Refused to pay car insurance claim what happens now?

Question

My husband hit someone in his car while we were uninsured (I know I know I could kill him)

We agree we are responsible and recieved the damage cost from the insurer. It is about $2800 more than we can pay in one hit.

We offered a one off settlement of $1800 or $100 monthly installments until it is repaid. They said they would not even consider it unless we provided them with all our financial paperwork (loans credit cards payslips even child care costs)

We werent comfortable sending this so said we would go to an independant financial counsellor. They refused this and said they would escalate the claim.

What does this mean and what is likely to happen from here?

Answer 1

I'm not an insurance person, but I am in the car/credit business.  It depends on what state you are in. I imagine they could put a judgement on your credit, and possibly garnish your wages. Anyone can do that if they can prove you have a debt owed if allowed in your state. I am sure they can take you to court. It will be up to the judge as to what will happen from there. I recommend you putting your offers in writing so you can show the judge you are trying to pay what is owed. I imagine the judge could be pretty tough on you, but at least you can say you tried. Whatever you do, try to comply with the legal system or things will get worse.

Answer 2

i work in insurance in australia.

yes, an insurer will probably want to see your financial situation if you are offering them instalments.  the insurer basically wants to get their money back as quick as possible, so if your paperwork shows you can afford  MORE than $100 a month, they would ask for more.  if you are offering to pay off a debt by instalments, the insurer would expect the amount paid back in full.  offering a partial settlement only works if you offer it to them as a lump sum!

if they 'escalate' a matter, that means that it will be put in the hands of a collection agency and interest will start to accrue on the costs.  the collection agency will start hounding you and sending you letters threatening court action.  if you ignore the collection agency, then the insurer/collection house can ask that the debt legally be recognised by a court as money owed to the insurer by your husband and this, once recognised, gets put on his credit rating as an unpaid debt which will show for any future loans or mortgages/refinancing.  if you still refuse to pay, the insurer can get a court order of seizure of goods.  it's unlikely to go this far, but that is what CAN happen.

Answer 3

If the car can be driven,get the owners to get at least three quotes.Your the ones who are paying,so pick the cheapest.Don't be bullied by the insurance company.You've shown the intention to pay.Come to an agreement with the owners of the car if you can.The insurance company doesn't even have to be involved.Make sure whatever you decide is drawn up legally,no verbal! Above all,Don't Worry.

Answer 4

I have met this kind of situation before,here is the place I found useful.http://carinsurance.expertsupport.info/a...

Answer 5

I'd send the necessary paperwork, or better yet ask if there is a physical office you can take your paperwork to, you may feel a little more comfortable face to face with one of their reps.

Answer 6

Sounds like you should pay a lawyer a small fee to send them what I like to call a "nastygram".  Surely that would clear it up.  If you withdraw your offer and tell them they're getting nothing, they'll probably be more likely to accept your first offer, maybe even a little lower.  This is tricky business, though, so find an attorney to help you.

Answer 7

You don't pay, they put a garnishment on your wages.  Furnish the records they are asking for or get a loan and pay them.