Expert: Bennie719 - 4/7/2008

Question
Hello, my daughter was in a minor accident in a car that is registered to me.  We live in Michigan.  She stopped at a stop sign, then proceeded because the oncoming car had on her turn signal (but decided to not turn).  So, my daughter was at fault.  

We normally carry Horace Mann Insurance and my daughter had set up an account with them with the understanding that her monthly payments were going to be taken out of her bank account.  Well, she never signed the paperwork to authorize that payments sp her insurance was cancelled.  The other party involved in the accident had State Farm Insurance.  We have been getting letters from a collection company asking us to pay $5,000.00 in damages.  My daughter said the car was very old and damaged.  About a 1990.  I wondered how they cam about with such a high ammount.  Especially since there was minimal damage to the car (a front bumper was dented in).

Is there anything I can do to lower this amount?  I called the collections comapny already and they said 'no'.
Pamela

Answer
Hi Pamela,
If your daughter does not live with you, does not have full time possession and use of your car and this was just an occasional situation where you had loaned her the car, then this accident will possibly be covered by your insurance company.  If those circumstances apply, you need to immediately file a report with your insurance company.

Otherwise, you and your daughter will owe the full $5,000 that you are being billed.
You do have the right to ask for an itemized breakdown of the amounts they paid for damage and amount paid for injury plus the year, make and model of the other car.

If it winds up that you have to pay, keep pestering the collection agency for a lower settlement.  They do have the right to lower the amount and will do so if it appears that is the only way that they will be paid.

I hope this information has been helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area