Legal Question in Insurance Law in California
California auto insurance company trying to recoup loss
A relative was in a minor car accident recently. He claims it wasn't his fault. He wanted to call police, other party did not. The police were not called, so there is no report. He showed the other driver (teenage girl) his driver's license, she refused to show hers. She said she would call her own insurance. He did not hear from her for months. He estimates that the damages to her car were no more than $5000.
He just received a letter from her insurance company asking him for $14,000 for damages to recoup payments the company made to her for her car and for her medical expenses. She seemed fine after the accident. The letter threatened that "other measures would be taken" if he did not respond within 15 days.
If her insurance company has already paid her claim, how is he liable for paying the insurance company? Why did they not ask him or his insurance company to pay the damages first if they thought the accident was his fault?
1 Answer from Attorneys
Insurance and accidents
The law, I'm afraid, doesn't go out of its way to protect people from their own foolishness. Not calling the police, even when the other driver refused to show ID, is not very bright and it will make it harder for him to convince anyone he wasn't at fault.
Did your relative report the accident to his own insurance company . . . if he had one?
The other insurance company has a right of subrogation. If your relative was at fault and caused the accident, the other driver's insurance is not out there to protect HIM. Having paid the loss, they are entitled to try to get the money back from him, if he was at fault. He should send the letter to his insurance company. Hopefully he has one, and hopefully he reported the accident so they can't disclaim on late notice grounds.Otherwise, he should seek legal counsel; he's been penny wise and pound foolish long enough.
I'm sorry about the harsh tone of this note, but your relative needs a wake-up call.
The above does not constitute legal opinion and is offered for the purposes of discussion only. The law differs in every jurisdiction, andyou should not rely on any opinion except that of an attorney you have retained, who has a professional duty to advise you after being fullyinformed of all the pertinent facts and who is familiar with the applicable law.
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