Auto Insurance Claims: rental car fees, uninsured motorist coverage, small claims court

Question
QUESTION: Hi there
    Someone hit my car on 11/22/2009. That driver hit and ran away but he was caught the same day. My car went through a major repair and PGAC (Permanent General) has already paid $10,000 for my repair. However, they don't pay my full rental fees. They force me to accept their settlement for only $959. I rented a Honda CR-V for $50/day for about 50 days. I got a receipt to prove it. My car is a Honda CR-V too. Since I already paid $2600. Why would I accept this settlement right? I was the victim and why would I need to pay for rental car??

ANSWER: I need some more information.  I'm assuming this is being handled under your Uninsured Motorist coverage?  The laws for UM coverage vary by state.  What is their basis for only paying part of the rental?  Did they discuss this with you when you rented the vehicle, and give you parameters in advance?  Do they think you spent too much per day, or do they think you rented too many days?  Is the policy limit an issue?

You do have a duty to mitigate your damages under the law.  Being a victim does not mean they pay whatever you like, so I need to know why they said no.

---------- FOLLOW-UP ----------

QUESTION: No....it is not handled by my insurance company. Although I have UM coverage but I don't want my ins company to pay for any damage becoz they will raise my rate. I'm dealing with the other party's ins company (PGAC) directly. The basis for them to pay part of it is that they exceed their coverage limited. That drunk guy hit my car first and then my car got pushed and hit another car. Just the repairs for these 2 cars are $24,000. Therefore, they got no more money to give.

Are you saying that I should just accept this settlement? Is there any other way I can get back all my money??

Answer
The insurer will not pay more than their policy limit.  Your only other option is to sue the guy who hit your car.  You can file in small claims court and you will not need an attorney.  However, you need to consider whether he has the ability to pay you if you win.

Also, I would not sign a release from the insurer, because if you do so, you forfeit the right to sue him.