QuestionAdditional info to previous letter. The rental car was rented by my mother. She didn't add other drivers to the rental agreement. She refuses to give her insurance info. I called GEICO (our insurance co) on 11/21 and they in turn sent a letter dated 11/21 and claimed they "investigated" our claim. The ins. co cites CA prop. 103--to inform the driver of liability. Specifically, the driver failed to keep a safe lookout while backing. Now, I dispute this because I remember looking left, right, left and only backed out no more than 1 ft. There was superficial damaged to the rental's bumper. It passed inspection upon return to rental co. Since there is not any pictures of the rental but probably of the other car, could fault be determined in any way by the other car's damage i.e., speed plus again, a broken horn? Also, the other driver, after the accident was observed by my passenger and I, to drive through a parking lot stop sign.
I faxed a letter to our ins. co (GEICO) on 11/27. It basically covers the following: fighting liability w/other ins. co. I stated my reasons for fighting liability: (1) Other driver traveling too fast in parking lot and (2) other driver's horn not operational, saw dangling wires plus the driver admitted not having a working horn. I included that the duty of care fell to her because she had the last clear chance to avoid an accident if she had a working horn.
I have yet to send a certified letter because (a) do you think I should send one to the collection agency, the other insurance co. and my insurance co.?
P.S. The other insurance co. NEVER sent me a letter explaining that I am liable. I heard nothing until a few weeks ago from a collection agency that demanded immediate payment plus interest. Is this legal in CA?
Thankyou and please respond ASAP. I appreciate any help you can offer. Jeff-------------------------------------------
The text above is a follow-up to ...
-----Question-----
Hello,
Thank you for working wiht this web site.
THis past July I had a rental car and was backing out of a spot in a crowded lot when I was hit in the passenger side rear. No damage to my rental, the other driver broke her headlight. When I go tout of the car she told me her horn was not working, and I looked in to see the hor dangling by it's wires.
We both phoned the police who explained that they would not come out and we should exchange info.
We did.
My mom returned the rental, no damage. I was added as a driver however the accident occured on the way to the rental office.
I was contacted by the other drivers insurance and sent a accident report which I promptly filled out and returned this past July.
I had asked my mom to provide insurance info. to the other drivers insurance company.
Yesterday, I received a letter from a collection agency saying I owed $1500.00 to the other drivers insurance company.
I told them on the phone that I beleive it was not my fault.
How to resolve this fairly?
Thanks much for your insights!
Jeff Stone
-----Answer-----
Dear Jeff,
The duty of care is upon the one who is backing up. You have to do that safely, or do not move your car.
Having said that, however, the burden to avoid the accident next shifts to this woman, who had the last clear chance to avoid the accident. Since her horn was broken, she breached the duty of care she owed to other drivers, especially to you.
I would rule this in your favor not just because of the broken horn, but also because you were far enough backed up without any problem that you could assume you then had acquired the right of way as opposed to any cars coming down the lane.
Thus, I would not pay a dime. I would let your insurance company know about the claim, and I would also LET THEM KNOW THAT YOU ARE FIGHTING LIABILITY on the grounds I stated.
That is important because you do not want your insurance company to just go out and throw money at this to make it go away and then turn right around and tag you with an "at-fault" accident, thus putting you in line for A RATE INCREASE!
I am also curious how the claim came to a collection agency. It is my belief that her company did the repairs, and did not think it merited going after you, so they peddled the claim to the collection agency, which will split with them in some unknown percentage (50/50?).
ON SECOND THOUGHT, this makes me mad enough that I would make up a certified letter with my arguments above in it and I would send it to the collection company and tell them to go pound sand. Should you elect this route, you will exclude your insurance company from defending you, but if you can think up a counter claim to threaten the collection agency with (damages or injuries), then they may just go away.
Good luck on this, Jeff
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
AnswerDear Jeff,
You are on the right track, but you need to make the insurance adjuster understand that the burden of avoiding the accident shifts to the one who had the last clear chance.
That is the other driver, who not only was not paying attention but also lacked the means to notify you of her presence. If she had been exercising due care and caution and her equipment was not faulty, there would not have been any accident.
Stick with that. Fight against the "at fault" designation to avoid an increase in your rates. Maybe ask your insurance commissioner http://www.settlementcentral.com/links.php as to how you can contest the "at fault" conclusion of your own company.
As to the collection company, you can ask your state attorney general whether or not they can initiate collection without the first party sending a letter of debt.
I suspect that there is nothing wrong with that procedure, but still, understand that they likely took this case on a split of the recovery and so there is nothing invested in it for them.
On the other hand, if your conversation with your attorney general should reveal any potential liability, do not hesitate to use it against them. That is the only time I would send the certified letter: i.e. in the case where there could be some liability on their part.
Best wishes, Jeff
Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com
