I am recently being sued by an insurer for a car accident happened last year, what do I have to do?

I was involved in a car accident a year ago. I purchase the insurance the day before the car accident but the insurance company claimed they did not receive it until the next day so I am on my own now. The person contacted me and claimed her car was totaled and she wanted at least 5k from me. I paid her and both signed a contract stating that she would not sue me afterwards. However her insurance company recently sue me for 15k because they said the car was worth 15k and that is the amount they paid her. What do I do now?

Asked on December 10, 2011 under Accident Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you are being sued under a subrogation claim by the other driver's auto insurance company for the $15,000 incurred by it for the car that was damaged, you should consult with a personal injury attorney about the situation you are now in.

If you actually paid $5,000 to the driver of the other car for a release where she would not be suing you later, possibly the release may operate as a total bar and defense regarding the lawsuit that you are now in. I would also tender the lawsuit by the insurance for the other driver to your own insurance company as a precaution.


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