QuestionQUESTION: Hi Justin,
I was involved in a at fault accident July 2011 and I live in PA. I was making a left turn at a stop sign and there was a car coming straight from my left side, he was going straight and had no stop sign or light, so I was at fault. My insurance company (Progressive) said that I was at fault even though I stopped for a minute and check if there were any car coming, I still doubt if he was speeding, but I have no proof of that. Since the other party only claimed about 3k of damage from my insurance company, I was ok with it until 2 weeks ago, I received a letter from the other party's company (Geico) asking for $9600 from me, that Progressive is not going to cover because my limit is 5k.
I called my agent, he contacted Geico and they insist to claims more than 5k, however, $9600 is negotiable, but I have to call Geico to settle it. Here are my few questions.
I'm a housewife, I have no money or asset beside my car, can they go after my husband's asset, he is not rich either but he has some cash?
Should I deal with Geico myself or I could save more money if I get an attorney? How much could it possibly cost if I need an attorney?
Is it legit for the other party to file a claim after 9 months? and How can I know if he did not exaggerate the amount?
Is there anything I should not tell Geico or how should I position myself when dealing with them?
I'm really lost and worry because it's my first accident and I'm not well covered under my insurance policy, I don't want to go bankrupt because of $9000. Please help and thank you very much for your time in advanced!
ANSWER: I did answer this question when it came through, I do not know why I got it a second time and there is no record of my answer. I am sorry for the delay.
Okay. . .
Progressive will cover $5K, and you are responsible for the difference, if it is reasonable.
1. GEICO can't do anything except win a judgment and put this on your credit.
2. Considering the amount of the loss, I doubt getting an attorney will be worthwhile. What you might save with great negotiation would be paid for in legal costs.
3. It is 9 months later, but that is normal, it takes a while to get claims settled.
4. Ask for all the proof of damages and review them thoroughly. This should tell you if there are exaggerated amounts. For example, new parts being put on an older car is not reasonable for you to have to pay, you would only owe for the reasonable cost of repair, not new parts. That's just one example.
5. Keep as much information private as you can. Don't give any information until you have the information you need.
6. You won't go bankrupt. The worst case scenario is that you get sued, lose, and have to make payments.
I hope this helps.
JP
---------- FOLLOW-UP ----------
QUESTION: Hi Justin,
Thank you very much for your inputs, I feel much relieved now, especially I have asked for a itemized bill. I broke the left front part of his BMW, I thought it really costs 15k to repaired it. When I looked at the itemized bill, I think something is not correct. He repaired/ replaced his hood and the front lights as well, the lights were not damaged and I still have a photo of it. Also, I found his car on ebay, it cost only 15k. so now, should I contact my insurance and have them verified the case?
p.s. it my agent supposed to fax me the itemized bill with the other guy's VERY private information? The document that I got was very detail, at least with his phone number and address.
AnswerWhen you are a party to the accident, then your are privileged to have the private information on the other party. If you can't make a sound argument as to why the charges are excessive, the you need an expert. Our company audits claims for insurance companies, individuals and attorneys all the time. I hate to say it, but you're probably in over your head and need a professional to assist you. Insurance claims can be quite complicated. Hire a property damage consultant or an attorney to help you figure out how much you owe, or to help you audit the damage claims of the other party. Agents don't normally have experience in damage evaluation, so if you get any help from your insurance company, it will be the appraisers that help you determine if the property damage costs are reasonable.
I hope that makes sense. Good luck!
