Am i liable for the difference between what insurance paid and what they owe?

[Soccrluv]

VA - My wife was in a rear end collision, her fault. Our insurance has totaled out the car she hit (was minor bumper damage, but the car was too old and not worth the fix per the insurance company). The person she hit is now claiming she has no choice but to file a suit against my wife after unsucessfuly trying to get us to pay out of pocket, as she doesnt have the $2500 difference between what she owes on the car even after the $4950 the insurance is giving her. As it stands, she claims shes taking us to court to recoup the 2500 she was upside down on her car. Does she have a case? Isnt this what we carry insurance for? The insurance paid her for the damage my wife caused. The fact that this woman is upside down on her payments isn't our fault, correct?

 

[latigo]

VA - My wife was in a rear end collision, her fault. Our insurance has totaled out the car she hit (was minor bumper damage, but the car was too old and not worth the fix per the insurance company). The person she hit is now claiming she has no choice but to file a suit against my wife after unsucessfuly trying to get us to pay out of pocket, as she doesnt have the $2500 difference between what she owes on the car even after the $4950 the insurance is giving her. As it stands, she claims shes taking us to court to recoup the 2500 she was upside down on her car. Does she have a case? Isnt this what we carry insurance for? The insurance paid her for the damage my wife caused. The fact that this woman is upside down on her payments isn't our fault, correct?

You will want to check with the company, of course, but I'm confident that you will find that its payment of the $4950 was given in exchange for her full release and waiver of all present and future claims of every kind and nature arising out of the collision.

As far as being liable for her auto loan balance there is no way she could establish that as proper element of damages arising out of the collision. If you would like an explanation of the difference between consequential damages that are foreseeable and thus allowed and those that are incidental and unforeseeable and disallowed, ask.