Legal Question in Personal Injury in California
My street parked car was totaled by another driver who damaged 2 other cars as well. My car was worth $5500 according to his insurance company. At the time of the accident I didn't have insurance because I was in Europe for a whole year. My brother was the designated caretaker of the vehicle while I was away.
His insurance company is only willing to pay me $1500 (payout for the damages were split 3 ways) and wants me to sign a letter in which I would release all claims and actions against their client.
What should I do and what can the guilty driver's insurance company do if I refuse to sign the release paper?
1 Answer from Attorneys
The driver probably doesn't have enough insurance to pay for all the damage he caused, so his insurance company is probably trying to negotiate three settlements within his policy limits.
There may be room to negotiate for some more money, but the company probably will not offer you the $5,500 that it admits your car was worth. If you agree to take a lower amount, it will insist that you sign the release.
If you refuse to sign, the insurer won't give you the money and you will have to sue the driver. If you win the lawsuit, the insurer will pay you either the remaining amount of the driver's policy limits or the amount of the judgment, whichever is *lower*. Presumably the policy limits will be lower, and you will have to try to collect the rest of the judgment from the driver.
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