Let's Discuss Auto Limits!

[iiinycboi]

So here's the situation,

insured has no assets, except car. (CAR A)
coverage is 50/100/50 full

3 car accident, insured ran stopped sign hit CAR B which in turn swerved and hit CAR C.

fault is determined to be 100% CAR A.

CAR B has 2 passengers, CAR C only driver.

now everyone is suing each other, but they all suing CAR A.

seeking judgement is 300k only from CAR B vs CAR A.

now, the limits are way over the insured limits, and a lawyer is provided to defend this case, but will only indemnify 50k person and 100k for the accident.

In the event, they lose and the judgement is granted. Now what happens to the rest of the judgement? What about subsequent law suits from CAR C? Does Insured/CAR A need to get a lawyer to help defend the additional limits? And if they lose, their total assets is the car and under 20k. Will they get that judgement they are seeking?

opinions? views? comments?'

on a side note, this does NOT look good on my loss ratio

 

[Josh]

I presume this is in NY?

Car A is most likely going to pay out the max and be protected under the "blood from a stone" defense.

Cars B and C, if they have more sense than car A, are going to have UI coverage to make up between the difference of what car A pays and what they think they should have.

I'm glad it wasn't me in the accident

 

[Sales71]

Her is my opinion usually they will go for the policy limits on Car A..but if car B has underinsured limits they can go after his own policy as well.

If the attorney sees no assets and nothing to take it might be all he will take from Car A is his limits and thats it.

Most insurance company are very tight on paying claims if they are suing for 300k based on what?? chances are they might take 25-50k if offered to settle. I had a case with farmers and they fight to pay all way to court.

 

[iiinycboi]

no clue, according to car A, it wasnt a "bad" accident, minor but multiple cars. car b and car c both called the ambulance to go get checked.

yes this is NY, no fault state, so their suing for pain and suffering but i dont know how they came up with that number though.

i figured they have to sue for the excess judgement first? then they can claim their own for not being able to get it from car A.

so Car A is not suing anyone, Car B and C is suing Car A, B suing C and C suing B. lol a big mess of lawsuits. mainly from the advice of lawyers?

 

[djs]

I'll give my experience in CA, not sure how it lines up though.

Unless there is significant injury (and usually if there is), the ambulance chasing attorneys are going after policy limits and will simply stop there, most of the time. To do this, they always ask for way more.

In talking with an ambulance chasing attorney that I had lunch with one day, he basically said they are looking for assets they can go after, they want the person to produce a list of potential assets that they can attach. Usually nothing comes out of it, so its back to the policy limits and move on.

The ambulance chasing attorneys are after the easy money, quick payday, not long drawn out stuff where the person will simply file bankruptcy anyway and they will have a judgement they can never collect on. Some common sense does apply, sometimes.

Dan

 

[iiinycboi]

Hey Dan,

yeah, that's what i figured, they have to come with the crazy number then they will settle on the policy limit and call it a day.

It seems like for auto in NY, everyone sues no matter what.

I bet that's why my car rates are 3500-5500 for half year lol. liability only..

 

[Guest]

no clue, according to car A, it wasnt a "bad" accident, minor but multiple cars. car b and car c both called the ambulance to go get checked.

yes this is NY, no fault state, so their suing for pain and suffering but i dont know how they came up with that number though.

i figured they have to sue for the excess judgement first? then they can claim their own for not being able to get it from car A.

so Car A is not suing anyone, Car B and C is suing Car A, B suing C and C suing B. lol a big mess of lawsuits. mainly from the advice of lawyers?

If the judgment against Car A is greater than the limits of their policy then they are personally responsible. So if the judgment against them is $200K and their policy limit is $50K, then they are personally responsible for the excess ($150K).

However, if they have no money or assets then there is little chance they'll ever pay anything.

If Uninsured Motorist is a factor (for instance is Car B has it) then the driver of Car B wouldn't have to sue anyone. He would collect the payment from Car A, then collect the payment from his own insurance company under UMP, then his insurance company will take care of suing Car A to recoup the money they are out due to the UMP payout.

 

[blue_wynd]

If Uninsured Motorist is a factor (for instance is Car B has it) then the driver of Car B wouldn't have to sue anyone. He would collect the payment from Car A, then collect the payment from his own insurance company under UMP, then his insurance company will take care of suing Car A to recoup the money they are out due to the UMP payout.

So someone would go to court, get an judgement for total payout including pain and suffering and use their own insurance company to get that judgement if the other party can't pay it? I wonder if their own company would pay the pain and suffering using the UIM/UM.

 

[Guest]

So someone would go to court, get an judgement for total payout including pain and suffering and use their own insurance company to get that judgement if the other party can't pay it? I wonder if their own company would pay the pain and suffering using the UIM/UM.

May be state specific... But in my state UM does not cover pain and suffering. It can cover actual medical expenses and lost wages.

Car A has no insurance. Car B has insurance that includes UM. Car A smashed into Car B.

Car B's insurance company covers the bodily injury to Car B's driver under his UM coverage. Car B's insurer then sues Car A's driver to recover their damages that they paid out under UM coverage.

 

[2Tall]

So here's the situation,

insured has no assets, except car. (CAR A)
coverage is 50/100/50 full

3 car accident, insured ran stopped sign hit CAR B which in turn swerved and hit CAR C.

fault is determined to be 100% CAR A.

CAR B has 2 passengers, CAR C only driver.

now everyone is suing each other, but they all suing CAR A.

seeking judgement is 300k only from CAR B vs CAR A.

now, the limits are way over the insured limits, and a lawyer is provided to defend this case, but will only indemnify 50k person and 100k for the accident.

In the event, they lose and the judgement is granted. Now what happens to the rest of the judgement? What about subsequent law suits from CAR C? Does Insured/CAR A need to get a lawyer to help defend the additional limits? And if they lose, their total assets is the car and under 20k. Will they get that judgement they are seeking?

opinions? views? comments?'

on a side note, this does NOT look good on my loss ratio

This is why i try to always write everyone at 100/300/100 limits minimum