Can my insurance company sue me for money that they overpayed me?

Question

they sent me a check for 10 times the amount that it should have been but we had no clue, then a couple of months later they called and said that they had made an error and they wanted their money back. Now they are saying that they are going to file a lawsuit for the money they say we owe them

Answer 1

How could you be overpaid by a factor of ten and have "no clue"?

Answer 2

Yes. It is money that you do not have coming to you.

Answer 3

They can sue you and will do so. I see it all the time.

They will win easily and it will cost you even more because the judge will award them attorney fees, court costs and will probably add interest to the amount owed.  

Assuming you already spent the money I would suggest that you offer to make monthly payments to them to save the additional costs I mentioned above.

Good Luck

Answer 4

Of course they can.  And they will win.

Its difficult to believe that you didn't know that your check was 10 times more than it should have been.  A judge will probably have a hard time believing that too.

The others are right - you need to start negotiating with the insurer now if the money has already been spent, because you'll definitely lose in court *and* have the added expense of attorney and court costs.

Answer 5

Yes, and they will!

Answer 6

Of course they can sue to collect such overpayments.  They paid you TEN times what you were due and you 'had no clue' ??

Please.  Some of us didn't fall off the tuna boat just yesterday.

Answer 7

Yes, they can.

Answer 8

Yes they can.

and ....Yes they will.

If you have already spent the money....call them up and set up a payment plan to re-pay them. They will accept monthly payments - interest free.  As long as you make your payments on time every month-- they will not take legal action.

If they sue you - you're going to end up paying legal fees etc on top of what you already owe.

**I also find it hard to believe that you got a check for 10 times more than you were supposed to and had no clue until now.  If it's regarding property damage-- you get an estimate with that check that tells you how much you are getting paid.  If it's an injury claim - you signed a release that said what the correct amount was.  

I suspect - you got that check - knew it was an error - it was too much. Cashed it hoping they would not catch it.   Well...they caught it.  Pay them back because they will sue. That ain't a bluff.  Especially, if the check is a 0 more than it should have been.**

Sorry.....don't buy the we did not know it was too much money excuse and a court is not going to go for that one either.

Answer 9

When you get a bill - you call...

When you get a check - you DON'T call?

hhhmmm - maybe you should've called your agent & asked why you were getting more $ than you were entitled?