QuestionQUESTION: I was hit along with another car by a driver who has Safe Auto (state minimum coverage). The total amount their policy will cover is $10,000 for property loss.
Unfortunately I only carried liability on my car. My car was a total loss and value by Safe Auto at $5049 dollars. The other car was a brand new Acura and repairs were done that exceeded $13,000. I’ve learned that the $10,000 will be split according to the percentage of total dollars. Meaning I’m going to end up losing about 2 or 3 thousand. I’m planning on suing the driver for the difference.
The problem I’m having is that Safe auto and the insurance company for the Acura driver and taking forever to come up with the amount they are owed thus holding up the whole process. The Acura driver has his car back and four months later I have no money and no car. What options do I have?
ANSWER: Hello Frank,
Completely outrageous. First, I would suggest that you visit my website
http://SolutionsForYourInsuranceClaim.com
Browse through the articles for specific remedies on how to deal with the adjuster and the claims staff that has allowed this to go on for so long. I also have an ebook which goes into much more detail if you are so inclined.
The bottom line is, you must become proactive in your claim. You cannot allow the insurance company to continue to ignore you. To require you to wait four months for a settlement while the other driver has received priority status is an outrage. Reading between the lines I wonder if the other driver is also claiming injury and/or has an attorney representing him.
I suggest you go above the adjuster's head. With your claim number in hand, call the insurance company and find out who the claims manager is. Call the manager to address your concerns, and follow up in writing - return receipt.
You need to get tough. Polite, but tough. Sadly, this is usually the only way to get some insurance companies to settle.
You might also look for information online on how to file a complaint with your state Department of Insurance. Most states have processes in place for consumer complaints. While the state cannot intervene directly into your claim, the complaint is at least an inconvenience for the insurance company. A complaint can often serve as a second way to get a carrier to act.
As an aside, your predicament is a good argument for collision insurance. In that case, your carrier pays and then fights for reimbursement (including your deductible) in a process called subrogation. Think about it next time you purchase car insurance. If your car damages exceed $5k and the vehicle is not a total, collision insurance might be very cost effective for you.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
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QUESTION: Thanks Jane for your timely response. Very helpful!
Your right about getting tough. I've thought about going above the claim adjusters head but me being the nice guy I am I didn't want to get him in trouble, but at who's expense? Mine that who!!
I'm going to call the claims department tomorrow and speak with the claims manager. I will also follow up in writing. Should I ask him (the manager) for his mailing address? Send it certified mail? Thanks again for you help. $5000 isn't a lot to some people but it has put me and my family in a bad spot.
Side note, I have since went to collision coverage on my other cars, so I have learned one lesson.
ANSWER: Hello again, Frank ...
I would ask for the mailing address from the first person that answers the phone. Give them the claim number and ask where you can mail documents and correspondence. Then ask for the claims manager. If he's not available, you can leave a message, but call back. Keep calling until you get the manager on the phone. And if the manager does not respond to your message(s) in a timely manner, write down how many times you called and when. You never know - you might need this.
Yes, send your follow up certified, return receipt request. It will cost you a few dollars, but I believe it's worth it.
Good idea on the collision!
PS $5000 is a lot of money to most of us!
Let me know if you need any further assistance. Good luck. Be persistent!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.comG
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QUESTION: I finally received the subrogation offer today, I'm due to be paid about $2100 dollars for my percentage. They valued my loss at $5400. They are asking me to sign a release absolving them and the client from any further legal action. I have no problem releasing them since they have fulfilled their obligation however I do plan to take the driver to small claim court for the remainder that I'm owed. Do I have to sign this in order to get my money from the insurance company? Should I just remove their clients name from the agreement and then sign? They said both parties have to agree in order to settle. They other persons damage was $1900 and their offer is $7900. Any advice??
Answer Hello Frank,
One minor detail first. This is not subrogation. Subrogation is when your insurance company has paid your claim, and then goes after the at fault company for reimbursement. This is an important distinction, and you don't want to refer to this as subrogation in court.
Now to the details. These pro-rata settlements are meant to be fair based on percentage of loss and coverage limits. So if your damages are $5400 and the other driver's was $1900, why are you receiving $2100 and the other driver $7900. He's getting almost 80% of the coverage, you're receiving just over 20%. That makes absolutely no sense to me. Has anyone provided an explanation? Could it be because the other driver has an attorney?
Sorry, but the numbers just don't make sense.
As for signing and agreeing to a settlement offer ... if you do that, you will not be able to sue the driver separately. His insurance company has an obligation to protect him. That means they will insist on your releasing ALL claims against both the company and the insured. If you cross out the other driver's name and sign a release against them, I doubt seriously they would act on that. That's a bad idea all around.
You're stuck. From an insurance standpoint I would sue the driver in small claims court for your total damages. His insurance company will defend him up to the limits that they can. That way you have not signed away your right to sue the driver.
Again, this is based on an insurance perspective. I can tell you that if you sign that settlement agreement, and based on my own experience, if you do so, you're done. You might want a separate legal opinion on the actual procedures for filing your suit. Such as ... the limits in small claims court, which are probably below your damages.
I wish you well.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
