Being sued by a car insurance company, what do I do?

Question

At first, I settled with an insurance company, gave them a lump sum. An year later they contact me again wanting more money. They later send the matter to collection, and I refused to pay them, because we had already agreed on the settlement. Now I am being sued. What can I do, other than paying up the money?

I had no insurance at the moment. :(, something I regret.

Answer 1

Why are they suing you?

What did you do wrong?

Answer 2

I own a company a company that represents insurance companies against uninsured people. I'm having a difficult time figuring out what is going on here, but I'll throw out a couple of ideas.

Was the original lump sum payment only for car damages? I have seen a few cases where the car damages are settled up front and then a second demand for payment comes along after the insurance company settles a UMBI (Uninsured Motorist Bodily Injury) claim after the lump sum was paid.

Now this could be all legit and legal DEPENDING on what paperwork you signed at the time of the original lump sum payment. Our company would have provided you a modified release stating that the lump sum was for car damages only and that we WILL be coming back for reimbursement of injury money.

If you weren't provided a release when you paid the lump sum, things will get messy.

I would suggest that if you haven't already done so that you contact the lawyer that is suing you and make sure they know about your previous payment. Ask them to provide proof that you still legally owe anything on this claim. The attorney might not even know that you made a previous payment.

The whole key is what did the original lump sum payment cover and what did any accompanying paperwork say.

Good Luck

Answer 3

I am assuming you have the original settlement papers.  I think you need to take them to a lawyer and have him/her handle it from here.  Is it possible the settlement you originally signed provided for two payments?   An attorney who specializes in insurance claims is the way to go.  Good luck.

Answer 4

Consult an attorney.

I was a shoe salesman.

Everyone else works for Walmart.

Answer 5

Did you get that settlement in writing? If you did, take it with you to court. If you didn't, you'll have to pay. Normally when there is a settlement the company will mail you the agreement.

Answer 6

There's no getting around it  - get a lawyer.

Good Luck...

Answer 7

Hope you kept the receipt that showed the settlement...

I would recommend getting legal advice from a lawyer and not from some hot-shot Yahoo! know-it-all.