Legal Advice Traffic Accident?
I live in Iowa and I got in an accident with someone where i was found at fault. I did not have insurance at the time. I was contacted by the other parties insurance agency and asked if I would agree to pay for the damages to their car to which I said yes. The insurance agency told me that the other party had not submitted a claim but when they did the insurance company would contact me with how much I owed them and we would set up payments. Just recently I received a letter in the mail from the other party with a quote attached to it demanding I send the money DIRECTY to the other person in 30 days or less or they would file a small claims suit. I didn't pay and now they are sueing me for the amount to repair their car. What I'm really wondering is if they have to go through their insurance agency to collect money for me or if it's actually legal for them to get it directly from me. I never agreed to pay the other party directly, only their insurance agency.
Answers:
They obviously chose not to file a claim with their insurance company and chose to pursue you directly. No, they dont have to go through their insurance company, especially if damages are below their deductible. My question is, who found you at fault? The police report? Police reports are not final determiniation.
I suggest that you file a claim against the other driver's insurance company for damage to YOUR car. Let them figure out who is responsible. I'd go to small claims court with proof that the claim is still being investigated. The Court will not issue a judgment if the insurance company is involved. So if the other driver wont bring the insurance company in, you can do it.
Talk to the other person's insurance company and ask them - if their client is trying to make an end-run around them, they'll need to know about it anyway.
It's perfectly legal for them to claim money directly from you. There's no reason they need to go through their insurance agency. You can't redirect their claim to your insurance, since you don't have insurance. If you go to court, the judge will probably force you to pay more than the settlement amount, unless you can show that you weren't at fault. If you can afford the payments, I'd suggest you contact them and offer to pay in return for them dropping the suit. Just make sure you obtain a written waiver of their right to sue you for any more money after you pay.
If the other person had collision coverage, then the repairs were paid for by his/her insurance, less deductible, in which case the insurance company would have subrogation rights against you. You would need a release from the motorist and the insurance company if you paid.
The answers post by the user, for information only, FreeLawAnswer.com does not guarantee the right.
Answer question:
More Law Questions and Answers: