Auto accident - Who do I pay?

[in_dire_straits]

I was recently involved in an auto accident in Franklin County, Ohio. I was cited for Assured and Clear Distance, so basically, it was legally my fault. However, I was not the owner of the vehicle I was driving and it turns out the vehicle I was driving was under-insured.

The 'victim' has insurance but claims that he will not file a claim if I pay him the amount of his estimate plus $1000 for incurred medical bills. He claims he will drop the claim and notify his insurance company to not take any further actions.

So what do I do? Pay him in cash with a recipt/contract (no further costs) or let him file the claim and tough iit out with his insurance company? Please advise, thanks.

 

[in_dire_straits]

bump

 

[ohfiddle]

In-Dire,

What do you mean, the car you were driving was underinsured? Was a claim ever presented to the insurance carrier that insured your friend's car? If so, did they accept or deny the claim?

Depending on the insurance policy, coverage may be denied since you were driving the car. But this is not a given, so that route should always be checked first. Secondly, did you have automobile liability insurance in your name, at the time of the accident. If so, check with your insurance agent re coverage.

The risk you leave yourself open to if you pay the other driver in cash, is that you must also get a valid release from him releasing both you and the owner(s) of the car you were driving of any other claims they may wish to make due to this accident. The language in releases must be thorough and complete, and if you don't know what you are doing, you could leave a big loophole for this person to climb right through and file a claim anyway, even after you paid the agreed on amount.

Find out what coverage may cover you for this accident first. If you don't want a claim against your coverage, or if you have no insurance coverage, then negotiate with the other driver, but do it wisely. Nolo Press has various self-help legal books. Check your local bookstore and see what's available to you, especially regarding obtaining the proper release from the other driver, so that he can't come back later and sue you anyway.

 

[in_dire_straits]

Thanks for the reply ohfiddle!

I'll try to answer the questions you asked.

>>What do you mean, the car you were driving was underinsured? Was a claim ever presented to the insurance carrier that insured your friend's car? If so, did they accept or deny the claim? >>

- The car I was driving was only insured for damages to the car I was driving...as opposed to totally uninsured. No, we did not have to file a claim per se, as there was no appreciable damage to my friend's vehicle...though we did notify my friend's insurance company. So, they neither accepted or denied the claim as no damage to my friend's vehicle was claimed.

>>Depending on the insurance policy, coverage may be denied since you were driving the car. But this is not a given, so that route should always be checked first. Secondly, did you have automobile liability insurance in your name, at the time of the accident. If so, check with your insurance agent re coverage. >>

- Not applicable to this situtation, my insurance company only covers claims that were made while I was driving my vehicle, not my friend's...though I did check.

>>The risk you leave yourself open to if you pay the other driver in cash, is that you must also get a valid release from him releasing both you and the owner(s) of the car you were driving of any other claims they may wish to make due to this accident. The language in releases must be thorough and complete, and if you don't know what you are doing, you could leave a big loophole for this person to climb right through and file a claim anyway, even after you paid the agreed on amount.

Find out what coverage may cover you for this accident first. If you don't want a claim against your coverage, or if you have no insurance coverage, then negotiate with the other driver, but do it wisely. Nolo Press has various self-help legal books. Check your local bookstore and see what's available to you, especially regarding obtaining the proper release from the other driver, so that he can't come back later and sue you anyway. >>

- This is great advice, I will consult an attorney early next week, thanks again ohfiddle!


If anyone else has experience or stories relating to myt situation, please share. Thanks!