Legal Question in Insurance Law in Kentucky

I was in a traffic accident almost 2 years ago with no noticeable damage or injuries. Upon looking at the vehicles and each other, we discussed that there was no reason to file a police report or make any to do out of it. I didn't know at the time but my insurance policy had lapsed and I was driving uninsured. 3 months after, I get a call from a representative of State Farm Insurance (her insurance) saying that I owed $1200 for damages to her car. After some threatening by the rep (saying I could lose my license for 15 years) I decided I would pay for the damages. Upon making my last payment, the rep tells me that she has claimed almost $4000 in medical bills that I am responsible for. I believe that this is insurance fraud considering the accident was at little over 5 MPH. Am I liable for these charges and is it punishable by law if I don't pay them??


Asked on 3/02/11, 1:13 pm

1 Answer from Attorneys
Andrea Welker Welker Law Office

The question is, did you not get a release from State Farm when you agreed to settle for the $1200? You shouldn't have sent them any money without a full and final release of claims arising from the accident. Since the statute of limitations hasn't run yet, you could still be on the hook for more than that $4K, because the driver could still sue you for additional damages. State Farm is just subrogating what it paid to its insured driver.

You should take all the papers you have and consult an attorney before you make any more settlements that aren't final.

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Answered on 3/02/11, 8:28 pm


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