Auto Insurance Claims: Auto accident., legal judgement, certified mail

Question
QUESTION: I was rear ended while stopped at a red light.  The guy who hit me is the "son" of the insured.  I reported the accident and faxed the police report to Ins.Co..  We both have liability and both are insured by GEICO!.  I've called GEICO numerous times and have been told that their waiting to make contact (verbal) with their insured.  They also stated to me that State Law gives them (GEICO) 30 days to reach their insured before making any payments to me if they decide to at all..  What action if any should or could I take?..   Thanks for any assistance you can give.


ANSWER: As the liability carrier of the at fault person, Geico has no legal duty to you. And if you have no collision coverage, they don't owe you anything either. However, the other party (the owner of the car) does owe you and that's where you have to apply pressure. Send them a letter demanding that they have their insurance company inspect the car or you will authorize the shop to begin work in 10 days and they will be presented with the bill. Send a copy of the letter to Geico and mail both certified mail with a return receipt.

You are also owed a rental car if your car is not safe to drive.

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

QUESTION: If GEICO owes "me" nothing for the accident, then why have they been telling me that as soon as their insured makes contact with them they will set up an appointment with their adjuster and set up a rental car for me?.  They also keep telling me at that time they will make a liability decesion.  And if I have the car repaired and the other party refuses to pay for it then where does that leave me?.  I don't understand, if GEICO is the guilty party's insurer and their 100% at fault why then is GEICO not responsible to me?.  What will sending GEICO a copy of the letter do?.   Thanks again for your help


Answer
Until you have a legal judgement against the other party, GEICO has no legal obligation to you. However, as insurance claims go, once their policyholder has reported the claim an insurer will operate as though they do have a liability to you.

If you go ahead and have the car repaired prior to GEICO having the opportunity to inspect the damage, they can deny the claim. They have that right to inspect the damage. By sending GEICO a copy of the letter demanding that they pay the cost of repairs, it puts them on notice of the loss and informs them that you know who is liable for the cost of repairs---their policyholder. GEICO is contractually liable for any damage caused by their policyholder, but is only liable to them.