Reader’s Question:

My girlfriend rear ended a vehicle last month month. She did not have car insurance in Montgomery, Alabama. The insurance carrier of the other driver sent her a bill of $10,000. I thought that this should go through the court system first?

Randy

Montgomery, AL

Since your girlfriend rear-ended a car then it would seem that the accident were her fault. Since she was driving without insurance at the time of the accident she is being held personally responsible for the damages she caused to the other driver.

The other driver appears to have made a car insurance claim with their insurance provider and was paid out for their damages in the amount your girlfriend is being billed for, the $10,000. The insurance provider is now charging your girlfriend for the monies they paid out, This is know as subrogation. They are permitted to do so since your girlfriend was at fault in the accident and thus can be held liable for the cost of the damages she caused.

The insurance provider can request that your girlfriend pay since she was at fault in an accident and does not have car insurance in Montgomery, Alabama and therefore does not have a car insurance provider to reimburse the other driver’s insurance carrier for the monies they paid out. If she does not pay then the insurance provider can then take her to court to seek a judgment against her. If your girlfriend chooses to ignore the payment request then the insurance carrier will likely take legal actions against her.

Tags: auto insurance claims, car insurance, driving without insurance