Auto Insurance Claims: accident not reported, general damages, medpay

Question
My daughter was involved in an accident.  Not her fault. The other driver pulled out in front of her. one week has passed and she has not reported it to her insurance company - their efforts to contact her have resulted in no response.  Her ins co tells me they cannot accept liability unless they talk with their insured. when asked what happens if they never talk with her they answer that they will deny the claim and i will have to go through my ins carrier. Is this truly the case? they seem to not making much of an effort to contact their insured.

Answer
Hi Linda,

Yes, the insurance company is correct in that they cannot open a claim without the cooperation of their insured.  After all, it is NOT the insurance company that will get sued: it is the other driver.   And since it is her choice whether or not she wants to use her insurance to pay for her damages (duh--who doesn't?), the company must wait for her to cooperate with them.

Sometimes tortfeasors, like this one, think that if they ignore the problem, it will kind of just go away.  Newsflash to that other driver: the longer you wait, the worse it will be for you.  The quick cure for a stubborn tortfeasor who is playing ostrich is just to sue her.  That is the best way to smoke her out.  But that is not the best idea for your daughter right now: she needs money, not a lawsuit.

The immediate problem for your daughter, however, is to get her car fixed and to get medical care.  She should open up a PIP/MedPay claim and a collision claim in her own insurance.  

She will have to pay a deductible with the collision, UNLESS she just states that this is an uninsured claim.  Has the other company even acknowledged that the tortfeasor is insured?

Once her company pays its money for the PIP and car repair, THEY will waste no time suing the tortfeasor, and your daughter can join that to collect for her general damages (pain and suffering).

You kind of hinted that the tortfeasor's insurance company should be on the move to hunt her down and get a statement from her.  But that is not their function: they are just insurers, that is all.  They just have the obligation to pay for damages if their policy holder asks them to.  So I do not see any bad faith in their lack of effort to make their insured speak to them.  

Instead, it will be your daughter and her company that will eventually light the fire under this tortfeasor.  Then she will get her company involved.  Does that make sense?

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com