My car insurer has informed me that the other party has hired an attorney, should I take my assets out of the bank as a precaution?
Question Details:
I have not yet been ordered to go to trial, but the letter that I received today from my car insurance stating that the other party has gotten an attorney has really scared me into thinking of putting my bank assets in my moms name? Is this foolish thinking? BTW I was faulted 80% and the other party was faulted 20%.
Assuming the damages do not exceed the amount of your coverage, your personal assets will not likely be in jeopardy. You might want to consult with an attorney to review your potential exposure.
It is generally not a good idea to start transferring assets in anticipation of suit as it may subject you to civil/criminal penalties. Your insurance carrier is obviously on notice of this impending suit and is obligated to defend you. This is why you pay premiums and have insurance -- let them handle the heavy lifting in defending you and you try to relax and move on with life.
If you have insurance, then they will hire an attorney for you to defend this matter. They probably even have attorneys that work for them. This attorney will be able to advise you how to proceed. It is not a good idea to start transferring assets around - doing so may subject you to additional civil and/or criminal penalties. In any event, the other party's damages may be covered by your policy limits, depending on how much liability insurance you carry and how serious the other party's injuries are. Good luck.
