Legal Question in Civil Litigation in Louisiana
if insurance pays restitution.....should i have to pay also
I was recently in a car accident.The other car was parked.When we went to file a report and call insurance.I thought my obligation was done,his car was a loss.his car was worth 3500.00 dollars,my insurance gave him 3700.00 dollars.The other party still owed money on this car and he wants me to pay.He said he owed 760.00 on the car but he wants a 1000.00 dollars for a down payment on a new car.500.00 dollars for a rental car(my insurance paid for three days).He also wants 500.00 dollars for stereo equipment he says was damaged .My insurance company looked at the equipment and found nothing wrong with it.I am under the impression that once I let insurance handle it,I am not responsible for any further costs.Please tell me if I am wrong
2 Answers from Attorneys
Re: if insurance pays restitution.....should i have to pay also
When he accepted the money he signed a release abandoning all claims against you and your insurer. If he negotiated for too little, that is his problem. You have no further obligations.
Re: if insurance pays restitution.....should i have to pay also
A misconception is that when a person settles a damage claim with an insurance company, they must sign a full release. That is not the case with regard to property damages. The insurance company MUST adjust the claim within 14 days of being informed of the incident and then must pay the "undisputed amount" within a reasonable time, not to exceed a certain period according to the circumstances. If they fail to pay timely, they hold themselves up to penalties. Therefore, the other guy taking the money does not mean his "claim" is over. HOWEVER, GOOD NEWS....YOU do not owe him anything....your insurance company MUST DEFEND you in any suit and MUST pay for any additional damages awarded to the other guy. Turn it over to the adjuster and forget it.
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