Auto Insurance Claims: Insurance Claim, liable party, other vehicles


Question
I was recently in an auto accident.  A car rear-ended my vehicle.  No other vehicles were involved.  All parties involved as well as the police report state the other driver was 100% at fault.  Since it was the other drivers fault I had originally decided to file the claim through the other drivers insurance (AAA).  I have now been told the other driver has claimed the reason for the accident was due to break failure in his car.  His insurance company is now saying that they will not approve any repairs to my car, a rental car or any other liabilities until they have an inspector determine if the breaks were truly faulty.  His insurance company has also stated that if faulty breaks are found to be the cause of the accident, they would no longer be responsible to pay for any damages or repairs and that I would have to file a claim directly with the liable party (possibly the car manufacturer, or a service repair shop, etc.). The other drivers insurance company said that I could still rent a car and use the claim number they provided, but should the breaks be found at fault they would not pay for the rental and I could be liable to pay the rental costs myself.  I have now decided to process the claim through my own insurance company instead, who has assured me this would not affect my premiums, and they have authorized repairs of my vehicle and stated they would be the ones to battle with the other drivers insurance for payment of the claims (My insurance has also waived my deductable since I was not at fault).  My insurance company as well as most other people I spoke too were surprised and appalled at how the other drivers insurance company is handling this claim.  I am having trouble understanding why this faulty brake issue should even affect me at all.  Regardless if it was faulty brakes, or driver error, or even a pigeon flying past blocking the other drivers view, his car hit my car and his insurance company should be taking care of my claim.  Everyone I spoke to including other insurance companys I checked with feel the same way.  It's now been 5 days since the accident, and the last time I spoke with the other drivers insurance agent, they stated they are still waiting for an inspector to check out the brakes, and still cannot fully authorize a rental vehilcle for me.  Luckily I have a friend who has lent me a car otherwise I would have missed work and classes.  My questions are if this is all legal what the other drivers insurance is doing?  Could there be potential issues processing the claim using my insurance agency instead of directly with other drivers insurance? Should I seek legal counsel to help resolve this issue?  Is this normal practice for insurance companies (especially AAA)?
Thanks for your help.

Answer
Hi KT,

The first job of an insurance company is to find a reason to not pay the claim. In your case they are saying that if the brakes are faulty that their client may not be at fault. Instead it may be the fault of the manufacturer or someone else that may have recently worked on the brakes.  In order for an insurance company to pay out it must be evident that their client was "negligent" and that is what caused the damage to your vehicle. They are saying that if there client was not negligent they will not have to pay but instead it should be the manufacturer or mechanic who was negligent and must pay.

This is a ploy that is used by many insurance companies. If the brakes were malfunctioning it would have been obvious prior to your accident. And if the driver knew the brakes were malfunctioning before the accident then he would be negligent for continuing to operate the vehicle.

In any case you did the right thing by going to your own insurance company. Let them repair your car, then, once liability is settled you can pursue the at-fault insurance company for a loss of use payment as well as the diminished value of your vehicle due to the repaired damage.

I hope this helps
Richard Hixenbaugh