QuestionHello! I was involved in an accident on 4/2/11 that was 100% the other driver's fault (ran a stop sign). Under the advice of our insurance company, who said it didn't really matter either way, we decided to use the at-fault driver's insurance to process everything. They said we'd get a settlement quicker that way.
We are dissatisfied with the appraisal on our vehicle -- it is approximately $2,000 less than the real market value of our vehicle and used unverifiable vehicles to determine the value of a comparable vehicle. After failed attempts to negotiate a more fair settlement with the insurance adjuster, we decided to ask our insurance company for advice.
Our insurance said they could look at the vehicle and do their own assessment. If we found their offer to be more reasonable, they would take over the claim and settle everything for us, then go through subrogation with the other insurance company. However, they said that the other insurance company would deduct from their reimbursement money to compensate themselves for the time already spent on our claim.
Is this true/legal? I'm afraid, with what I've seen from this insurance company already, that they're charge a small fortune for their "time" and we'll lose even more money by deciding to use our insurance company. Did we make a mistake that can't be reversed at this point?
AnswerThat is not true in my experience. In order to answer your question properly, I would need to know what State we are talking about.
Basically, if you go through your own insurance, you have a contract that dictates how the claim is handled. If you go through the other carrier, then that carrier most likely owes you for any damages that their policy holder is legally liable for. I hope that makes sense.
An insurance company that subrogates (your insurance company) would need to just prove that what they paid you was reasonable, and the other company would owe reasonable damages. I have not heard of an insurance company deducting from reimbursement for time spent on a claim. In fact, I am 99% sure that is not allowed, at least the way I am understanding it. If your insurance company is referring you to another carrier or dissuading you from filing a claim with them, then they may be in violation of your State's insurance code.
Finally, I am sorry for the delay, I have been in a three day conference and unable to access the web or my server! I hope this helps, and feel free to followup with us directly. Information is always free at Petty Details, LLC!
JP
