Legal Question in Insurance Law in California

Auto Insurance Offer

CALIFORNIA- A woman hit 2 of my cars and 1 of my neighbors that were all parked on the street in front of my house. Car no. 1 has full coverage and Car no. 2 has liability insurance only. Car no. 1 was totalled by my insurance and got paid for its worth. Car no. 2 was appraised and totalled by the woman's auto insurance. However, it's determined that the total cost of the damages (my car no. 1 cost from subrogation from my insurance plus my car no. 2 appraised value plus the neighbor's car worth) was more than the property damage limit which is only $10,000 of that woman's policy. Her insurance offers me to pay far less than what they have initially appraised for my car no. 2 and wants me to sign the release form that protects their insured from further liability. If I want to sue the woman in the small claims court for the difference of what her insurance offer, then I shall not sign the release form? right? If I will not sign that form, then her insurance will not pay me for the amount of the offer? right? Should I sue the woman for the whole amount? If the court give it to my favor but the woman doesn't have money or assets to pay the damage, can she just get away with it and I will get nothing? Should I just take the offer?


Asked on 7/27/05, 10:23 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Auto Insurance Offer

It is impossible to determine the legal impact of the release agreements without reading the full terms of the release. However, it is unlikely that the insurance carrier would pay you any money without obtaining a full release of claims that you might have against their insured. If you are considering suing in small claims for the difference, make sure you educate yourself on her ability to pay. If she has no money, then you might be better off taking the deal.

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Answered on 7/30/05, 1:04 am


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