Can I still be sued even if my insurance company settles?

I live in Michigan,a no fault state. My daughter was involved in a minor
accidentno injuries in a parking lot. It was her fault, but the other car owner
did not have full coverage on his car. he contacted my insurance company and
wanted 3800 in punitive damages for his car. The max he can get from my
insurance company is 1000. If he takes the 1000 from my insurance can he still
come after me at a later time and attempt to get more money from me in small
claims court?

Asked on April 28, 2016 under Accident Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, he can still sue you is he did not sign an agreement (a settlement agreement) stating that he would accept the payment as payment in full of any and all claims and not sue; in the absence of a settlement agreement, a plaintiff (person suing) can take the money, apply it against the amount owed him, and sue for the rest or balance. E.g. if he can prove that you did $3,800 of damage to his vehicle (or otherwise cost him $3,800, such as in towing charges, lost wages, renting a replacement car while his is fixed, etc.) and your insurer pays him $1,000, he could potentially get the other $2,800 from you, if he did not sign a settlement agreement prevening him from doing so.

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