Q: Can I be taken to small claims court and be sued by insurance through subrogation?
I was considered at fault for a car accident where I had no insurance. I am being sued in small claims court as well as the persons insurance company is requesting repayment for the claim its self.
A: Yes. The person is likely suing you in small claims for what's commonly called "mini-tort", asking you to pay the deductible they had to pay or had subtracted from what their insurance paid out. The insurance company will hold you personally responsible for the total amount they had to pay out. Why? Because ordinarily when both drivers have insurance, the insurance companies do the exchanging of money, so that Company B pays Company A the money Company A paid out. Because you are uninsured, you just became your own insurance company.
A: If you are being sued by the person, you may want to settle, get a release of all claims, put on the check that it is a release of all claims, then you turn around and defend the subrogation case saying that is really a case that could have been brought by the other person, they released you, not your fault. You are no worse off and you head off a full on injury case.
A:
If you're being sued in both subrogation and for the deductible, check the damages asserted in the respective claims carefully so that you don't duplicate payments to either party. Make certain that a release is used so that you are not again pursued 6 months later for additional damages stemming from same claim.
Tim Akpinar
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