What to do about a subrogation claim being made against me?

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What to do about a subrogation claim being made against me?

I was unisured. I hit another vehicle. There was no accident report. Their insurance paid (via uninsured motorist insurance), now they are subrogating against me to collect. The insurance company turned the claim over to a collection agency, who is now demanding payment from me. Can they report me to any credit reporting agency if I do not pay? Or, must they first sue me to get a legal judgement proving that I was at fault in the accident? Aslo, if I dispute the amount of the damages, what should I do? Finally, can I ask for a liability waiver, if we settle on an amount?

Asked on November 15, 2010 under Accident Law, Washington

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

From what and how you have written the question, it sounds like the insurance company is attempting to collect the debt prior to suit.  Sounds a bit backwards here but make sure that you familiarize yourself with the Fair Debt Collection Practices Act so that you are not harassed in this matter. I would also object to their attempting to collect a debt that you have not been determined to owe yet.  I might even report them to the state Attorney General's Ofice and the State Department of Insurance too.  Yes, you will be sued.  And if it is determined that you owe the money then yes, they will obtain a judgement and yes, they will report it to the credit reporting agencies.  You will have a right to dispute the claim during the suit and the amount of the repairs.  You will need to present evidence to the contrary.  Settling may be a good idea and then you can ask for a release of the debt, with prejudice.  Good luck.


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