Does my friend need a lawyer??

[mousey]

My friends daughter who is 17 was in a car accident a few weeks ago. It was her car and her insurance. She thought the intersection was a 4 way stop instead of a 2 way and hit a car and totaled her own car. No one claimed any injuries at the time and the police did not issue her a ticket or summons. Today, she receives a letter from a lawyer. She had no collision and probably barebones coverage. Can they come after her parents? Does my friend need a lawyer?

 

[RitaZ.]

My friends daughter who is 17 was in a car accident a few weeks ago. It was her car and her insurance. She thought the intersection was a 4 way stop instead of a 2 way and hit a car and totaled her own car. No one claimed any injuries at the time and the police did not issue her a ticket or summons. Today, she receives a letter from a lawyer. She had no collision and probably barebones coverage. Can they come after her parents? Does my friend need a lawyer?

Didn't she contact her insurance company after the accident?

 

[mousey]

Yes she did because her car was totaled (old car--no collision). This lawyer letter arrived today. I'm just curious if they can come after her parents as she is 17 and has no assets.

 

[lovemygoofy]

Well techinically a 17 year old is not considered an adult. Is the title of the car in the parents name? What did the letter from the lawyer say? Is her insurance company not paying out?

 

[mousey]

I didn't see the letter but I believe its notifying them that the driver of the car she hit (new car) must of retained an attorney. She hasn't been contacted yet by her insurance company. I believe the car and insurance were in the 17 yr olds name only. I'm just concerned for my friend as she just bought a house and is the breadwinner in the family. This 17 yr old goes to college and works 2 part time jobs so she has no money and I'm sure had minimal insurance coverage.

 

[Cheshire Figment]

Have her forward the letter to her insurance company. And she should not respond, let the insurance company respond; that is one thing premiums were paid for.

Also, the part involving the other party and thier car is covered under the liability portion of the policy.

And I know this is a terrrible thing to say, but she should get out and read her insurance policy. Anything on it she she does not understand she should find out about.

 

[mousey]

Good idea about contacting the insurance company tomorrow about the lawyer letter. I told her to get her policy out and go over it.

 

[Quacktatty]

It's the job of the insurance company to represent their insured.

 

[mamacatnv]

Step away from the letter and send it directly to the insurance company. Do not engage in any contact with the "victim" or their attorney. Scare tactic!

Even minimal insurance usually comes with some decent liabilty coverages, most states mandate how much a driver must carry.

She is out of luck getting her car repaired if she only had liability but that is what will cover the car and person she hit.

Often times with a teen driver they are on the parents policy and the auto policy is backed up with a homeowners policy, however these things vary from state to state.

 

[shortbun]

In Ohio any minor child is supposed to be covered by the insurance of the parent or guardian in who's home they reside. I'm pretty sure our laws here would allow that the parent be found responsible. Insurance is a state by state thing. I agree with the others, have her contact her insurance company and do not respond personally to the letter.

 

[shortbun]

It's the job of the insurance company to represent their insured.

And-you get what you pay for.

 

[undercovermom]

You've gotten excellent advice here.

I don't usually handle auto claims, but I do have a basic understanding of auto claims here in New York -- I see that's where the OP is from as well.

OP, I'm not sure who owned the car -- the mother or the daughter. If the mother owns the car and the daughter was driving it with moher's permission, both mother and daughter can be held responsible for any damages as a result of the accident. If the daughter owned the car, there are some very clever plaitniffs' lawyers who will find a way to bring the mother into the suit, assuming there's a need to do so -- e.g., the policy limits on the daughter's insurance are not sufficient to pay the damages. the fact that the daughter is 17 does not prevent a claim from being made against her, but the fact that she's 17 makes it likely a plaintiff's lawyer will seek to bring in the parents -- and their insurance -- if he's got a serious bodily injury claim.

auto liability insurance has two components. the policy indemnifies you if you have to pay damages -- and that includes both property damages and bodily injury claims. bare-bones coverage in NY is $25,000 per person/$50,000 per accident.

and the policy provides that the insurance company will defend the insured with respect to any claim seeking those damages. the company will investigate the claim and hire a lawyer if necessary to defend against a claim or suit.

in NY property damage claims and bodily injury claims are handled differently. if your car is damaged in an accident you can either have your own insurance company fix it -- and they will make a claim against the other driver on your behlaf -- or you can deal directly with the insurance company for the other driver.

bodily injury claims, on the other hand...well, no-fault coverage is mandatory in NY. you're supposed to use your own policy's no-fault benefits first, and only if you have a serious injury are you allowed to sue the driver of the other car. the auto insurer's claims department will know how to deal with this.

 

[DawnCt1]

Just want to add to all of this; Umbrella policies are one of the best deals in the insurance world. Everyone should have them.

 

[mousey]

Thanks for the great advice. My friend is going to contact the insurance company today and see what they say about the letter. I will post when she tells me what they told her. Thanks again everyone!