Accident with loaner car - help!!

[shamnath]

Hello,

In April 2005 I was living in VA and gave my car for repairs and got a loner car in place for a couple of days. I had an accident with the loaner car which my insurance company covered after deductable.

I moved to NY in July 2006 and have not owned a car since. A month ago I got a letter from the local courthouse in VA saying I am being sued by the company that owned the loaner car for $15,000.... 2.5 years after the accident!! So I called my old insurance company and they said accoridng to my policy they have hired a local lawyer to represent me in VA. I called the lawyer and he said the 15,000 is what they want for the depreciation cost of the accident. He also said that although he is paid by the insurance company, I am his client and he will work in my interest only.

My question is after 2.5 years.... getting a lawsuit for 15 grand is very nerve wrecking since i though that chapter was closed. Can they do this? Do you think I am liable for the 15,000 and will have to pay for it? Shall I get my own lawyer in NY? I am a recent college grad and can no way afford to pay that!

Pls help. Thanks so much

 

[VeronicaLodge]

depending on the SOL in that state, they can sue you, if you lose your insurance you had then which is providing you with an attorney should cover it so long as your coverage was adequate enough to cover it.

 

[ecmst12]

A lawyer in NY wouldn't help you since the suit is in VA. Don't worry about it, your insurance will take care of it. If they lose the suit, they will pay whatever the judge tells them to. It's a collision claim so you don't even have to worry about limits.

 

[VeronicaLodge]

oh thats good to know ecmst12!

 

[shamnath]

Ok... I was thinking how i would make payment plans to pay 15000 over like 5 years or something!

The insurance company sent me a letter saying they have hired an attorney to represent me as part of my policy.... i know this is crazy but i am going to post it here because from what i see.... they are saying all they can do is hire a lawyer for me and in the end if i lose, i have to pay the 15000.

".... in accordance with the terms of your policy number xxxxxxxxxxxx, the defense of this matter has been referred to the law firm of Mr. xxxxx who shall be notofied immediately if you are making or intend to make a claim against the plaintiff or any other party.

This defense is provided subject to all terms, conditions and provisions of the policy and should not be discussed with unauthorized reps.

Since the amount sued for may be increased at any time, you may wish to obtain your own attorney to protect your interests for any amount in excess of your policy limits.

If this case goes to trial you will be notofied of the dates, times for you to be there.

If you ahve any other insurance, which may cover this loss, you should notify us immediately"

Now I know that my collision coverage was like 250,000... so i would think the 15,000 i am being sued for should be part of the collosion coverage. right? Am i thinking too much about this?

Thanks so much.

 

[moburkes]

There's no such thing as collision for $250,000. What you are likely quoting is your liability coverage which has nothing to do with this accident. Let your insurance company handle it.

 

[ecmst12]

Collision coverage does not have a set limit. It has a deductible, and anything up to the fair market value of the car is covered. That's why it costs more when you have a newer, more expensive car. Your insurance company is fighting the claim because they believe the rental company is trying to get money they are not entitled to, beyond the cost to repair the car. I have dealt with this myself. If they lose, they are still obligated to pay on your behalf.

 

[shamnath]

ok... My collision deductable was 500 which I paid in 2005. So if this lawsuit is between the insurance company and the car dealer... Why are they involving me? The court papers say Auto company vs me... Not the insurance company. And the letter I quoted above... They sent a second copy asking me to sign it and send it back... Shall I?

Your input has been greatly appreciated!

 

[moburkes]

ok... My collision deductable was 500 which I paid in 2005. So if this lawsuit is between the insurance company and the car dealer... Why are they involving me? The court papers say Auto company vs me... Not the insurance company. And the letter I quoted above... They sent a second copy asking me to sign it and send it back... Shall I?

Your input has been greatly appreciated!

Since the insurance company didn't cause the accident, there is no reason to sue the insurance company. The insurance company represents you, but they are not you. They sued the correct party. I don't see the problem with signing the letter. It is simply providing you with the facts, and suggesting that you may need your own attorney.

 

[ecmst12]

And the letter I quoted above... They sent a second copy asking me to sign it and send it back... Shall I?

Ask your lawyer!!!

 

[teflon_jones]

A few comments:
1. Do everything through the lawyer that has been provided to you. DO NOT do anything directly with the other insurance company or anybody representing them. Let your lawyer do everything.
2. Diminished value claims are not supported by the Virginia Supreme Court so this case is unlikely to get very far. It will most likely be dismissed by the first judge that sees it.

What kind of car was it that they're trying to claim 15k in diminished value on?

 

[shamnath]

they gave me a brand new car for a loaner. its was an audi a4 2005 (brand new then) with a 150 miles and plastic on the seats. I felt horrible and just my luck the first ever accident i have is with a car not even mine.

i want to say thanks to all who commented on this.... really makes me feel relieved. merry christmas.

 

[shamnath]

My insurance company from 2005 just called to say they checked with lawyers and in 2005 the policy did not cover if I am sued for the diminishing value of the loaner car. So they are dropping the lawyer they assigned for me and have basically said "f*ck you" and get your own lawyer and "btw the trial date is in Jan".

Can they do this? I though my collision coverage would cover this? Also you mentioned the VA does not recognize this kind of suit and would be thrown out by the first judge.

I am very worried and would greatly appreciate your comments and advise....

Thanks so much

 

[moburkes]

Contact the department of insurance for your state. Ask why the insurance company isn't responsible for defending you.

 

[ecmst12]

I think your insurance company is full of crap. DV may not be covered in your state, but that doesn't mean your insurance company isn't obligated to defend you. I second Mo's advice.