QuestionQUESTION: I filed a collision claim with my insurance. I have not got the recovery of my deductible yet. My insurance informed me that subrogation has not been sent to them to date because the other carrier is still investigating the accident. Can you explain what the subrogation means and how it works?
ANSWER: Hi Rou,
Subrogation simply means that your insurance company assimes your right of recovery from the other insurance company. Your insurance company will create a package of information including; any driver statements, the reason they feel the other driver is at fault, your car repair estimate as well as the cashed check used to pay for your repairs as well as a demand to be reimbursed for the amount your company paid out as well as your deductible. The other insurance company will then conduct there own investigation and if all checks out they will send your insurance comapny a check. When the check is received, your insurance company will then send you a check for your deductible.
In some cases the other insurance company may not agree that their insured is at fault or may only agree to a percentage of fault. If they happens, the two companies will negotiate a settlement. If your company agrees to less than 100% then you will only receive the percentage of your deductible that they agreed to. The entire process could take anywhere from a few weeks to several months depending on the two companies and the issues involed.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: You said, “The entire process could take anywhere from a few weeks to several months depending on the two companies and the issues involved.”
Does the entire process include the arbitration? Do two carriers have to go the arbitration if they disagree each other? Thanks for your answer.
AnswerHi Rou,
There is no absolute answer. It depends on the two companies. Sometimes they agree and all is settled and sometimes it could take months of arguing back and forth. If the two companies can not reach an agreement, then they will submit there argument to arbitration. No all insurance companies are signed on to arbitration so again, it depends on who the two companies are and how much they are willing to fight.
The best thing to do is to just forget about it. If they eventually settle, you will receive a check in the mail for your deductible or what ever percentage of your deductibal that they settle the claim for.
I hope this helps
Richard Hixenbaugh
