Auto Insurance Claims: MINIMUM COLLISION LIMIT, state insurance commissioner, underinsured motorist coverage

Question
I WAS REAR-ENDED AND THE AT FAULT DRIVER ONLY CARRIED THE CALIFORNIA MINIMUM COLLISSION COVERAGE OF $5,000.00.  MY DAMAGES ESTIMATE IS ALREADY AT $4,500.00 AND WILL LIKELY GROW SOME MORE.  HER INSURANCE COMPANY IS SAYING THAT THEY WILL NOT BE ABLE TO COVER MY RENTAL CAR IF TOTAL DAMAGES EXCEED $5,000.00 WITH THE REPAIRS. THEY WON'T NEGOTIATE, AND I DON'T HAVE RENTAL COVERAGE.  AM I RESPONSIBLE FOR LACK OF ADEQUATE COVERAGE?  

Answer
Hi Natalie,

Why don't you make the rental claim and your deductible on the tortfeasor's and the repair costs versus your own collision coverage?  Yes, there will be resistance to that, but just open a claim on your property damage and let your company pay for the repairs, while you contribute the deductible.

Get to the point of making a potential complaint to the state insurance commissioner http://www.settlementcentral.com/links.php if the adjusters will not cooperate.  In truth, they probably do not have to do it this way, but if you send the supervisor of your own company a filled out complaint form from the office of the state insurance commissioner, then that supervisor might just change her mind and agree to take the hit on the rental costs plus your deductible.

I will admit that if I were your own insurance company adjuster I would be against this idea because it means that part of the $5,000 is going to YOU for the rental and to repay your deductible, leaving a potential shortage for the tortfeasor's policy to repay your own insurer.

Sooo, you might not be able to do this.  And if not, then YES, you ARE responsible for a lot of damages caused by irresponsible people.  That is why we do insure ourselves against the negligence of the good ole common folk, who usually do as little as possible.   Always buy high Underinsured Motorist coverage for the same reason.

Also, do not forget about taking charge of getting any injuries reported and handled before you release the tortfeasor.  If you have injuries, then look at my website (below) for ideas.  Or you can write to me again if you have any questions.

Best wishes,

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