stayed on our policy, unless we paid an incredibly higher premium.
We changed insurance companies, but did tell DD it was time to got on her own. She was over 21, and getting ready to move out.

 

[Breedlove]

We went through this a few years ago . I got hit by a person who had the basic liability . I was the one to sue. My attorney got a copy of my insurance policy and I had to get a copy of the person who hit me. My attorney went after the max on what her insurance offered and found I had some insurance from my company that I was due . He said it wasn’t worth chasing the individual . We settled . If it was a business with a bigger policy then it changes. Attorneys work for money and really easy money . They won’t go to court.

 

[PatrickA5]

Have you talked to the attorney about these questions? You should.

Do you know other attorneys socially? Maybe ask one or two of them as well.

Not that you can do anything with this, but maybe 10 years ago I talked to the head underwriter, later to be company president, of Avemco which is maybe the largest aviation insurance company in the US. Their policy limit was $1M, which seemed quite low to me. One of the things he told me is that in his entire career he had never seen a jury award damages above the insurance policy limit. His theory was that juries are very inclined to stick it to insurance companies, but do not want to go after the defendant's other assets. You might also ask your attorney about this.

I'd have to think that lawyer never had a case with serious injuries while maintaining minimum liability coverage. There are some people that have assets but want to pay the minimum insurance (25/50 in my state).

I was rear-ended a few years ago. Didn't even go to the hospital after the accident, but developed serious neck and shoulder pain soon after the accident. I ended up needing 3 level fusion about a year later. We settled for policy limits ($125K), but my lawyer left it up to me if I wanted to go to trial. He thought there was probably a 50/50 chance I'd get more in trial. The defendant had some other assets to go after, but at that point I just wanted to put it behind me.

 

[Masquernom]

Several years ago I attended a presentation by a retired judge in Michigan that was given during a course for a concealed carry license. He explained that if you shot someone in your home, you may be clear of criminal charges, but NOT civil charges. And if you have an umbrella insurance policy, you're a lawyer's dream.
I'm not advocating against those policies, it was just a surprise how the retired judge viewed them.

 

[OldShooter]

Several years ago I attended a presentation by a retired judge in Michigan that was given during a course for a concealed carry license. He explained that if you shot someone in your home, you may be clear of criminal charges, but NOT civil charges. And if you have an umbrella insurance policy, you're a lawyer's dream.
I'm not advocating against those policies, it was just a surprise how the retired judge viewed them.

Yes. but if you shoot them on your front porch it is important to drag them inside before calling the cops.

 

[MC Rider]

Yes. but if you shoot them on your front porch it is important to drag them inside before calling the cops.

You just need a little more land.
And a backhoe.

 

[Fermion]

You just need a little more land.
And a backhoe.

I have found an excavator works

edit: Before anyone gets the wrong idea

A backhoe is faster

 

[Donno]

I had a guy tell me once that when a person buys an umbrella insurance policy, they're not paying for insurance, they're paying for a team of high-priced lawyers. If you think about it, the more money the insurance company has to lose, the more they are going to fight to keep it.

 

[JoeWras]

Several years ago I attended a presentation by a retired judge in Michigan that was given during a course for a concealed carry license. He explained that if you shot someone in your home, you may be clear of criminal charges, but NOT civil charges. And if you have an umbrella insurance policy, you're a lawyer's dream.
I'm not advocating against those policies, it was just a surprise how the retired judge viewed them.

Yeah but "retired software engineer " is also a lawyer's dream, worth discovery at least.

I prefer to leave the dreaming between insurance companies and not on my stash of treasuries. I'll get the umbrella.

 

[wyecrabber1]

Going through this right now. My wife and I flew to Dallas from Florida to adopt a golden doodle puppy in August. The cost to put a pet on a plane unless it fits under the seat in front of you, you are active military or is a service dog is extremely expensive -- for our 27 pound puppy it was close to $2,000 to be placed in the cargo hold. So we rented a car from Hertz and headed east.

Around 8:00 at night outside of Mobile the small suv we were driving was reared-ended by a ford F-350 going 45+ mph. We were slowly down for stopped traffic in front of us. The rear 3rd of the car was collapsed into the second seat and the car was totaled. Due to the pain in my neck radiating down my arm and lower back pain and spasms, I was transported to a hospital in Mobile. Spent most of the night and was discharged with whiplash and soft tissue injuries, not fractures. Over the last two months I've had 4 lower spine injections x2, taking tramadol and flexeril regularly. I'm just beginning to feel better and turn the corner.

Immediately, called my state farm agent and reported the accident. Police report states accident was the fault of the other driver. My agents says, nothing to worry about, you have great coverage -- he files the claim. A few days later a claim adjuster from state farm tells me I'm not covered under PIP. I immediately call my agent, he says that's bullshit and calls the claim adjuster. Two days later, my agent calls me back and says your not covered under PIP. He says (1) because the accident occurred outside of my home state and (2) I was in a rental car for the purpose of pleasure (not because my vehicle had mechanical problems/was being repaired). There's some fine print he was not aware of. I'm not covered. He said I could file for pain and suffering through state farm.

This has been a nightmare, too many moving parts... Medicare is rejecting the claims due to it being the result of an accident, State Farm is saying we don't have to pay. My secondary insurance is denying payment. So, I hired a personal injury attorney. The medical bills are beginning to come in -- medical expenses are more than $35,000.

The other piece that complicated this entire situation is I've had several cervical and lumbar fusions over the last 20 years. My last spine surgery was 2+1/2 years ago to enlarge the nerve openings and remove some bone fragments. I have not needed any treatment or physical therapy since then. I was able to play golf twice a week, get on the treadmill everyday... have an active life. There's been not golf, boating/fishing, limited treadmill time.

It will be interested to see how this all plays out.