Auto Insurance Offered Money in Exchange for Not Forming a Lawsuit

**87Olds** · 07-12-2012, 11:06 AM

My question involves insurance law for the state of: Washington DC and/or Maryland

I was hit from behind at a dead stop by another driver in Washington DC. I wasn't at fault. I settled the property damage portion of the claim with the person who hit me's insurance about a month ago. Out of the blue I receive a phone call offering me reimbursement for lost wages, pain and suffering, and medical bills in exchange for my signature stating I won't sue. I wasn't badly injured but I did go to the doctor and did have xrays and prescriptions written for pain. I missed about a day from work. MY insurance company paid my medical bills, not the at fault's insurance company.

I am inclined to take the money offered as my injuries weren't extensive but I'm not sure about the medical portion. Shouldn't my insurance company be the ones getting the re-imbursement for medical pay outs? Am I entitled to the money they are offering for medical? I would think not.

However, I do think I am entitled to the money for lost wages (which weren't paid out by my insurance because I didnt file for them) and I do think I'm entitled to the money they want to pay me for pain and suffering. I'd like to handle this without a lawyer. Any advice on how I should handle it?

Thanks in advance!

**Mr. Knowitall** · 07-13-2012, 10:23 PM

You can talk to your insurance company about any subrogation claim they might make against any settlement you receive.

**FullAuto** · 07-13-2012, 11:43 PM

If your insurance paid under UM coverage, they will subrogate. But UM also should pay for lost wages, pain & suffering, mileage, etc and not just the medical bills alone. If they paid under C coverage (medical only), it's a first party coverage. You are entitled to that money because you pay the premium for it. If you are injured and someone else is liable, you can recieve payment from both your first party C coverage and the third party carrier. It's legal double-dipping. Exceptions are usually for when worker's comp is involved. And of course this can still vary state by state as this system is typical in non-PIP states.

But as Mr. Knowitall said, just call your company and ask if they are reserving the right to subrogate or if you can settle with the other carrier directly. I don't work MD. But if your company says to go for it, then you were probably paid under your C coverage so take the money and sleep well.