My 17 yr old was involved in a fatality crash. must my insurance co defend me in a civil case?

Question

the accident involved my daughter and a bycylist who stuck her car. it appears she wont be citied for a crime other than the failure to yield. The victims family has been kind but have also retained a personal injury lawyer. I believe the insurance company is prepared to pay the max liability already but they advised me that it will probably be insufficient. even though they're paying the full liability amount will they still defend me if a civil case is filed?

Answer 1

This is very jurisdiction specific, and the indication of an excess situation means that you should likely consult with an attorney, of your own choosing, at your own expense.  That said, and without giving any legal advice, generally the language found in a policy that states that the duty to defend ends with payment of limits is simply not upheld by the various states.  Typcially, the duty to defend is deemed to be separate and broader than, the duty to indemnify (pay).  The carrier is usually expected to attempt to exercise all reasonable efforts to settle the case at or within their limits (in exchange for a full and final release).  If the bicyclist also owned an automobile, then they likely have UIM coverage that may provide additional limits.  If this is so, and if you are felt to be judgment proof (or have limited assets) the estate (familly) may agree to accept your limits in exchange for a release and then proceed against the UIM coverage, (with their carrier's approval).  Again, a fatality has the capability of being a case of very significant value; you need to consult with a private attorney at your own expense, to fully assess your rights, in my opinion.

Answer 2

Insurance is not there to defend you in court.  Their job is to asses damage and adjust the cost.  It's your responsibility to get  legal help if needed.  The insurance company can and will give up any evidence as needed.  Now just a little curious, but you said the cyclist hit her car.  Did she run a sign or light or did she actually have the right away and the cyclist failed to stop?  Where I am they have to obey the same laws as motorists and can be charged with hit and run just the same as well as fleeing an accident, etc...

Answer 3

I like how you worded that the bicyclist struck your daughter's car.  If that was the case then your daughter wouldn't have been cited for failure to yield.  It sounds like your daughter struck his/her bike.

Anyway....your insurance company once they pay the full liability amount doesn't have to represent you in court.  They fulfilled their obligation which is....

1.  Pay for damages possibly up to the FULL amount of YOUR COVERAGE.

In other words you had an option to select more coverage in the beginning, if you didn't choose as much as they (plaintiff) are suing you for then your insurance company is only required to pay the max stated in your policy.

You do have other options, home owner's insurance could potentially help you (believe it or not).

Also just because they sue your for millions doesn't mean they'll win the case.  

Most insurance companies will only go to bat in court when they don't feel you were wrong and therefore don't want to pay the outrageous amount being asked for, or they feel like they shouldn't have to pay a certain amount.  

If your policy states you have coverage up to $100,000.  And they're suing you for $200,000 your insurance company might not want to pay $100,000 because they don't think it's fair.  THen they would go to court.  Not to protect you, but to protect them.

However if you're policy has coverage up to $100,000 and they're suing for $200,000 and your insurance company decides it's in their best interest to settle for $100,000 (the maximum amount your policy covers) because they know going to court could cost them more, then they'll just do it.  Then you're stuck dealing with the additional $100,000 lawsuit.  The insurance company no longer has an obligation to represent you. They fulfilled their end by fulfilling your policy coverage amounts.

Answer 4

Sorry to hear about your situation, if you have an umbrella liability policy they will defend you in court. If not you need to get a lawyer.

If you don't have umbrella liability you need to get one now. This type of coverage could be the most important piece of insurance anyone owns.

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 per year you can buy a $1 million personal umbrella liability policy

http://www.iii.org/individuals/auto/b/um...

Answer 5

You should probably ask your insurance company and consult an attorney.

Answer 6

Nope.

They will only pay the maximum coverage under your policy.

All claims above that are your responsibility.

Claims and lawsuits will come out of the woodwork.

Sorry.  I know the feeling.

Answer 7

What, you want to pay for your defense yourself, out of pocket, AND pay for any possible judgement out of pocket as well?

You can ALWAYS tell your insurance that you want to handle this yourself.  But then, you handle it yourself, regardless of the outcome.  You can't come back later and present them with a bill and expect them to pay anything.

