What can an insurance company do to get their money back from an auto accident?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What can an insurance company do to get their money back from an auto accident?
My 17 year old daughter caused an accident and we did not have liability insurance (by error). The insurance company said my husband and my daughter, now 18, has to pay $25,800. It also said if they do not it will suspend their licenses. I just want to know does this all sound right? My husband is working on an agreement for $166 a month but my daughter can not afford to pay much if anything.
Asked on March 4, 2012 under Insurance Law, Florida
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The amount the insurance company is claiming that your daughter and husband owe from the accident may include both property damage to the other vehicle and the personal injury claims of the occupants. The personal injury claim(s) would include the medical bills, pain and suffering which is an amount in addition to the medical bills and wage loss.
The insurance company could file a lawsuit for negligence against both your husband and daughter. If the insurance company obtains a judgment, it could enforce the judgment by a wage garnishment, placing a lien on your property, etc. If your husband and daughter are unable to pay the amount of the judgment, they might want to consider filing bankruptcy. You should also be included in the bankruptcy. As for having their drivers's licenses suspended, that can occur for not having insurance.
As for filing bankruptcy, Chapter 7 is straight liquidation which eliminates debts. Income and other factors determine whether or not one is eligible to file Chapter 7. If ineligible for Chapter 7, a Chapter 13 bankruptcy could be filed; however, Chapter 13 requires a plan (budget) for repayment of creditors. It would be premature to file bankruptcy until there is a court judgment against your husband and daughter.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.