Legal Question in Insurance Law in California

I'm The Underinsured Motorist...Any Advice?

I was recently involved in an at-fault accident (brake failure) wherein my property damage coverage (5K max) and possibly BI coverage (15K per person; 30K max) will not cover the damage fees I incurred.

I understand that should the other drivers have Underinsured Motorist coverage that their carrier will cover the damages to their cars in relation to my coverage, but in regards to the extra expenses, how will this affect me? If the other party's insurance companies come after me (I have no assests of value, make less than 600.00/mth, and pay college tuition) will I have to declare bankruptcy? Will I have to pay a minimum restitution for the next 80 years?? I have found nothing in reference to accidents coming from this p.o.v.

(Also, I am not a minor, and owned the vehicle outright so my parent's house and other assests will not be involved.)


Asked on 11/07/06, 12:02 am

1 Answer from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

Re: I'm The Underinsured Motorist...Any Advice?

You can expect the insurance company to refer you to collections. Your best bet would be to contact the insurance company now and be polite. See if you can get them agree to some sort of payment plan after they pay their insured. If not, when the collection agency calls you, see if you can set up a payment plan. If they say no, consult with a bankruptcy attorney. The insurance companies and collection agencies can get aggressive with you. You can read about some of this at my blog, www.calpiblog.com

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Answered on 11/09/06, 10:45 pm


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