The citation is pretty irrelevant - lack of a citation does NOT automatically mean she's not at fault.

Yes, they'll defend you.  You'll probably lose in court, an award will be decided on, your policy will pay the limit, YOU will be held responsble for the remainder of the award.  

I hope you don't own a house - they'll take it.  They'll also be garnishing wages, if you can't write the check for the difference, until the balance is paid - which could be forever.

If the victim's family accepts the offer from your insurance company, they'll have to sign off to not sue you for anything else.  So they PROBABLY won't accept the offer - they'll try to get more.  Assuming you have really low limits - like under $100,000.

Answer 8

Too hard to answer - depends upon what insurance company, your level of coverage, state rules/limitations, etc.  You need to talk to a real lawyer.

Answer 9

The insurance company does not defend in criminal matters. So they can't help you with any criminal charges.

Their defense obligations depends on the laws of your state and the language in your policy. The person who can best answer this question is the adjuster handling your claim.

It is very common for fatality claims to get an attorney. Although, attorneys are not needed for most claims.....fatalities usually is an exception.  The process of settling a fatality claim is involved. Often the family does not understand why the adjuster needs the info they need and do things they way they do. It helps the family to have someone they feel is on their side who can tell them what is going on and that the adjuster is not asking for this info just to bring them more pain.

So an attorney being involved does not necessarily mean a bad thing in this case.

Unless you have assets -- something they could take to satisfy a judgment, most fatality claims do not go to suit.  This sounds harsh.....but you can't get blood from a turnip.  If you don't have something to take....it's not worth the expense of filing a law suit.

Usually the attorney gets the family to sign a special release for the policy limit and then he files claims against any other policies that may apply (such as under-insured motorist).

In my state- this special release is called a Covenant Not to Execute. This release may be known as something else in your state.

This special release ends the claim against you and your family but allows the deceased's family to pursue anyone else who may be at fault (such as the city for a faulty road design etc) or any other insurance policies (such as under-insured motorist coverage).

The insurance company will send you a letter letting you know that your policy limits are not sufficient enough to handle the claim. This is pretty standard.  It's not meant to alarm you-- just let you know what you already know....that its a bad situation and your policy limit is probably  not enough.  Unless you have a million dollar umbrella policy -they are probably going to send you this letter. They have to put you on notice that the other person's damages exceed your policy limit.

You will probably get a letter (or it may be in the same one) that tells you that you have the right to hire an attorney of your choice - at your own expense. You do have that right. This is not to tell you to hire an attorney - just let you know that you can if you want to.

If a law suit gets filed, the insurance company will hire a competent attorney to defend you (according to your policy)  so you don't have to hire an attorney on your own. The insurance company just wants to let you know that it is your right to do so if you want to.

In my experience -very few fatality claims go to law suit....and the few that do...usually get settled out of court.  And most have not had a law suit filed.

If it looks like a law suit is about to be filed....the insurance adjuster usually calls you or sends you a letter to let you know to be on the look out for the law suit and what to do when you get it.

I know you are stressed out about it. I'm not going to tell you not to get stressed. But in my experience, very very few fatality claims go to suit.  Most likely, this will settle outside of court.

This type of claim is hard on every one involved -- the family of the deceased, your daughter and your family.  I know that if your daughter could take out a magic wand and go back in time and prevent this....she would. This accident does not mean she's a bad person. She made a mistake. She's not bad or evil. She's just a young person who made a mistake.

  I encourage you to talk to your adjuster. Let him/her know your concerns - ask any question you have.  And if you have assets that need to be protected - be sure to let the adjuster know. The adjuster may have already asked you about your financial situation. It's not to be nosy - it's so that we can know what the situation is.

A good adjuster will take the time to walk you through this process.

I know you will worry anyway....but stay in contact with the adjuster.  Your adjuster can tell you how likely they think a law suit is.  Again, in my experience, most fatality claims don't go to suit....but I don't know enough about your situation to tell you specifically.

I am sorry you and your daughter are going through this.