Expert: Rob Painter, Ase, CFEI, CAFATE - 5/8/2009

Question
Recently I was involved in an accident where I was at fault. I was at a stop light moving forward to close the gap when I bumped another car going no more than 5 miles per hour. At the scene, the police put on the report no property damage because neither of our cars had any scratches or dents. The lady I hit was pulled out of the car onto a stretcher complaining of back and neck problems. I live in florida and I only have 10/20 coverage. My insurance told me so far that the lady has gotten a lawyer and pretty much shes going to try to milk it for all its worth. (Shes on welfare, no job, single mom) Iam not aware if she has any injuries but from a single bump that didnt even mark either of our cars I'm sure she cant be too hurt. My question is... what is the worst possible outcome and what do you predict will happen?? I was told that once my bodily injury coverage runs out (only $10k) that she can come after me if she has injuries but I'm only 20 years old, I work as a waitress, go to school, live with my parents and have no assets. So what do you think the outcome will be? Whats the worst outcome also?
Thanks so much!
Shannon

Answer
Hello Shannon,

Unfortunately, it is difficult to opine in your situation without knowing all the details.

I will give you some very general information however. I understand that you don't have a lot of money and what you will need to do is let this play out for a while. Your insurance company is going to look out for you for the first $10K.

There are many crooks out there to lazy to work that will claim soft tissue injuries and the reason is because it is hard to prove.

If I were you, this is what I would do. If this person is seeking more than $10K, then it is time for you to get a P.I. and an attorney.

Check her background (easy to do these days) and see if she has pulled this before. It should be very interesting for her claim being she is on welfare and does not work. She can't claim future lost wages because if she was on welfare, she wouldn't work anyway. As for injuries, I would follow up on the treatment she received. If it is just to a chiro, her claim may be looked at with more scrutiny.

If she does have surgury, I would be looking for pre-existing damage she had to her body before the accident. Could be she pulled this before which makes her damaged goods and causes question to the claim.

Now, not being racist I will use the term that insurance companies used in fighting fraud "Nigerian auto fraud." In this scenario, these people had doctors and lawyers lined up for fake injuries to scam the insurance company. It's very common. Many articles throughout the insurance industry were written about these matters.

Now, your insurance company will do research on this person as well because they have to defend you to the $10K.

I smypathize with you. I understand your fear about this ruining the rest of your life. This is a catch 22 because if you had higher limits, they would have just gone for more money and you would be in the same situation.

I doubt very much that a judge would let someone with no income have a windfall at your expense.

All you can do is wait and see where it goes.

Rob