Auto Insurance Claims: Liability Insurance, insurance comapnies, other vehicles

Question
Hi Richard, I was involved in an accident with two other vehicles. It was not my fault and one of the other drivers insurance company has accepted responsibility. There insurance company sent out their appraiser and came back to me and says my car is totaled and that the at fault drivers coverage is not enough to cover the damages for two vehicles. So they are asking me if I have collision insurance so that I can get my policy to cover the damages. So my questions are... What are my options here? Should I, and do I, have to get my policy to cover the damages if I have collision? What if I do not have collision, who is going to pay for my car? Do you think it is possible that the at fault drivers insurance company is totaling both vehicles so that it will increase the cost above what the policy covers so that they will not have to pay?

Answer
Hi GoJoe,

No matter what the limit of insurance is that the other company has, they will have to pay it out. Insurance comapnies are required by law to inform you when there is a coverage limits problem. If you do have collision coverage, you should place the claim with your own insurance company. That way you will get your claim paid in full minus your deductible. Your insurance company will then request reimbursement from the other company. Since their in another vehicle involved, the reimbursement will be pro-rated between the 2 vehicles. Once your company is reimbursed, you will be reimbursed for your deductible based on the percentage of the total claim thay were able to collect. The reason this is your best option is that if the at-fault driver only had a minimal policy, he or she likely has no assets for you to go after. You would have to sue the at-fault person in order to get a judgement against them and then you might spend years trying to collect on the judgement.

This is why you pay for collision insurance. Just let your company handle it and all will work out to the best.

I hope this helps
Richard Hixenbaugh