I was in a 2-car accident in Virginia 3 months ago, both drivers were injured. My insurance co (Liberty Mutual) took total liability after police issued me a ticket. The other driver did not get a ticket. Liberty Mutual is now in the process of reviewing the other party's medical bills to determine payment. Just last week I went to court for the ticket I got. The judge dismissed my charge mostly due to the other driver's own testimony. I'd like to know if my insurance company has the option to re-negotiate with the other driver's insurance (Allstate) to change the liability to a different term (such as 50/50). I was concerned that if my insurance co is not liable to pay the other driver at all (if I tell them about the court dismissal and both companies reach a new term), and if the other driver sues me, will my insurance still provide legal defense for me at their cost? I thought if my insurance doesn't need to pay the other driver under my liability coverage, it doesn't serve them any good (save them $) by defending me in court. I'm trying to decide if I should tell my insurance about the court dismissal of my charge. Could doing so hurt me by losing potential free legal defense in case of a civil suit from the other driver? She was more severely injured than I.
Should I Tell my Insurance Co My Charge Was Dismissed?
- Thread starter vasy
- Start date
- 29,487
Seems like a silly question to me.
Why wouldn't you want your insurance company to know your charge has been dropped? If the charge has been dropped because of the other driver's testimony, how's she going to sue you?
- Thread starter
- #3
Seems like a silly question to me.
Why wouldn't you want your insurance company to know your charge has been dropped? If the charge has been dropped because of the other driver's testimony, how's she going to sue you?
Understood your point. Do you know if it's a general or common practice for insurance companies to re-negotiate liability after a new evidence (such as dismissal of my charge) emerges? Is it possible at all? If not, there is no point to tell my insurance company.
- 29,487
I'm not a P & C guy, but common sense says of course your insurance company will renegotiate...why would they want to pay a claim if they don't have to? Also, if you don't tell LM that the charge against you has been dropped, what do you think that'll do to your rates with LM?
- Thread starter
- #5
I now have this new but related question for everyone reading this thread. In Virginia (not a no-fault state), if an accident is determined to be liable to both drivers involved, whether 50/50 or 40/60, how do the 2 insurance companies handle payment for damages and medical cost reimbursement? Will both insurance companies pay part of the bills, or they don't pay either driver at all and let the drivers handle the money matter privately?
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I think my rates will go up either way. The best I can get is to have the other driver share some liability with me. It won't be totally her fault.
I now recall a law saying (in Virginia) if a driver is at fault in an accident (even 1%), this driver can not sue the other. Can anyone confirm this?
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I think my rates will go up either way. The best I can get is to have the other driver share some liability with me. It won't be totally her fault.
I now recall a law saying (in Virginia) if a driver is at fault in an accident (even 1%), this driver can not sue the other. Can anyone confirm this?
- 29,487
- 232
It depends somewhat on local (state) law....sometimes even more on how the individual insurance companies interpret that law:
Comparative Negligence = split the costs, much like the 50/50 you described
Contributory Negligence = you might not escape it if you were even 1% at fault, much like you described
Much of that negotiation and settling between insurance companies happens behind the scenes and after the fact though.....the faster it can be settled the better. I'm not all that familiar with VA.....but it sounds like they are Contributory from the OP, which means everyone is at fault somehow, which is kinda like no fault cause we're all making Collision claims and no one accepts liability. Ever.
And yeah, unless you overpaid for that accident forgiveness stuff, your rates are going up. They don't care how much you paid over the last however many years with no accidents - they need to make their money back on this one.
Comparative Negligence = split the costs, much like the 50/50 you described
Contributory Negligence = you might not escape it if you were even 1% at fault, much like you described
Much of that negotiation and settling between insurance companies happens behind the scenes and after the fact though.....the faster it can be settled the better. I'm not all that familiar with VA.....but it sounds like they are Contributory from the OP, which means everyone is at fault somehow, which is kinda like no fault cause we're all making Collision claims and no one accepts liability. Ever.
And yeah, unless you overpaid for that accident forgiveness stuff, your rates are going up. They don't care how much you paid over the last however many years with no accidents - they need to make their money back on this one.
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