Uninsured is 3rd in Car Pileup

[mach1maddie]

What is the name of your state? California

My son was the third person in a recent 3 car fender bender on the highway. He'd let his insurance go due to lack of income and financial distress. He wants to pay back the insurer what is due but they won't send him the actual listing of repair costs. They want him to sign a statement agreeing to payments he is unable to make. What should he do? (He did get himself reinsured and has learned a strong lesson).

 

[Zigner]

If this accident was for over $750, he should have reported this to the DMV. He should be prepared to lose his license for a year.

He should send a letter, Certified, Return Receipt Requested, asking for a detailed billing for the repairs. I would send a copy each to the owner of the vehicle (the claimant) and the insurance company.

 

[mach1maddie]

Yes, the amount was higher than $750 and he did report it. He is being fined $750. by the state and they are not currently seeking to remove his license because he is a full time student and also working almost full time in a low paying job. The company asked for $3200.00 while providing no additional information. I will offer your suggestion about putting it in writing and expressing his desire to resolve this. He knows he was was wrong to be uninsured but couldnt see past his expenses and wants to make this right, but within reason. He only has so much income and is paying student loan debts.

Thank you.

 

[Zigner]

Yes, the amount was higher than $750 and he did report it. He is being fined $750. by the state and they are not currently seeking to remove his license

The suspension is mandatory. It WILL be suspended.
Your son will be able to apply for a restricted license.

 

[Shay-Pari'e]

Yes, the amount was higher than $750 and he did report it. He is being fined $750. by the state and they are not currently seeking to remove his license because he is a full time student and also working almost full time in a low paying job. The company asked for $3200.00 while providing no additional information. I will offer your suggestion about putting it in writing and expressing his desire to resolve this. He knows he was was wrong to be uninsured but couldnt see past his expenses and wants to make this right, but within reason. He only has so much income and is paying student loan debts.

Thank you.

There is no *Within Reason* , as he was not insured. The non existant insurance company is not a player here. Your son is on the hook for his own damages, and possibly others if he is found at fault.

 

[ecmst12]

He does have the right to receive an accounting of everything the carrier paid out before paying. They do not HAVE to accept a payment plan - They could just take him to court now and get a judgement. If they are willing to work with him, then he should pay it off as quickly as he can.

 

[mach1maddie]

I agree with both of your posts. Entirely. So does my son. He is anxious to get it agreed to and paid. The insurer wanted him to sign a statement and agree to $100.00 per month until paid. He doesn't currently have $100 left over at the end of the month. They also asked for 800 up front and said they'd reduce his total amount if agreed to.

I told him a judgement would mean they'd garnish his salary. If he doesn't make his current insurance payments as well as his payments for his car, then he won't be able to have the car and go to work and obtain any income to garnish. Should he offer the best he can and hope for this or simply go to court? He has no assets and about 5K current debt with another 20K school debt building up as we speak.

Should he quit school and work full time until this is paid off? Is he obligated to do whatever is necessary?

 

[mach1maddie]

And YES, this was a huge mistake on his part. We were furious, as parents. Being responsible and following the law is one of our foremost emphasis'. Thought we'd taught him better, but what can you do when they become independant while still immature...

 

[ecmst12]

Honestly, it doesn't sound like he makes enough to have to worry about a garnishment right now. If he can avoid a judgement, that would be best for his future credit - he won't be a broke college student forever, and a judgement is good for a long time. But he can only do what he can do.