Question:
Can an insurance company go after a pedestrian (or the family if
the pedestrian died) who was hit by a car for damage done to the
vehicle if the person walking was determined to be at fault?
Answer:
Yes, if a pedestrian is
negligent
and causes an accident, laws typically allow the driver's insurance
company to try to recover any money it pays out for repairs.
Legally, the situation is no different than any other insurance
claim where the fault lies with another person. The insurance
company pays to repair a car, then turns to the at-fault party to
get its money back. This happens thousands of times every
day. The other party may be another driver, a bicyclist -- or a
pedestrian.
Everyone who uses a road is responsible for using due care.
Someone in a car must respect traffic laws, but so must someone
walking or riding a bicycle.
Crosswalks are built for the safety of both pedestrians and
motorists. Drivers know to be on the lookout for pedestrians at
crosswalks, so they should proceed with caution around areas where
someone could be in the roadway. They are exercising due care. A
jaywalker is violating the law, though they are responsible for
taking due care just as a driver is. A person who steps into the
roadway in front of a car (especially at night if the person is in
dark clothing) can be difficult or even impossible for a driver to
avoid.
Recently an insurer did indeed send out a
demand letter to the family of a pedestrian
who died after being hit by a car, requesting payment of over
$6,000 for the vehicle's damages. When questioned about the
situation, the insurance company apologized, withdrew the demand
and stated that it's not its policy to pursue recovery of damages
in cases such as this.
What if you hit someone?
Accidents between pedestrians and cars are regrettable and
inevitable. Here is how the insurance side works:
If a person hits a pedestrian and has
collision
, the driver can use that coverage to pay for the damages done to
his vehicle (minus their deductible). The insurance company
will investigate and determine fault. If another driver is at
fault, then normally the insurer would
subrogate
with the at-fault party's insurance company (or that person
personally if not insured) to recover what it paid out on the
claim.
Even though a pedestrian can be found liable, not all auto insurers
will pursue the injured individual, or their estate if the
pedestrian dies, to recover the money the company paid out. While
an insurance company may have the right to go after a pedestrian,
it's not usually in their best interest to do so. They likely will
spend a lot of time and money pursuing a person that cannot pay for
damages and there may be bad publicity to follow.
If as a driver you hit a pedestrian and are at fault, your
bodily injury liability insurance typically would pay for that
person's injuries or death (up to your limits). If the pedestrian
is at fault and your insurance company chooses not to pursue him
financially, then you would be unable to recover the deductible you
paid.
If you are an insured driver but are hit by a car while a
pedestrian, you may be able to look to your personal injury
protection (PIP), medical payments coverage or even uninsured
motorist bodily injury coverage of your car insurance policy if the
driver's insurance doesn't cover your injuries.