Got hit by an underinsured driver!

[desura]

What to do?

Got a call from his insurance. There is $10,000 to compensate for the accident.

He totaled one car complete, damaged the back and front of my car (hood and engine damage), and damaged the bumper of the third car.

I only have collision coverage. I do not believe I have underinsured coverage.

Small claims court?

 

[master_shake_]

his insurance called you?

but he is uninsured?

 

[desura]

his insurance called you?

but he is uninsured?

underinsured

 

[Zargon]

underinsured

 

[Jimzz]

Call your insurance and see if you have underinsurace. Some states require it now in basic coverage.

If not then better hope he has assets, if not then you are f__ked. Also if your insurance can't help sue him ASAP. You want to be first in line for his assets, not last.

Someone hit my truck so I sued him and won. The problem is he has no steady job, no bank account, or any real assets.

 

[tHa ShIzNiT]

his insurance called you?

but he is uninsured?

I misread it the same way.

 

[highland145]

Call your insurance and see if you have underinsurace. Some states require it now in basic coverage.

If not then better hope he has assets, if not then you are f__ked. Also if your insurance can't help sue him ASAP. You want to be first in line for his assets, not last.

Someone hit my truck so I sued him and won. The problem is he has no steady job, no bank account, or any real assets.

S.O.L...that sucks.

I posted it before ....my CPAs kid was charged with a 5 car wreck. Their $100K coverage wasn't nearly enough so the victims went after their personal assets.

 

[Midwayman]

Good luck getting blood from a stone.

Question is why you have liability only insurance on a vehicle that costs more than $10k?

 

[LTC8K6]

Good luck getting blood from a stone.

Question is why you have liability only insurance on a vehicle that costs more than $10k?

Liability is not spelled "collision"...

 

[smackababy]

Liability is not spelled "collision"...

Isn't collision required under the minimum liability insurance? Full coverage, to my understand, includes comprehensive and additional coverage.


Regardless, OP, are you sure you only have collision? If you have a loan or are leasing your vehicle, you're generally required to carry full coverage. And, if your car is worth more than the state minimum required insurance, why wouldn't you have coverage to include that, in the event someone with only the bare minimum hits you?


As far as small claims court, I believe that is only for disputes under $5,000. If the amount over $10,000 is more than that, you might not be able to sue him in small claims court. And, even if you can, good luck getting your money. You might be able to sell the debt to a collection agency, but you're getting pennies on the dollar for it.

 

[Midwayman]

Liability is not spelled "collision"...

I assumed he miss-spoke since he said he 'only' had it. Typically if you have collision you're covered for uninsured/underinsured. If he has collision and not just straight liability he should be talking to his insurance and let them fight with the other company on who pays what.

 

[etrigan420]

I assumed he miss-spoke since he said he 'only' had it. Typically if you have collision you're covered for uninsured/underinsured. If he has collision and not just straight liability he should be talking to his insurance and let them fight with the other company on who pays what.

That's how I read it as well...my insurance doesn't even offer "collision". It's either Liability, or Comp-n-Collision w/ Liability, with add ons for Under/Uninsured, Towing, Rental, etc. etc.

Holy cow:

http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

Didn't realize that several states allow a minimum of $10k property liability (with a few at $5k!!!).

Regardless, my first call would be to *my* insurance provider.

 

[tailes151]

If you don't have UMPD (under/uninsured Motorist Property Damage) but you do have collision coverage just file with your own insurance company. Your company will pay for your repairs and withhold your deductible. Then they'll subrogate the other party's insurance carrier and get the $10,000. Depending on the state you are in, your insurance company may return your deductible to you. I haven't been adjusting for some time, but if I recall correctly some states require the insured be reimbursed before the insurance company (ie. you getting your deductible back). Then your insurance company can go after the individual for the difference.

 

[rommelrommel]

wow. minimum liability coverage here is 250k.

 

[Zenmervolt]

wow. minimum liability coverage here is 250k.

Where's "here"?

