Expert: Richard Hixenbaugh - 9/25/2009

Question
I was in an auto accident in Pennsylvania in May 2009. I was found at fault, but was not issued a citation at the scene but received one in the mail a week later. My coverage is 5000 Prop. 15/30, through Nationwide.

I rear-ended an Escort that in turn rear-ended the back of an SUV. The SUV's claims have already been taken care of by the original adjuster.

The Escort chose to be represented by an attorney who is a "family friend". They called him immediately.  Their personal injury claim has just (within the past 2 days) been passed to an adjuster who deals with people who are represented.

I am not taking this lightly, but I feel that this situation is going to be milked out forever and I will most likely end up getting sued.  I have no real assets at all. I don't even have a checking account.  What steps should I take from this point?  I am not sure what happens from this point. Do they have to wait for a settlement offer before they can sue? I understand that I will have a defense lawyer thru the insurance company, but I am not sure what the process is before it could land on me? And if I have to pay, what will happen because of having no assets?

The new adjuster just called me today, and now I am a nervous wreck. The only thing he really told me was that if I end up getting served papers, to contact him right away.  Any advice you could give would be great.  All I can picture is being in a court room and being sued for thousands of dollars....

Answer
Hi Katie,

Relax. There is really nothing you can do at this point. Your insurance comapny will do every thing they can to get this settled within the limits of your policy. If that happens the injured party will sign a release form that will release you from any further liability.

If the injured party has serious injuries that your $15k policy limit will not cover, it is possible that they may sue you, in which case as you said your insurance company would provide a defense attorney but only up to the amount of your coverage. The injured party's attorney will likely do a background check and asset check on you. When they do that and find that you have nothing for them to come after they will likely drop any suit. If they do continue with a suit it will likely be so that can can pursue additional money through the underinsured motorist coverage of the injured persons own policy. Even if all of this happens about the worst that can happen is that they get a judgement against you.

In the mean time just let your insurance company handle it. It will likely all go away.

I hope this helps
Richard Hixenbaugh