QuestionMy question: I would like to have someone review the cost of repairs statement from an insurance company.
I was invovled in a car accident. I rear-ended a vehicle going 5 mph. The damage seemed very minimal. I called my insurance and was advised I was not covered as there was a three day lapse in payment. Long story, short: the person filed the claim with his insurance under Uninsured motorist. The insurance billed me $8,000 and change, then two weeks later upped it to $12,000 and three weeks later I receive a bill for $14,000. Same damage. Different prices. Insurance adjuster said there were additional costs and the case was re-evaluated. They send me an itemized bill, but I would like to have an "expert" review it to make sure it was properly and not excessively calculated. I have been out of work for 6 months and I told insurance I would be happy to make payments. I caused the damaged. They want to entire amount, which is impossible. Please, please any advise would be GREATLY appreciated!
AnswerHi Michael,
You did not ask about it, but I would first truly explore the prospects of reinstating your insurance policy. Believe me, I have seen plenty of policies supposedly lapsed that got reinstated for inadequate notice of cancellation, etc. The FIRST place to start on this is with your company and get all of the reasons for failure to process your payment in time. Was there a deficiency in notice requirements, or did the mail hold up the payment?
Second, once you have the facts, DO NOT GIVE IN EVEN IF IT SOUNDS BAD FOR YOU. Instead, contact your State Insurance Commissioner http://www.settlementcentral.com/links.php and go over all of the facts and regulations regarding cancellation notices with her.
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Next, assuming that you do not succeed at getting your policy reinstated, you have to do what you can to stop the insurance carrier from coming after you both in court and via your license. You may not have the money now to pay a judgment, and hence you may be judgment-proof, but they might have a real tool if they can suspend your license via your State Department of Financial Responsibility. That will usually be located within the Department of Licensing or the Department of Motor Vehicles.
I have two more comments for you: ONE is your method to fight the value of the repairs. TWO is to be prepared to have your driver’s license suspended and an expensive SR22 filing restriction placed on further purchases of insurance.
My conclusion will be for you to discharge this debt in bankruptcy if none of my other ideas for you work out.
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By the time this is all over, you will be a poster boy for telling all your friends to NEVER EVER DRIVE WITHOUT FULL INSURANCE COVERAGE.
Ready, Michael? OK, let’s get on with it!
HIRE AN EXPERT TO REVIEW THE DAMAGE ESTIMATES
I agree with your idea that the damages seem like a lot for a low impact collision. You have every right to get all of the repair estimates and to inspect the car.
I first want you to get up to speed on some of the auto body and insurance adjuster
http://www.settlementcentral.com/page0456.htm auto accident tricks and relationships. Next, I want you to know that you have the right to challenge their figures.
But unless you know what you are doing, you will not be able to make a dent in the repair bill. Hence, my best solution is for you to hire an auto collision repair expert http://www.settlementcentral.com/page0457.htm for insurance adjuster negotiations or just for his opinion. You will spend around $300 to $400 depending upon what you want him to do.
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SR22 FILING—DEPARTMENT OF FINANCIAL RESPONSIBILITY
Your state likely does have a method for securing financial responsibility when an uninsured motorist causes an accident. In short, the statute will usually provide a way for the victim to file an affidavit with the state as to the amount of damages. This affidavit usually has to be filed within a certain time, perhaps 90 days on average.
Once the state determines who is at fault and that the victim’s affidavit is an accurate statement of the victim’s loss, then they will send the tortfeasor a certified letter in which the tortfeasor has something between 30 days and 60 days to post financial responsibility for that accident or his LICENSE WILL BE SUSPENDED.
The tortfeasor has three ways in which to avoid a suspension of his license.
#1 is to pay the amount and file a receipt from the victim.
#2 is to post that amount in a bank account blocked in the name of the state, pending resolution of the underlying dispute. The tortfeasor can earn interest on money so posted. One might thusly take out a loan and post that money and pay back the bank monthly.
#3 is to work out some kind of arrangement with the victim to pay monthly. In order to do that, and for the victim to file a receipt with the state, the tortfeasor would have to make a promissory note and file some security, such as a car. Any commercial attorney can make the necessary collateral filing to perfect the victim’s lien in the tortfeasor’s asset.
By the way, DO NOT DRIVE WITH A SUSPENDED LICENSE. It will be checked for any contact with law enforcement, and Driving While License Suspended (DWLS) is a "biggie" for both habitual traffic offender status and future insurance costs. Plus, once you get caught, the next DWLS conviction almost always carries some jail time.
Also, once you are in a financial responsibility category, you will find that next time your insurance will cost more than it would have this time. That is because you will be in a "high risk" category according to the insurance industry. Some states require you to make what is called a "SR-22" filing for proof of insurance. Your costs for insurance just took a BIG hit.
DEFENSES to the LICENSE SUSPENSION
Here are the best defenses to the suspension order you will receive (assuming the victim or his insurance company does file with your state Department of Financial Responsibility.
#1. Failure to comply with the filing requirements. Call the Department and get the statute and see if they filed in time. Object to the suspension order.
#2. Work out a bank loan and deposit it to retain your license. You get interest on the bank account, and for each dollar that you eventually win in getting the claim reduced later on (i.e. reduction in damages or compromise settlement), all you have given up is the interest on the loan.
#3. Discharge the claim in bankruptcy. Any civil judgment can be discharged in bankruptcy court UNLESS you were committing a crime at the time of the accident, such as a DUI. BUT, until you have your bankruptcy attorney get the protections for you offered in bankruptcy court, the other side has the right to complain to your state department of licensing. HENCE, TAKE PRO-ACTIVE PROTECTION AND FILE EARLY.
Your attorney can PLACE A STAY on the state license suspension letter to make it totally ineffective. The money you invest in bankruptcy filing with save a lot later on. Your attorney can explain how the debt structure will work vis-à-vis your assets. Presumably one who had no insurance also has few assets above the state exempt assets (i.e. those that you get to keep).
In most states, once the underlying debt has been eliminated via bankruptcy, you can quash the suspension letter with no further legal work.
But one additional thing remains for you to fight. Unless you take some action as I have suggested above, you will be stuck with expensive insurance for up to three years. This is because they will make you purchase at-risk insurance.
THEY will require you to get insurance that costs a lot. It is called SR-22 filing insurance, and because it is mandatory and the company has to file the form SR-22 with the state, they have you by the short hairs and they charge a lot for such coverage. That is because you will be in a "high risk" category according to the insurance industry. The SR22 requirement will stay on your insurance for one to three years.
I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
