I was involved in a car accident where I rear-ended a pedestrian. The incident was minor, and the person I hit was joking with the police on the scene. However, I’ve just been informed by my insurance company (Geico) that he is filing a claim for bodily injuries.
I have insurance coverage of $100,000 per person and $300,000 per accident, but I recently read about someone who was sued for $2.9 million due to claims of “future pain and suffering.” I mentioned this to my mom, and she suggested that I withdraw all my savings now and say it’s to pay off a debt to her, so if I do get sued, it will appear that I have no assets.
I’m feeling overwhelmed and unsure of what to do next. Any advice?
(Note: My mom’s suggestion comes from her perspective as an upper-middle-aged immigrant. I’m located in California.)
It’s understandable to feel stressed and overwhelmed after being involved in a car accident, especially with the other party seeking bodily injury claims. Here are some important points to consider:
Insurance Coverage: You mentioned that you have a $100,000 per person/$300,000 per accident coverage. This means your insurance should cover most claims up to those limits. It’s crucial to communicate with your insurance adjuster and provide them with all the details.
Legal Advice: Before making any drastic financial decisions, like withdrawing your savings, it’s important to consult with a legal professional. A lawyer can help you understand your rights and responsibilities and provide guidance on how to handle the situation.
Asset Concealment Risks: Attempting to hide assets by withdrawing all your savings could lead to more legal trouble. Courts typically do not look favorably on attempts to conceal assets, and it may complicate your case further.
Documentation: Keep all documentation related to the accident, including police reports and any communications from your insurance company. This information can be vital if there is a claim or lawsuit.
Stay Calm: While it’s natural to be concerned, remember that not all claims lead to lawsuits, and the fact that the individual was joking with the police may indicate the injuries aren’t severe.
Monitor Developments: Keep in touch with your insurance company and be prepared to provide any necessary information regarding the claim. They will assist you in managing this situation.
In summary, avoid making hasty financial decisions and instead seek legal advice to ensure you are handling the situation appropriately.