QuestionSir:
This happened to me way back in '95. I've been scared of car insurance companies ever since, and I want to know how to handle this, should it ever happen to me again.
I was hit head-on by a drunk who drifted into my lane. Totalled my 1 year old sport coupe. I was lucky not to be seriously hurt, althoug I suffered many bruises and visual blackouts over the next several weeks. The officer who investigated found the drunk 100% responsible. He was a well known and many time repeat offender with an influential friend. A judge, who apparently kept fixing things for him. (He was back on the road in 1 week with a new car.) Next morning I rented a car to get around, and went to my own insurer of 8 years, State Farm. The local agent told me I'd recover my deductible faster if I filed a claim directly with the guy's insurer. So I went home and called them. They were uncooperative, so I immediately went back to my agent and insisted he process the claim. He refused, saying, "You went with the other company, so we're not going to handle the claim." I protested that I had not signed anything or agreed to waive my right to have my own insurer process the claim. I pleaded and threatened. Even contacted the national office. They refused to handle the claim.
I had no money for a lawyer, as all my savings were in my car. And no one would take the case. So I returned to trying to convince the drunk's company (Hartford) to send an adjuster and settle my claim. The Hartford kept calling me at work, trying to trick me into admitting some responsibility for the claim, recording the calls, trying to twist my words. I stood firm, but they kept stone walling on sending an adjuster. When they finally paid up, they used a cooked set of internal books. I got $2000 less than low blue book for my car, claiming it was "an unpopular model". They also refused to pay for my car rental for the six weeks before they finally sent an adjuster to the wrecker yard to look at my car. State Farm wouldn't cover my rental costs, even though I'd paid for rental coverage for years, for just such a contingency.
Shortly afterward State Farm issued an amendment to my policy which stated that they did not have to pay for rental cars if their customer files a claim with the other company! I want you to know, at no time, did I sign or initial any paperwork waiving my right to file a claim with my own company, or accepting Hartford's right to process it.
I wrote the NYS Insurance Commissioner several times for help during this stressful trial, but they never even answered. I finally did talk to a local attorney. He said NYS "no fault" prevented me from recovering any of my losses from the drunk. However, I believe now that he was the drunk's lawyer, and just didn't tell me.
I ditched State Farm. That was all I could do. I'd had a perfect driving record at least 10 years before the accident (and still have no points on my license), and always paid my bills on time. How could they treat me like this?
What could I have done differently? What can I do should this ever happen to me again?
AnswerHi Jim,
I am sorry to hear of the abuses you suffered at the hands of the insurance industry. I will provide some information to you, but in all humility, I am NOT the best expert to help you with this kind of issue. I am going to recommend that you run this by one of our excellent insurance adjusters once you are done reading my response.
I almost hit the "reject" button for your question, which would have let you know that property damage coverage issues is an area out of my expertise. Dr. Settlement is a personal injury trial attorney. All we deal with is proving liability and damages to recover money for injured victims. We really do not get involved with property damage claims at all. So this is an issue that is beyond by knowledge, both in topic and in state law. I know the laws of maybe nine states, but not NY, since with the no-fault provisions, few third party claims are made.
But if I had rejected you, then what good would that do you? So before I send you off to find another expert, I thought I would take some time to give my two-bits worth on your question. BUT, I do want you to find one of our excellent insurance adjusters on allexperts and ask him or her your question. I will bet that they are familiar with this kind of problem and will have some good information for you.
I am going to start with the idea that it seems inane on the part of State Farm to first direct you to the other insurance company and then to deny that they could handle your claim because you had somehow become "contaminated" by merely talking to the other company. You did the RIGHT thing to write to the insurance commissioner.
As for the failure of the insurance commissioner to respond, I cannot know what to say about what you should have done in your state, but in the best advice for most states is to write a letter of complaint about the insurance commissioner's failure to answer you. Send it to your state legislative representative and the state governor, with copies of both sent to the insurance commissioner. THAT will be a wake-up call for the staff at the commissioner's office!
As for your not receiving full Actual Cash Value for your vehicle, that is much more common today, since the insurers are using bogus computer-generated valuation reports from nation-wide companies. Unfortunately, victims see that thorough-looking report and take it as being correct. In fact, it is almost ALWAYS bogus.
We did not exist when you were processing your claim. But these days, the best thing an auto accident victim can do is to use www.SettlementCentral.Com as a resource for maximum insurance claim settlements. This applies to both property damage and personal injury claims.
SettlementCentral.Com has insurance property damage claims covered in depth with information and resources that would have allowed you to get a fair result. They have all kinds of tips and tactics that will ensure you get full actual cash value for your totaled vehicle.
PLUS, they show how to attack those bogus valuation reports. For your own information, and perhaps to help you feel better if you seen that thousands of victims have been screwed by insurance companies, here some links you would get if you were to Google CCC bogus auto value reports.
http://www.insurancejournal.com/comments/?a=/news/midwest/2005/07/15/57309.htm&c...
http://www.ripoffreport.com/car-insurance/california-casualty/california-casualt...
Class action versus CCC:
http://www.gilardi.com/pdf/jfca1not.pdf
Here is news of a claim that was completed and in 2005 required CCC to pay EIGHT MILLION DOLLARS in total loss settlements for screwing consumer victims. http://www.insure.com/articles/lawsuitlibrary/total-loss.html
Another thing that you can do is to hire your own expert, and if the vehicle has any value to speak of, the fees of the expert will be more than paid from the results he can obtain versus the insurance adjuster.
http://www.settlementcentral.com/page0457.htm
WHAT CAN YOU DO?
One way to get the attention of the adjuster is to make up a lawsuit from the forms available at the courthouse or online IF the damages are less than the small claims court jurisdictional limits. When you send along that lawsuit, it WILL have to go to the adjuster's supervisor, and the supervisor is going to hit the roof with the adjuster.
A similar tactic is to make a copy of your complaint to the insurance commissioner and send that to the adjuster. Or, of course you DO have the ability to call and learn the name of the adjuster's supervisor and send her an "informational" copy of the complaint.
As for the attorney situation, of course that would be a direct conflict of interest. Hence, it is still not too late to make a complaint to the state bar association if you have information to support your allegation. Even at this late date, you could be entitled to some relief it you could prove a conflict of interest.
If you have no such information, then DO NOT go around making that kind of allegation. It is slanderous, and will open you to legal action.
You asked: "How could State Farm treat you like that"? Easy—they and other insurers do it all the time and no one stops them. Part of the reason might be the nice looking man on TV who tells you that your insurer is "like a good neighbor", and that if you will only suspend your belief system long enough, you will believe that with them you "are in good hands".
So most people are misguided to think that insurers are a rock-solid part of the American free enterprise system, and NOT subject to criticism. Look at all the protesters versus health care reform: they are DEFENDING the abuses of insurance companies?!! Geez, if only they could speak with the thousands of attorneys who have been made to sue the insurers in order to obtain justice for their clients. Anyway, you get the picture: insurers will continue to abuse their customers until either they are sued by their customers or the state government decides to stand up for its citizens.
Anyway, Jim, the point is: you do have rights versus your insurer if this should happen again. You now have an online resource for self-help car accident insurance claim information www.SettlementCentral.Com And you have a means to jerk the commissioner up short if his staff ignores your complaint.
I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
