Can someone claim all medical bills $7,000 in a car accident, but pay only the 50.00 deductible and keep all the rest.

Question

My son was in an accident,  his fault, his grandfather drop the insurance on it without his knowledge.  His girlfriends father filed a claim through their insurance knowing that my son did not have insurance and so now my son is out over $7,000. 
The father claims he had medical bills but yet we believe he did not reimburse his medical insurance except for the deductible  and instead he bought a quad with it. 
 Would he be only out the money that was actually paid for the medical bills?  
Is this legal to claim medical bills that you never paid to get money? My son's grandfather was the title holder of the car and my son was paying him money each month for the car insurance.He did not realize that his grandfather had not paid on the policy. My son is not sure what he should do he doesn't have $7,000 he's 21 years old. Would he be out just what they're out of pocket if they're not going to pay the insurance company what they paid for the medical care?  please help

Louis George Fazzi · Answer

Your son may have a breach of contract claim against his grandfather for failing to secure the insurance that your son thought he was paying for each month.  If the car was registered to the grandfather, let him take care of the liability problems with the person making the claim.  You would be wise to have your son contact a personal injury lawyer to determine his rights and obligations.

William John Light · Answer

The father/daughter were within their rights to claim medical expenses that were paid by health insurance.  Certainly, the insurer has/had a right to reimbursement from the father/daughter when they recovered damages from your son.  That is between the health insurer and father/daughter, although the health insurer would have an independent right to pursue your son to recover monies it paid for health insurance (I have never seen this happen, but the right does exist).  Hopefully, your son received a Release Agreement upon payment of the settlement monies that would cover any possible claims by the father/daughter's health insurer.  Perhaps the health insurer was not notified of the personal injury claim and doesn't know that the damages were recovered?

Steven M. Sweat · Answer

I agree with the other answers that your son may have a breach of contract claim and/or a claim for "detrimental reliance" against the person he was paying for the auto insurance.  If the passenger claimed injury, the "reasonable value" of her medical expenses will be what was paid by health insurance (not what was billed) plus the $50 deductible, plus general damages for pain and suffering.  There may be a liability claim against the grandfather (as registered owner) and your son, as the driver.  Your son should try to work something out with the passenger as a settlement.

Q: Can someone claim all medical bills $7,000 in a car accident, but pay only the 50.00 deductible and keep all the rest.