Not Sure My Insurance Company is telling me correctly.

[kklblue1]

What is the name of your state (only U.S. law)? Minnesota


I currently insure myself and kids. My daughter rear-ended someone, who rear ended someone. My problem is at the time of the accident I didn't know I did not have a good amount of property damage coverage. When I signed up and paid for online I never spoke to anyone, paid my premiums they mailed out insurance cards, thought I was good. (HUGE MISTAKE)

It turns out I have state minimum which is 10K. I realize my daughter is as fault and not disputing that point. The damage breaks down as follows:

Car 1 - $5602- they did not have insurance and filed with my insurance. Accepted offer and settled
Car 2 - $4410 - they filed through their own insurance. Damage, storage and towing total was about $8000.

$10K - property liability

Here is my question: Car 2 - it leaves about a $4000 deficit. My insurance company is stating that if car 2 insurance company signs the release to get the 4410 check, that the release also includes them coming after me or my daughter for the 4000 deficit amount. I have asked them repeatedly if the release includes mine and my daughters name. Have asked will the other insurance be able to come after us if they sign the release. They have stated every time that the other insurance company can't come after me or my daughter once release is signed.

This is where I think they are wrong. I believe the other insurance company CAN still come after me for the amount they were not reimbursed by my insurance company. Not denying I owe it, I just want to know if the time comes how to deal with the other insurance company. I did ask to see a copy of the release and was told I couldn't. I think they are giving me inaccurate information.

You guys have more experience then myself. Am i right to expect the other persons insurance company to expect reimbursement from me even if they signed a release.

Thanks!

 

[justalayman]

First, did you not read your policy when it was mailed to you?

Whether the injured parties can come after you after the payment is based on what, if any, release they sign. If the injured parties sign a release relieving you of any further claims (and this all is speaking to only property damage claims), then they cannot initiate a sustainable suit against you. If they accept the money and sign no release, there is nothing prohibiting them from suing you. Given your insurance is paying out your max benefits it could actually end up either way since the insurance company is obligated to pay out as your policy requires and their involvement is ended.

Is the amount listed ($4410) what your insurance company is paying to car 2 insurance complany?

The fact the other insurance company does not have to sign a release for your insurance company to pay the $4400 and the fact there is some sort of release involved suggests that yes, the release is to protect you. You have to realize your insurance company could just cut a check and be done with the entire matter, no release required.

You also have to realize that regardless of what you say, they can do exactly that.

 

[HighwayMan]

The damage breaks down as follows:
...
Car 2 - $4410 - they filed through their own insurance. Damage, storage and towing total was about $8000.
...

Yes, exactly what is the $4410? You seem to indicate that's the damage but that would mean that towing and storage come to $3590.

Can you clarify that?

 

[ecmst12]

If they sign the release, then you are safe. They may choose not to sign and sue instead. Then you'll be in trouble.