Expert: Richard Hixenbaugh - 3/3/2009

Question
My husband got into an accident in May 2008. He t-boned the oncoming car (his fault)and he was neither drunk nor speeding. His insurance paid about $15K for the damages to the car and $20k for medical bills. There were three people in the other car, and now all three are filing suit for damages (one person $60k, one person $20k, and one person $40k). My husbands insurance company stated that they would handle the suit, however I am afraid that if the insurance were to loose, then we would end up having to pay the damages. We just purchased a new home and we have an infant. Can these people still sue us even though my husband's insurance company alreadypaid them for damages? what will happen if the insurance company is unsuccessful in fighting this suit?

Thank you for all your advice.

Sincerely,
Paola

Answer
Hi Paola,

Your insurance company only settled with one of the four passengers, so yes they can still pursue the claim. Even though a law suit has been filed it is unlikely this will ever get to court. The attorneies who filed the suit just do that to try intimidate your insurance company. Your insurance company will work with them to get each of the claims settled before it actually goes to court. If there is any problem your insurance company will notify you.

I hope this helps
Richard Hixnebaugh