Traffic Accident - My spouse hit another driver...what can they sue us for?

Question

Unbelievable. It was a minor accident at the stop sign.

My spouse rear ended her car. She walked away and the damages to her car were under $500.

Yet, now they want to come after us personally, beyond what the insurance will settle for.

Can they do that?

What can they come after us for?

The car and insurance are in my spouse's name but we have joint bank accounts (and some not joint), and our house (joint), and some savings in our kids names (minors).

Can they come after all of it...or is some of it untouchable?

How about future earnings for me and my spouse?

Thanks!

Answer 1

Try to relax a bit. Less than 5% of claims every get settled with money coming out of the policyholders pocket. Your insurance company has a duty to do everything they can to settle the claim under your policy limits so you are not exposed to paying out-of-pocket. From the info you give the injury claim is not likely to be large. Keep in mind that the "injured person" and/or their scumbag lawyer can ask for any amount. Whether they get it or not is an entirely different matter.

Talk to your claim adjuster to see where they stand on this injury claim. Ask them what they think it is worth and then you will have a better idea if the claim is worth more than your liability limits. This is not likely unless you have horribly low liability limits.

Good Luck

Answer 2

They can :come after you" for anything and everything.  Whether they win is another story.  If they do win, they can take almost any assets, including future earnings

Answer 3

If it's as you described, your insurance will give them $500, they will sign off.  

If they then decide to sue you, your insurance will supply you an attorney who will show the other party had minimal damage, and was paid in full for it, and that should be the end of it.

Insurance companies don't like fraud.

Answer 4

they can come after you personally if their damages are shown to be over some limit your insurance company has set (like $100,000 in my case) but that is highly unlikely.  

in the end it will just increase your insurance bill.

Answer 5

What they can come after you for, is going to depend on your state laws.  

Usually, if they settle with the insurance company, the insurance company makes them sign an agreement, that they can't go after YOU for anything else (assuming that it's YOUR insurance company).

Typically, they'd go after pain and suffering, bodily injury, lost wages, property damage, services they have to hire because they can't perform them, etc.

If you are living in a community property state, anything you and your spouse own, is touchable, except retirement accounts (ira or 401K).  The kid stuff isn't yours.  If it's NOT a community property state, anything your spouse owns is touchable, except retirement accounts.

That includes future earnings.  

So, step one.  Don't panic.  Let your insurance company handle this.  That's what you have them for.  Don't talk to these people directly, no matter WHAT.    Step two.  Sit down with your agent, re-evaluate your limits, and increase per your agent's recommendations.  Buy a personal umbrella liability policy.

And don't worry too much.  If she only had light bumper damage (which, btw, is more likely to be $1500 than $500), it's highly unlikely she had any serious bodily injuries.