Expert: webfoot - 8/11/2006

Question
I was involved in a motor vehicle accident in PA in late April. My adjustor came out to the scene of the accident and said that I am probably technically at fault, however, due to the signage and traffic patterns he is going to fight it and try to get the other guy's insurance company to pay for my car (it was already fixed and covered from my collision on my policy). The police did come to the accident but only because they were right there for something else anyway. There was no police report filed and it was an "information only exchange".  My adjuster is denying their claim to pay for the other driver's vehicle. I have never been involved in an accident before, so I am really confused as to the process. My insurance adjustor did tell me that they will both end up going to arbitration since they are denying each other's claims. My questions are:

1. So they go to arbitration. What if the artbitrator sides with me? Can he sue me after this?

2. If he can sue me, will I have to pay him out of my own pocket even if his expenses don't exceed my insurance coverage limits? Will I have to pay for a lawyer?

3. Can I sell this car since it is already fixed and pictures had been taken by my insurance adjuster?

Answer
Assuming that we are not talking about damages that would exceed your policy limits, you have nothing to worry about.  If your insurance company prevails in the arbitration then that should be the end of it. Generally, they cannot get arbitration unless both parties agree to make it binding.  If the other company wins, then your company will pay the damages up to your policy limits and in most cases, even settlements beyond that will be tossed in order to get the limits alone.  In other words, better to settle for a guaranteed (example)$25k check from an insurance company than trying to pursue an individual for a little more.
As long as we're not talking about serious injuries, DUI very high $$ vehicles etc., don't worry about the policy limits issue.

I don't see any reason why you shouldn't be able to dispose of the vehicle as at this point, its existence has no bearing on the facts of loss.

As the arbitration process is going to utilize the statements that were already taken, you'll likely have little to no involvement.  My advice would be to relax and let the people that you've paid your premiums to worry about it.
Good luck!