QuestionQUESTION: I was recently involved in a minor accident (on 10/16). I was pulling out of a private driveway (church parking lot across my daughter’s school; church parking lot is used as school parking lot in the mornings and afternoons to avoid congestion). I was turning left at 2-3 mph out of the lot and a minor collision happened with the car coming on the main road who was trying to get into the center lane to turn into the parking lot. Even though it appeared he was speeding I got a ticket for failure to yield and had to appear in court. I also got another ticket for no proof of insurance (I put the wrong card – my wife’s car’s insurance in mine and mine in hers). I appeared in court on 10/31 and the charges were dismissed because the complainant and witness didn’t show up.
In the meanwhile I contacted my insurance agent the same day of accident to see what I should be doing. There is no damage to my car – just paint scrapes and it appeared there were no damages to the other car as well but he was claiming lot of damages even at the accident scene. My agent asked me to check with the guy if I can do cash settlement directly if the damages are minor (less than $500) as a claim on my insurance would result in me losing no claim discount of $160 per year for 3 years. I called the guy’s home number and his wife spoke to me. It was actually her car. I told her I would be willing to do cash settlement and asked her to get estimates. Even before I could tell her she herself expressed interest in direct settlement.
I didn’t hear from her for over two weeks and today I got a call from the wife and she said she had three estimates ranging from $1400-$1800. I was surprised at the damage but she said there was a hole in the door, bumper has to be replaced blah blah blah which is hard to believe based on the nature of the accident. The guy also said there was a hole on the door right after the accident, just looking at it. So it could be something they had from before. Anyway I called my agent today to see what I should be doing and my knowledgeable agent is out of town. His assistant asked me to file a claim. I told her I am not making any claim for my car and am only interested in letting the wife know what how she should be proceeding; she seems not so knowledgeable and was telling confusing and contradicting things.. The question is what should I do? Should I file a claim, should I ask the wife to proceed directly with her insurance? Will the other insurance come to my insurance for the damages? Who will pay for her damages – my insurance or hers? What about her deductible? My agent’s assistant is telling me the other insurance will most likely come to mine for at least the deductible and I could be looking at settling the deductible directly with the wife. Will this affect my insurance even though the charges have been dismissed? I am very confused. My agent will be back on Wednesday but the wife wants an answer by tomorrow.
Thanks
ANSWER: Hi Mehmood,
In my opinion, you received some very bad advise from your agent.
Most states require that you report an accident to your insurance company within 10 days and that your company then files an SR-1 form with the state showing proof that you were insured at the time of the accident.
The fact that the citation was dismissed in court is almost irrelevant, because the very statement in the police report that you were issued a citation for failure to yield right of way and the investigating officers statement and conclusions within the report will show his opinion that you were at fault.
While you are going through this time delay while trying to cash settle out of your own pocket, the other driver could be treating with a Doctor or Chiropractor for "soft tissue"
injuries and preparing to file an injury claim against you.
Even if you do cash settle, you are not sufficiently knowledgeable to prepare the release of all claims documents for the owner and driver to sign that would completely close this case forever.
Your insurance policy contains the legal wording that you are required to make a 'timely' report of any accident.
By your failing to make this timely report, they have the legal right to deny any coverage pertaining to this accident, leaving you to pay all damage and possible injury claims out of pocket.
I strongly advise you to IMMEDIATELY make a report to your company's claims department.
I will also advise you to find a new agent who is more knowledgeable regarding your state laws and the legal wording of your own policy.
My advise is legally correct in accordance with your state laws and the legal wording of your insurance policy.
I trust that my answer has been helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-01-07 2:56 PM PST
---------- FOLLOW-UP ----------
QUESTION: Bennie
Thanks for the timely response. I did mail the police accident report (mail stamped on the 10th day). I will ask my agent to file a claim tomorrow. What should I tell the other party - to process a claim with her insurance or just let her know that I will not be in a position to settle out of pocket and ask her to do whatever she feels is right? In any case after looking at the estimates I am not willing to settle $1800 from my pocket. Am I in any trouble now or will I be Ok if I file the claim first thing tomorrow?
AnswerHi Mehmood,
Do NOT call your agent, he has given you enough bad advise already.
He is not the person that you deal with on a claim. Make a telephone call directly to your Insurance Companies CLAIMS department. They will take a full report of the accident and assign it a claim number.
Then contact the adverse party, tell them that you have turned this situation over to your insurance company, and give them the name of your insurance company, their telephone number and the claim number. It will be their choice as whether to deal through their own company or contact your insurance company.
Since you are only about 7-8 days past the 10 day period, this will not be considered a late report and you will not be in any trouble.
In the future, report any accident to your insurance company, even if it's only a minor scratch.
I'll give you an example for doing so.
Tonight I had dinner with my son and his wife. He told me that about 2 weeks ago while on his way to work, he was stopped at a red light. The following car stopped very close behind him. My son accidentally allowed his truck to roll backwards and the bumper hitch but a dent in the hood of the car behind him about the size of an egg. Both drivers surveyed the damage and the other party said "oh, it's so minor, let's just forget it". My son, based on the information that I had pounded into his head since age 15 1/2, insisted that they exchange names drivers license numbers and insurance information. As soon as he got to his office, he called the claims department of his insurance company and reported the accident. Today he was informed by his insurance company that both parties in the car were claiming injuries. The insurance company explained that they needed to come and inspect the damage on his truck. There is not even a scratch on his chrome bumper hitch and the impact was so mild that the other car didn't move on inch, yet both occupants are treating for 'soft tissue' injuries.
If he didn't report this minor incident, they might have treated for 6 months before informing him and an delayed report of 6 months would have caused his company to deny the claim. This country is filled with people looking to make a fast dollar from the insurance company, so always make a report, no matter how minor the damage. This the only way that you can be assured of total protection.
Sincerely,
Bennie
11-01-07 10:24 PM PST
