[USER]

While in Texas, I bought a car for my daughter in Florida, she had a rear end accident, she had florida insurance limited of $10K , now her insurance ask me to sign a financial affidavit in order to settle with the other party since I’m on the title.

Should I sign?

Thanks in advance.

What are my options if I don’t sign ? Is this a bluff so they can ask for more.

Help

[Linds]

The financial affidavit is essentially a cost benefit analysis meaning to show whether or not it would be worth pursuing a lawsuit against you if you have significant non exempt assets that could satisfy a much higher judgment beyond the insurance limits or not.

Whether you sign should be a strategic matter and best to consult with an attorney if needed.

If you have little to no non exempt assets and thus would be unable to satisfy a judgment for much more than 10k then signing one now could work to your advantage and signal to them that it’s likely best for them to settle as opposed to pursuing litigation where the efforts and resources of doing same might outweigh the benefits.

On the other hand, if you have significant non exempt assets that could potentially satisfy a higher amount, the financial affidavit could encourage them to pursue litigation instead of settling.

At a minimum, I’d make sure any settlement bars any further claims relating to this accident meaning the other driver or insurance company waive their right to further claims and can’t come after you personally.

Confirm who is really asking for the financial affidavit. Is her insurance wanting it for their own records or the other driver or their insurance requesting it?

The other side is usually the party that requests a financial affidavit. It’s not a bluff so to speak but a strategic move on their end to put it simply.

There is no FL law requiring that you submit it but under certain circumstances, it could be helpful to show that you’re not a lucrative target for a personal injury lawsuit or it could show you have deep pockets and likely would do more harm than good.

It just depends on your specific financial circumstances and assets.

Side note, you may also want to put the car title and insurance in her name only after this claim is resolved to limit and/or avoid possible liability for things like this in the future.

Do not change the title while this claim is pending as could be deemed a fraudulent transfer.

[Jamie]

If she caused more damage than 10k and that’s all the insurance she has, then they can sue for the difference.

They usually can only sue the driver though regardless of owner so I’m not sure what the affidavit is.

Probably best to call an attorney for some guidance on that.
Please use this as an opportunity to get enough insurance so this isn’t a problem in the future.

Insurance protects our assets, but also provides help to those affected.

A young driver hit my dad, totaled his car, got an injury that made him lose his job 1 year before retirement meaning he lost his fully paid pension.

He got 20k because that’s what the driver had.

Please make sure you both have enough insurance because it can ruin people’s lives.

[Steffens]

This happened to a family member of mine, they co-signed on a car lease for their adult daughter (charged in accident) and still had her on their insurance policy as well.

In their case, they were deemed “uncollectible” due to low income & lack of substantial assets (their only asset, a 401k acct, is protected against creditors/lawsuits), same with the daughter.

The other party’s attorneys continued to harass them for more financial info until insurance settlement was finalized.

IMO, personal injury attorneys are ridiculous in Fla – they run ads in every other TV commercial spot, radio ads, and billboards in FL & have a strong lobbying presence in the state (insurance fraud is also rampant there).

Would suggest you remove yourself from your daughter’s car title and insurance & have her increase her coverage limits above the state minimum (increase her deductible to help lower premium rates a bit).

It’s also a good lesson to review your own insurance coverage limits (always do more than the state minimum, including uninsured motorist limits) & look into adding a personal liability umbrella policy if you have substantial income and/or assets to protect. Good luck!

[Rebecca]

For future reference, this is why you want to have higher insurance limits–because the limits on your daughter’s policy is so low, they are looking for other people to pursue for damages.

You are one of them because you are a co-owner of the car (that is what name on title means.)

[Brats]

This is why buying big insurance policies and not the minimum is key. Everything costs a ton these days. This will be a life lesson for your daughter.

I had an old car and only kept liability coverage when I college.

I was told boned and the people fled the vehicle at the time. So no proof of who hit me.

I was a broke college kid who in that day also lost my car. I never keep just liability anymore!

[Mark]

What does rear end accident mean? Did hit another vehicle or was she hit by the other vehicle? Rear end accident is somewhat vague, like something is being concealed.

Normally, it would be more clearly stated.

She was hit, she was rear ended, her car was struck in the rear by another vehicle…for example.

If she was hit, then sign the form.

[Author]

Posts