Auto Insurance Claims: 3rd party accident claim., own insurance, accident claim

Question
QUESTION: I was rear ended on May 19, 2009 while sitting at a stop light. The police officer who filled out the accident report also witnessed the accident. I reported the claim that evening to both insurance companies, mine and the at fault parties. The at fault driver is not the owner of the vehicle or on the policy. He did have permission to drive. The owner of the truck and insured was the passenger at the time of the accident. Both drivers license clearly states 2 different addresses. They do not live together. These are the 2 reasons given to me by the at faults insurance company of why they have opened an investigation and may deny the claim. I have been trying for a week now to get an update on the investigation. I have left 5 messages and still have not received a phone call back. I contacted the owner of the vehicle to make sure she filed a claim. She said she is cooperating with the insurance company but now they wont return her phone calls either. There is 5,000 worth of damages and I am told I have to wait 30 days before I can even find out if they will pay. I am afraid this company is creating it's own reasons to deny my claim. How long can this go on and what if the insurance company tells me they are denying the claim because the at fault party is not cooperating with the investigation when she really is. Will they will have to pay for the damages if the driver had permission to drive, they do not live in the same household and the insure really is cooperating with the investigation. Thank you for your time with my question. I don't know where else to turn.

ANSWER: Hi Christina,

It sounds like you are dealing with a rougue insurance company. Some companies will do this to force you to go through your own insurance company. They know they will eventually have to pay, but, the longer they can hold on to the money and earn interest the more money they make. Also they to not have to pay a damage estimator to inspect your car and so on. This is not an acceptable way to do business but they can get away with because the insurance industry owns the politicians so the laws are very lax.

I would recommend that you do go through your own insurance company. You will have to pay your deductible but you will save a lot of headaches.

I hope this helps
Richard Hixenbaugh

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

QUESTION: I am willing to wait it out. My vehicle is still driveable. If I do wait it out are there time limits that they have to complete the investigation or for the damages. I have heard they have to send you something within 30 days to let you know if the claim is approved or denied. I was wondering if there was a time limit for the process?

Answer
Hi Christina,

Most states require that the claim be investigated, liability determined and they either pay or deny the claim within 30 days. If there is a good reason for not being able to complete it within the 30 days, they can extend that time period by sending you a letter explaining the issue.

If you do not feel you are being dealt with fairly, you should file a complaint with your state insurance commissioners office.

I hope this helps
Richard Hixenbaugh