I was involved in a car accident where I rear-ended a man, but he seemed fine at the scene, joking with the cops for about an hour. Now, the next day, my insurance company (Geico) informs me that he’s filing for bodily injury claims.
I have coverage with a limit of $100,000 per person and $300,000 per accident, but I recently heard a story about someone being sued for $2.9 million due to “future pain and suffering.” I mentioned this to my mom, and she suggested that I withdraw all my savings to make it appear as if I have no assets—claiming it was to pay off a debt to her.
What should I do in this situation?
(Note: My mom is an upper-middle-aged Asian immigrant, and this is her suggestion.) I’m located in California.
It’s understandable to feel anxious after an accident, especially with the other party filing for bodily injuries. However, withdrawing your savings to avoid potential liability may not be the best approach and could lead to legal complications down the line. Here are some steps you might consider instead:
Communicate with Your Insurance: Since you have insurance coverage, reach out to Geico and keep them informed about the situation. They can advise you on the best next steps and handle most of the claim process.
Document Everything: Make sure to keep a detailed record of the accident, including photos, police reports, and medical records related to the other party’s claim.
Avoid Taking Rash Actions: Withdrawing your savings might be seen as hiding assets, which could lead to more serious legal issues. Courts can view such actions unfavorably, and it won’t prevent the other party from pursuing a claim against you.
Consult Legal Counsel: It may be a good idea to speak with a lawyer who specializes in personal injury or insurance claims. They can provide guidance tailored to your situation and help you understand your rights and obligations.
Stay Calm: It’s common for people involved in accidents to feel overwhelmed, but remain calm and pragmatic. The situation may not be as dire as it appears.
Understand Your Coverage: Familiarize yourself with your insurance policy and what it covers regarding bodily injury claims. Your policy may be sufficient to handle the claim without involving your personal assets.
Ultimately, having legal and insurance professionals guide you through this process is your best bet for navigating the situation effectively.