Can a car insurance company sue me for damages if my insurance company already paid them $5000?

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Can a car insurance company sue me for damages if my insurance company already paid them $5000?

I was in a accident in a snow storm and was the driver who received the ticket. I had basic coverage and was severely injured. The other driver was not. Both cars were totaled. He hit mebut I skidded into his lane. I paid a failure to keep right ticket just to get it over with. Now, a year after the accident, I receive a letter from his insurance company asking me to pay the additional money that was not covered by my insurance company. My insurance company paid $5000. His company is asking for $1500 from me before they pursue legal action against me.

Asked on December 6, 2011 under Accident Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You can be sued by the other party's insurance if they paid out money to their insured (the other driver), you were at fault in causing the accident, and the insurer looking to recover you was not reimbursed for the money in question by your insurer. As long as you caused the accident, the other insurer can seek reimbursement from you of any monies or expenses they paid which have not been otherwise reimbursed. It doesn't matter if your insurer paid the injured party directly; in this case, the issue was what amount is the other insurer out of pocket, because they can seek recovery of that from an at-fault driver.


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