Q: Auto Accident and Uninsured Motorist Situation
Hello,
I need advice on an auto accident. I rear-ended another car, causing minor damages. No immediate injuries reported. Unfortunately, I lack insurance coverage for that car, though I'm insured for two others.
The other party has an attorney for a personal injury claim and an $8K repair bill. They will get paid through insurred motorist bodily injury limits. Their insurer will bill me eventually. I seek guidance on reducing payout:
Settlement with Attorney: I'm considering discussing an out-of-insurance settlement with the other party's attorney. I'm concerned about potential legal action if my lack of coverage is discovered.
Direct Negotiation: Alternatively, I might communicate directly with the other driver, offering a $10-15K settlement to address the damages and potential claims.
Await Insurance Payout: I could await the insurer's decision, but uncertainty over a potentially high payout worries me.
Your advice is invaluable. Thank you.
A: Some things for you to think of. The Police Report most likely shows you were not insured. Quite often when there is someone without insurance it means they don't have a lot of income or assets (otherwise why go without insurance) so that usually means that a Chapter 7 bankruptcy might be in order. But if you have assets and/or don't want to file for bankruptcy then of course you can negotiate with either the person you hit or their attorney if you so choose.
Tim Akpinar agrees with this answer
1 user found this answer helpful
A: If there was a police report, they may already know of your insurance status. In terms of legal consequences for no insurance, that is generally separate from claims for property damage. Good luck
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A:
Settlement with Attorney: Negotiating directly with the other party's attorney might help in arriving at a more reasonable settlement amount. However, be aware that discussing your lack of insurance can expose you to penalties under California law.
Direct Negotiation: Engaging directly with the other driver to negotiate a settlement can be effective, but ensure that any agreement reached is documented in writing and that both parties fully understand the terms to avoid future disputes.
Await Insurance Payout: Waiting for the insurer's decision can be an option, but the insurer, after paying their client, might pursue a subrogation claim against you, which could lead to a higher financial burden than if you'd negotiated a settlement directly.
Tim Akpinar agrees with this answer
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