I just got a letter in the mail from a subrogation service stating I owe them like $2,000 for a car accident I was in back in January. I had insurance at the time and I called the "recovery specialist" and she told me the police report says I did not have insurance on it when I am looking at it right now and it clearly states that I did. I am 21 and I only make like 16,000 a year it would take me forever to pay this. Anyways I was wondering if anyone knows if I just avoid it and do not pay it will it ruin my credit? I refuse to pay for something when I was paying for insurance.
2007-10-17 12:51:26 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Notify your insurance company.
I can't begin to answer this...you don't mention what your policy covers..is it full coverage or just PL/PD? Is your state a no-fault state? This amount could be to recover the other persons deductible. In some states, the no-fault law prevents them from collecting more then $500. I'm going to bet this is your problem, and you will be on the hook for this amount.
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2007-10-18 03:19:58 · answer #1 · answered by Anonymous · 1⤊ 0⤋
First, have you notified your ins co about the accident and subrogation letter you received?? If indeed you had ins at the time of the accident, then the letter is their problem, not yours.It is probably an error on the police report.
And, yes. This is a lawful debt and it can screw up your credit.
Call your ins co right away.
2007-10-17 12:56:52 · answer #2 · answered by TedEx 7 · 1⤊ 0⤋
The worst thing to do is ignore it. Just send it to your insurance company to handle for you. Since you did have insurance, they should poay all bills relating to the accident, subject to the liit of coverage on your policy.
If you ignore it, it can ruin your credit down the road.
2007-10-17 12:57:52 · answer #3 · answered by lollybug102 3 · 0⤊ 0⤋