ZV

 

[boomerang]

S.O.L...that sucks.

I posted it before ....my CPAs kid was charged with a 5 car wreck. Their $100K coverage wasn't nearly enough so the victims went after their personal assets.

That's a shame because the cost difference between $100K and $300K or $500K is so minimal.

Kids, if you have assets of any type you want an Umbrella policy in addition to your auto and home policies. $1mil is pretty much the norm but I'm reading that it's being taken over by $2mil policies. Ask your insurer about it.

 

[smackababy]

I just looked at my policy and underinsured 25/50 is an extra 1.30 to my 6 month premium. If you don't have this, shame on you and you deserve it.

 

[KentState]

That's a shame because the cost difference between $100K and $300K or $500K is so minimal.

Kids, if you have assets of any type you want an Umbrella policy in addition to your auto and home policies. $1mil is pretty much the norm but I'm reading that it's being taken over by $2mil policies. Ask your insurer about it.

With how expensive a standard new car costs today, it only makes sense to have more than $100k. Only takes a couple luxury cars and some property to go over that.

 

[Midwayman]

With how expensive a standard new car costs today, it only makes sense to have more than $100k. Only takes a couple luxury cars and some property to go over that.

No kidding. After my last accident I was looking at the rates and it was something like $20 a year to go up to 500k. A single medical claim can run you over $100k pretty easy.

 

[rommelrommel]

Where's "here"?

ZV

BC Canada.

I have 3 million liability and 1 million underinsured coverage on top of my collision/comp. I'm probably upping it to 5 million (max offered) next renewal. GF has a lot of assets and doesn't like driving it without max coverage.

 

[Midwayman]

I just looked at my policy and underinsured 25/50 is an extra 1.30 to my 6 month premium. If you don't have this, shame on you and you deserve it.

Uninsured Motorist Bodily Injury (UM) Coverage
Covers you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Currently, Illinois law requires uninsured motorist limits of at least $20,000 per person and $40,000 per accident.
Uninsured Motorist Property Damage Insurance (UMPD)
Covers damage to your vehicle caused by an identified, at-fault, uninsured driver. This option is only offered if you choose not to purchase collision coverage. Currently, Illinois law requires that the company offer at least a $15,000 minimum with a $250 deductible.

From the department of insurance in Illinois. This will vary by state, but UMPD isn't even a thing if you have collision. If you're in a shared fault state its probably similar elsewhere.

 

[Zenmervolt]

BC Canada.

I have 3 million liability and 1 million underinsured coverage on top of my collision/comp. I'm probably upping it to 5 million (max offered) next renewal. GF has a lot of assets and doesn't like driving it without max coverage.

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

 

[Lifted]

I only have collision coverage. I do not believe I have underinsured coverage.

Small claims court?

You have collision insurance... why would you go to court? That's your insurance companies problem. Call your insurance company to report the accident and file a claim (if it's not already too late??) , and get your car repaired.

I don't know all of the differences between fault and no-fault states, but surely calling your insurance company is standard procedure regardless after being in an accident, yes?

 

[halik]

Call your insurance and see if you have underinsurace. Some states require it now in basic coverage.

If not then better hope he has assets, if not then you are f__ked. Also if your insurance can't help sue him ASAP. You want to be first in line for his assets, not last.

Someone hit my truck so I sued him and won. The problem is he has no steady job, no bank account, or any real assets.

Won't your own coverage subrogate whatever is left? That is, your insurance comps you and they then go after the guys assets to make themselves whole?

 

[halik]

If you don't have UMPD (under/uninsured Motorist Property Damage) but you do have collision coverage just file with your own insurance company. Your company will pay for your repairs and withhold your deductible. Then they'll subrogate the other party's insurance carrier and get the $10,000. Depending on the state you are in, your insurance company may return your deductible to you. I haven't been adjusting for some time, but if I recall correctly some states require the insured be reimbursed before the insurance company (ie. you getting your deductible back). Then your insurance company can go after the individual for the difference.

This, that was my understanding of how that works as well.